£9bn of wasted tax this year
The latest Tax Action report from Unbiased.co.uk has found that we collectively waste £9 billion in unnecessary tax payments this year.
Despite 31% of Britons predicting there will be substantial tax rises after the General Election, 86% admit to doing nothing to reduce their tax liabilities.
The biggest waste of tax uncovered by the survey was Tax Credits, with nearly £4 billion wasted each year.
This was closely followed by Inheritance Tax where people are wasting a total of nearly £2bn of unnecessary tax payments a year.
The good news is that tax wastage appears to be on the decline.
This year, the total amount of tax set to be wasted by individuals was done 9%, after reaching a £10bn peak last year. People living in Greater London and the South East are wasting the most tax – over £2.6 billion in total.
Even with a rising tax burden, there are plenty of ways in which you can organise your financial planning to ensure you do not waste available tax allowances and exemptions. Speak to an independent financial adviser today to ensure you are not including your own money within this £9bn of wasted tax in 2010.