Why it will take you longer to pay off your tax bill this year


The day when Britons have effectively paid their taxes for the year and will start keeping the money they earn is later than usual in 2016, falling in June for the first time in 15 years. 

Tax Freedom Day falls on Friday, June 3, four days later than last year, according to the Adam Smith Institute.

The economic think tank called the day's delay "a red flag that Britons’ tax burden is moving in the wrong direction". 

What is Tax Freedom Day - and why should you care? 
Although net national income is £34.6bn higher than in 2015, the country's collective tax bill has grown by £35.4bn, meaning workers are £800m more out of pocket than last year, according to the ASI's calculations. 

Overall, tax receipts – including income tax, national insurance, local taxes and indirect taxes such as VAT and corporation tax – are projected to be 42.27pc of net national income in 2016.

This means that Brits effectively work 154 days of the year solely to pay taxes before pocketing the full amount earnt between June 3 and December 31.