Taxes put 20% on the cost of a family Christmas

TAXES add nearly 20 per cent to the cost of Christmas, a report reveals.

The average household will pay £241 in tax as part of their festive spending, according to research by the TaxPayers’ Alliance. Overall, the country’s Christmas tax bill is estimated at £6.3billion.

Alliance spokesman John O’Connell said: ‘Every year taxpayers work hard and save so they can enjoy the Christmas break with their families, but HMRC makes it increasingly difficult to do so … The taxman should stop playing Grinch and leave us a bit more for our Christmas stockings.’

The report suggests that the average consumer will spend about £544 on Christmas – up nearly 2 per cent on last year, and 38 per cent higher than the European average.

And the average household will spend around £1,355 on gifts, travel, socialising and food and drink.

On a £999 iPhone X the VAT is nearly £200. On a £130 Lego Star Wars BB-8 the tax is £26. Even higher taxes are paid on alcohol. A £35 bottle of Moet & Chandon Champagne includes nearly £10 of tax and

‘Shopping on the web’

duty. A £40 John Lewis box of crackers includes £8 in tax.

The average family spends £17.87 in fuel duty over Christmas. Nationally the taxes add up to £241million.

December spending on alcohol is £4billion – meaning duty revenues for the taxman of £1.2billion – or £44.65 for each household. The average family pays £175.68, the researchers found, or £4.7billion nationally.

Online sales will be triggered tomorrow as millions of people spend Christmas shopping on the web. Next will launch its sale at 3pm followed by Marks & Spencer and John Lewis at 5pm.

Other sales from the likes of Argos, Boots and Halfords will start on Christmas Day amid predictions that the amount of money spent shopping online on December 25 will hit a record. The online retailers’ trade body, IMRG, estimates spending will be £844million, which would be up by 6.3per cent on a year ago.

It believes the figure will be higher still on Boxing Day, breaking the £1billion barrier and 7.9 per cent up on a year ago.