You are here: Home - Saving & Banking - News -

Overpaid tax waste ‘tops £8bn a year’

Written by:

Around £8bn will be overpaid in tax this year, according to research compiled by lobby group IFA Promotion (IFAP) as part of its TaxAction campaign – and almost three-quarters of people will do nothing to reduce their bill.

The research suggested that, in total, more than 80% of society is tax-inefficient and that this level of error costs £7.9bn a year, a figure £300m higher than the one predicted in the year’s previous report.

It also found that personal tax levels have soared over the last two decades from a collective £40.5bn to £149bn – with 62% resenting the rising bill but 75% not proposing to do anything about it.

IFAP claimed that tax waste will equate to around £160 per person in 2007.

Chief executive of IFAP, David Elms, said: “Suince we launched TaxAction 15 years ago, we have seen a shift in responsibility in personal tax away from HM Revenue & Customs towards the individual.

“Despite the controlling of tax being more firmly in our own hands, we are still throwing away £7.9bn. It is hard to say whether we are disengaged or just confused as to why people across the UK are still throwing away billions each year.”

He concluded: “Simple steps such as filling out a self-assessment form correctly, making a will and taking full advantage of your tax credits could help the UK pocket this wasted cash as a significant UK investment.”




Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
HSBC posts record profits of $22bn

HSBC, the biggest bank in Europe and a major supplier of UK current accounts, has posted a 5% rise in...