Despite a wave of austerity and constant claims that more tax simply has to be claimed from UK taxpayers, it has been revealed that the taxman actually pockets extra money in the region of £13.5 billion.
This sum is claimed as a result of people failing to become tax efficient, and not claiming tax breaks that are available to them.
The Tax Action Report created by unbiased.com shows us that UK citizens are giving HMRC the most money by failing to claim tax credits, such as child benefit, child tax credits working tax credits and pension tax credits. Apparently £8.5 billion credits went unclaimed last year.
After tax credits the biggest area of wastage is inheritance tax. According to the report £1.3 billion is lost simply due to basic mistakes that would have been spotted with even the slightest of planning.
The report also states that 88 percent of UK citizens have done nothing to reduce their tax bills and become more tax efficient, despite all the rises that have been introduced. The report also discovered that 45 percent of people believed themselves to be tax efficient when n fact they weren’t, and that 25 percent have no idea how to become tax efficient.
This report further highlights the importance of financial planning. In today's age of austerity it is vital that you make the most of your money and become as tax efficient as possible. Speak to a recommended financial adviser to learn more.