According to a Tax Action Report by online financial advice website unbiased.co.uk, nearly £13.5 Billion was unnecessarily paid to the revenue over the past 12 months.
The report was commissioned to investigate the amount of money wasted due to errors people make with their personal finances - in particular, mistakes which end up costing more in tax payments.
Overwhelmingly, Tax Credits took center stage with a whopping £8.5 Billion pounds of unclaimed child benefit, child tax credits, working tax credits and pension credits. Interestingly, the report also cast light over people avoiding simple tax planning measures with inheritance tax. Tax planning which could have saved them over £1.3 Billion.
Other tax 'errors' people make included:
- Income Tax and Personal Allowances - these total nearly half a billion pounds over the last 12 months. Use this calculator and make sure your tax codes match the personal allowance you expect. It will also check your tax reliefs on your pension and more.
- Self Assessment Errors accounted for a further £236 Million in overpaid tax - A good tax adviser will be able make sure you are claiming every relief and allowance you are entitled to, as well as using losses and more to reduce your final tax liability. Our TaxPenny Online Tax Service provides a cost-effective solution with minimal hassle to you.