UK taxpayers to waste £4.7 billion in tax

As the end of this tax year – 5th April 2014 – draws ever closer, have you made the most of your tax allowances?

Recent research by industry experts, unbiased.co.uk, has revealed that a quite shocking amount of money is wasted every year because of inefficient tax-planning: a total of £4.7 billion!

That works out at £161 tax wasted by each individual taxpayer.

Despite this significant sum per person, the research found that 77% of people have done nothing to reduce their tax waste this year, with 62% admitting that they wouldn’t be confident in tackling their tax waste without the help of a professional adviser.

The key figures on UK tax wastage in 2014

Pensions tax relief waste

4.4 million UK adults are currently in employment not saving into a pension and not making use of their pension tax allowance from the government resulting in £2.9 billion in tax relief set to remain unused this year.

ISA tax relief waste

49 million UK bank account holders are set to waste a combined total of more than £1.1 billion by not moving their money into tax-efficient ISAs.

Inheritance tax waste

£530 million wasted in inheritance tax (IHT) by individuals not placing life protection policies ‘under trust’

Capital gains tax waste

£154 million in unnecessary capital gains tax (CGT) payments this tax year

What should you do to minimise your tax wastage?

Marchwood IFA’s aim is to bring together our wealth of experience and individual expertise to offer a full Independent Financial Advice service to our clients. We believe that to get the best possible advice you must speak to an adviser that has expertise in the particular area you wish to focus on. That means that our clients are assisted by different advisers depending on the area of advice required. Our tax specialists are on hand to assist you in making the most of your tax allowances and exemptions. Call us now, while there’s still time to help you before the end of the tax year.