Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Taxpayers expected to waste £9bn in 2010

12 March 2010
Categories: News
Poor planning to blame, claims report

Britons will waste £9 billion in unnecessary tax payments this year by failing to take simple tax-planning measures, according to Unbiased.co.uk, a web portal for users seeking financial advice.

A new report by the site shows that the biggest tax wastage will be caused by failure to claim nearly £4 billion of tax credits and by overpaying inheritance tax of almost £2 billion.

Taxpayers are also predicted to mistakenly hand over £516 million of capital gains tax because of poor tax management, and waste the opportunity to use personal tax allowances to the tune of £328 million.

Unbiased.co.uk’s document claims that while almost a third (31%) of individuals expecting taxes to rise substantially after the forthcoming general election, with a quarter (25%) of people expecting couples with young children to be hardest hit.

But more than half (53%) of the taxpaying population is doing nothing to prepare for the increases – and the vast majority (86%) of Britons admit to doing nothing to reduce their tax burden, although 30% have prepared to pay a larger tax bill by cutting down on luxuries such as eating out.

The £9 billion that Unbiased.co.uk expects the UK to waste is a 9% reduction on the figure forecast by the portal for last year. It is the equivalent of £186 for every taxpayer.

The site’s chief executive, Karen Barrett, remarked, ‘While it is encouraging to see our annual tax wastage is set to go down… £9 billion is still a colossal amount to be lost through error and avoidable circumstances.

‘This decrease in tax wastage could… be down to the shrunken economy, with simply less disposable income for the taxman to get his hands on.’

Categories: News
back to top icon