Bank Holiday Monday, the 31st of May, was notable for the (generally) nice weather that we enjoyed, but it was also a significant day in another way. It was Tax Freedom Day (TFD) – the day when, in theory, “average” Britons stop working for the taxman and start earning for themselves. What was particularly significant is that the 31st May is the latest date in the year since 1995 that Tax Freedom Day has been recorded, being one day later than last year. That may not seem too bad, but in fact TFD has gone back by almost a month since the mid-1990s.
Of course the actual date will vary substantially for individuals, coming later for high-earners and earlier for low-earners and the unemployed.
As we at M&S Accountancy & Taxation stress, it's the job of HMRC to collect all the tax that is due - not a penny more not a penny less. There are many ways in which people inadvertently pay too much tax or too little tax, and it's the job of tax specialists such as us to make sure that our clients get it right. If you are unsure if you are paying the correct amount of tax (or claiming the correct allowances), call us for a chat and see if we can help you.
Vivian Linstrom, M&S Accountancy & Taxation