Happy tax freedom day, permies!

[DimPrawn]

British employees work for 150 days to pay tax bill | City A.M.

BRITISH workers will today celebrate tax freedom day, as employees stop paying money to George Osborne and start keeping their earnings.

The average person spends 150 days a year working to pay taxes, with a full 41.5 per cent of the nation’s income going to the government in 2013.

Hope you enjoyed your stint!

Have a tax free banana

[doodab]

Their sums are wrong. Even the most hard pressed permie gets 28 days leave, which means 150 days is about 65% of a working year.

[DimPrawn]

Their sums are wrong. Even the most hard pressed permie gets 28 days leave, which means 150 days is about 65% of a working year.

You pay tax on holiday as well you know?

[doodab]

You pay tax on holiday as well you know?

You pay tax 365 days a year, but you don't work all of them, which is what the article seems to assume.

Based on working 232 days a year, 96 of those are to cover the tax bill (41.5% of 232 days)

Contractors (and permies with more than the legal minimum holiday entitlement) work less days, so less days are spent working for the tax man. OTOH they probably pay more income tax and spend more money so their overall tax contribution as a percentage of their income may be higher than the average 41.5%.

I certainly don't spend 96 days working to pay tax, but that's because come January/February when it's cold and tulip and I'm well into the higher rate tax bracket I'd rather have my time to myself than work. I'd bet that more than 41.5% of my day rate ends up in Hector's pocket when VAT and duty is taken into account though.

[SimonMac]

We are all permies, of one Co or another

[mudskipper]

You pay tax 365 days a year, but you don't work all of them, which is what the article seems to assume.

Based on working 232 days a year, 96 of those are to cover the tax bill (41.5% of 232 days)

Contractors (and permies with more than the legal minimum holiday entitlement) work less days, so less days are spent working for the tax man. OTOH they probably pay more income tax and spend more money so their overall tax contribution as a percentage of their income may be higher than the average 41.5%.

I certainly don't spend 96 days working to pay tax, but that's because come January/February when it's cold and tulip and I'm well into the higher rate tax bracket I'd rather have my time to myself than work. I'd bet that more than 41.5% of my day rate ends up in Hector's pocket when VAT and duty is taken into account though.

You've hit the nail on the head - many of us would rather have less money than pay higher rate tax.

Even as a permie, I went part time as soon as I hit the higher tax bracket.

So, increasing threshold for higher rate tax would actually raise more government dosh from you and me and probably many others. Not to mention making dodgy offshore schemes seem a lot less attractive.

[d000hg]

We are all permies, of one Co or another

Except for the self-employed or people who don't have full-time jobs.