Tax Freedom day is the day that taxpayers stop working for Gordon Brown and start earning for themselves. Following the budget this has moved to 3 days later in the year this year. The Adam Smith Institute has calculated that the average person will have to work until June 3rd to earn enough money to pay their annual tax liability - that's nearly half the year! June 3rd is the latest Tax Freedom day since 1988 and a sign of the increasing tax burden. For comparison, tax freedom day in the US is on 11th April!

Another study by Patrick Minford, professor of economics at Cardiff University says Britain's top earners are paying substantially more than half their earnings back to the government in taxes, when all factors are taken into account.

It shows the overall marginal tax rate on Britain’s highest earners has risen to 57.1%. The study showed average taxpayers are not much better off, paying around 48.5% once national insurance contributions, value added tax and excise duties are added to income tax.

Of course these studies are for the average person. With appropriate advice and proper tax planning we can help to ensure that your own personal tax freedom day is as early in the year as possible.

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