Many People Could Be Paying Tax Needlessly

Many People Could Be Paying Tax Needlessly

March 15th 2011 12:54 am

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According to HSBC a large amount of consumers (82 percent) are in the dark about the amount of tax free allowances they are e ...

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According to HSBC a large amount of consumers (82 percent) are in the dark about the amount of tax free allowances they are entitled to. This is more prevalent with those who are within the group of lowest earners - people who most likely would pay little or no tax. Some CIS Subcontractors who pay tax upfront at 20%, or 30%  if they are unregistered, may not be aware they have a tax free allowance in the 2011 tax year of £7,475. This would guarantee a minimum refund claimable of over £1,300 if they submit a tax return at the end of the tax year. People with savings are taxed on the interest earned upfront and receive interest net of 20 percent income tax. However, savings are also privy to the tax free allowance so they may have a claim for a refund of tax on their savings. This is more likely with older generations where on average 80% of people were unaware of their higher tax free allowances and the fact they can reclaim tax already paid on their savings interest. Use our quick tax calculator widget below to check what your allowances and taxation should be in 2011. If you are CIS/Self Employed or have multiple income sources and need a tax calculator which will calculate your allowances, tax, state pension age and any savings tax refunds - head over to our UK Tax Calculators Wizard.

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