Frozen thresholds could push ‘tax freedom day’ to latest date this century

Tax freedom day is the point in the year you stop earning for the taxman and start earning for yourself. A rising tax burden could push it to 12 June this year – the latest date since 1982.

Woman looking exasperated about her personal finances
Frozen thresholds are pushing tax freedom day progressively later in the year
(Image credit: Damircudic via Getty Images)

Tax freedom day could finally come around this week. It is due on 12 June, based on previous forecasts from the Adam Smith Institute. If the think-tank is correct, it means taxpayers will have spent the first 163 days of the year working for HMRC.

It is a symbolic date rather than a real event in the calendar. It represents the point in the year you would stop working for the taxman and start paying yourself, assuming you channelled all of your earnings into paying your tax up front. The last time tax freedom day came this late was last century, falling on 12 June in 1982.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.