UK adults are wasting £7.6 billion in taxes
Four out of five adults will waste £7.6 billion in unused tax credits this year, according to new research.
The research from IFA Promotion, on behalf of UK-based financial advisers, found that 78% of UK adults admit to doing nothing to help reduce the amount they pay in tax, and that the average UK adult will therefore squander £155 this year in tax.
IFA Promotion’s study also reveals that the biggest area of tax waste stems from the tax credit system – where people lost out on £2.9 billion.
David Elms, chief executive of IFA Promotion, said: “Whether through apathy or confusion, the failure to claim tax credits is just one way we’re gifting unnecessary and vast sums of money to the taxman each year.
“Over the past few years, the onus for managing tax affairs has shifted increasingly to the individual, but our awareness and action is not keeping pace, and so the mountain of tax waste keeps growing.”
He added that people should ensure that they took up any tax credits that they were entitled to and that they should make sure they used an Individual Savings Account if they were saving to make the most of the tax credits. He said many people would benefit from financial advice to make sure they were not paying too much in tax.