The tax on Christmas 2018

New research by the TaxPayers' Alliance shows how the taxman drains away our Christmas cheer by imposing stealth Christmas taxes. Christmas taxes, as calculated by the TaxPayers' Alliance, include the cost of VAT on shopping items, as well as fuel duty, the new sugar tax, and alcohol taxes.

With rising inflation and the highest tax burden in 49 years, many in the UK are struggling with the cost of living. Despite this pressure on finances, households across the country still intend to enjoy the festive season. Research from Deloitte shows that the average UK consumer intends to spend £567 this Christmas, which is an increase of 1 per cent in real terms from last year, and 42 per cent more than the European average. Consumers in the UK spend the most in Europe, followed by the Spanish with an average spend of £526.


Key findings

  • This Christmas, UK households will pay an average of £211 in tax on their festive spending, enough to buy 17 luxury Lidl Christmas puddings.

  • The total Christmas tax bill will come to £5.7 billion.

  • The average household will spend £1,355 on Christmas gifts, travel, socialising and alcohol.

Click here to read the full report

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