ADRIAN WIDDOWSON, director of taxation at York-based accountants Garbutt & Elliott, takes a look at Tax Freedom Day and what it means for the taxpayer.

EVERY year the Adam Smith Institute works out the date of Tax Freedom Day in the UK.

What is tax freedom day? Well, we all pay taxes and if you assume that you are working exclusively for the taxman to get your taxes paid first, Tax Freedom Day is the moment you have unburdened yourself - and the rest of the year's lolly from here on is yours.

This year, it falls on today's date, June 11. Looking at just the amount paid in tax, Tax Freedom Day actually fell on May 30 this year. However, that is an under-estimate of the true position, because it ignores government borrowing, which is merely taxation deferred into the future.

International comparisons are quite telling. In Sweden and Denmark, for example, taxes swallow up the whole of their populations' income until the end of July. By contrast, Americans reach their Tax Freedom Day on April 11.

These dates are, of course, merely averages, worked out on the basis of total government revenues compared with the size of the economy.

It would be difficult to work out any individual's Tax Freedom Day, because we would need to take into account not just income tax, but also VAT, council tax, and so on.

As with any average, there would be plenty of people whose Tax Freedom Day is later as well as those for whom it falls earlier.

At Garbutt & Elliott, we aim to ensure that our clients enjoy a Tax Freedom Day no later than is necessary under the law.

Updated: 10:31 Friday, June 11, 2004