Although, 38% of the nation thinks they’d be confident in sorting out their tax planning without help of professional advice, unbiased.co.uk’s research shows that three out of four (77%) Brits admit they haven’t done anything in the past 12 months to cut their individual tax waste figure, up from 68% last year. 

UK taxpayers’ tax wastage 2014 – the key stats:

£2.9 billion in pension tax relief waste

• UK employees on average put away £3,260 annually into their pension, including £652 a year in tax relief from the government
• 4.4 million UK adults are currently in employment not saving into a pension and not making use of their pension tax allowance from the government resulting in £2.9 billion in tax relief set to remain unused this year
• Anyone paying towards a pension receives tax relief on their pension savings at 20% and up to 45% according to the rate at which they pay tax.  If you are a higher rate taxpayer the onus is on you to claim back the additional tax relief owed to you

£1.1 billion in ISAs

• 49 million UK bank account holders are set to waste a combined total of more than £1.1billion by not moving their money into tax-efficient individual savings accounts (ISAs)
• Of that wastage, £984 million can be attributed to failure to use cash ISAs and a further £160 million in stocks and shares investments not held in ISAs

£530 million in inheritance tax waste

• £530 million wasted in inheritance tax (IHT) by individuals not placing life protection policies ‘under trust’
• Not placing it under trust could reduce a £100,000 life insurance payout by as much as £40,000 if an individual’s total estate is worth more than £325,000
• Only 27% of people would be confident in tackling IHT planning without the help of a professional adviser

£154 million in capital gains tax

• £154 million in unnecessary capital gains tax (CGT) payments this tax year
• 2014 unbiased.co.uk Tax Action research shows one of the main areas of CGT waste occurs from people not using ISAs to shelter investments from any tax liabilities
• Each UK taxpayer has an annual CGT free allowance, which for the current tax year stands at £10,900.  Any gain above the allowance is charged at 18% for lower and 28% for higher rate tax payers

If you would like more information please call me on 01753 626866 or visit our website at www.gileswarren.co.uk

Thanks

Giles