What is the real percentage that our wages are taxed?
For 2009, the “Tax Freedom Day” (when all the earnings of an average person on average wages are earnt to keep) was 14 May. This means it takes you 134 days in the year before you have paid your full tax liability (VAT, Council Tax, PAYE, National Insurance, VAT, petrol duty, etc). Considering there is 365 in the year, that works out at 36.7% of your salary goes on tax! A little benefit though is that the deemed average wage is around £27k, so someone earning £20k would pay a slightly lower percentage as they have a greater proporation of their earnings taken up by their annual personal allowance.
