£5bn tax bill on Christmas

Friday, 19 December 2008 10:56

Father Christmas is set to receive a £5.1 billion tax billion, according to new research.

However, the amount of revenue from Christmas spending heading to the Treasury this year is lower - as spending drops as the treat of recession looms.

The average British family's tax bill for Christmas is expected to be at £204 - down from £225 last year.

This is partly down to the VAT cut and partly to families reining in spending over the holidays.

Mike Denham, former Treasury economist and author of the TaxPayer's Alliance report, said: "Despite the VAT cut, the taxman is still charging people a hefty bill on the season of good will.

"Santa is lucky they haven't taxed his sleigh yet."

The total tax income for the government is down from £5.65 billion last year. It is made up of £3.7 billion on VAT, £1.3 billion in alcohol duty and £141 million on fuel duty from people travelling to see family and friends.

The figures were compiled using accountancy firm Deloitte's Christmas Retail Survey, which finds the average British family spends £1,244 each Christmas.

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