Britons Pay GBP10bn More Tax Than Necessary

by Robin Pilgrim, LawAndTax-News.com, London

13 March 2009

British taxpayers will waste over GBP10bn (USD13.9bn) in unnecessary tax in 2009, according to the latest Tax Action report from professional advice website unbiased.co.uk.

According to the report, the amount of tax wasted through poor financial planning will increase by GBP700m (USD974m) in 2009 compared to 2008, amounting to the highest ever wastage in 17 years.

The report goes on to point out that, despite this ever increasing tax waste mountain, British people are still not taking action to save money and reduce the amount of tax they pay.

Over four fifths of UK taxpayers (81%) admit to doing nothing to reduce their tax payments over the past year. And with the credit crunch putting an ever growing strain on people’s finances, it is more important than ever for people to act now and claim back their unnecessary tax payments.

David Elms, chief executive of the professional advice website commented:

“With individuals and families forced to tighten their belts this year, it is alarming how little people are doing to take advantage of the tax incentives, reliefs and credits available to them, and to avoid being hit by fines for basic mistakes. We estimate that each UK taxpayer will waste an average of over GBP191 (USD265) in tax payments this year, although this sum varies greatly based on lifestage and financial circumstances.”

The website's report concludes that Greater London is the UK’s tax waste capital, with over GBP1.4bn (GBP1.94bn) being lost in tax.

Londoners are closely followed by the rest of the South East in their tax wastage, while Northern Ireland is the most tax efficient with only GBP290m (USD403m) being lost.

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