UK Taxpayers Paying £5 Billion In Unnecessary Tax, Claims New Prudential Report.

Are you a taxpayer paying more than you need to?

Are you wasting money by not taking advantage of all the necessary tax breaks available? If you are then you should be talking to your accountant or having a quiet word with your financial adviser. Mind you: you’re not alone. Many people like you are also failing to make the most of the tax-efficient advantages available. Just how widespread is the problem? Well, research suggests that taxpayers across the United Kingdom are overpaying almost £5 billion in needless tax payments because of a lack of financial awareness and concern or insufficient knowledge.

That particular research was commissioned by Prudential and unbiased.co.uk.

In its 2015 Tax Action report, Prudential and unbiased.co.uk found that taxpayers’ inability to take advantage of allowances via ISAs, pensions, capital gains tax and inheritance tax has resulted in billions spent in error. The report also worryingly suggests 75% of taxpayers have not even attempted to reduce their tax bill in the last 12 months.

Commenting on the findings of the report, Les Cameron, a tax specialist at Prudential said:

“Tax planning requires triple vision – a focus on the best tax efficient return for your savings while invested alongside the tax position when you put your money in and get it back out again. Get the balance right and you’ll not have to pay unnecessary tax now or in the future.”

“Using a professional financial adviser [or accountant] will help provide clarity in finding the most tax efficient way for you to invest your money over the longer-term.”

So what options are available to tax payers?

Where can they find the most tax-efficient return on their savings? Well, there are a number of ways in which UK residents can reduce their tax bill, whether that’s using a pension if you are aged 55 and over to make use of tax advantages, investing in ISAs at the start of the year when they tend to be more profitable or checking for any capital gains tax liability before cashing an investment.

However, if you find the prospect of tax planning and minimising tax liabilities a little too hot to handle, then why not speak to the accountants at Steven Glicher? With our expert help we can complete a thorough tax planning review and ensure that you make the most of all the available tax-free allowances and only pay what you are legally obliged to.

For further information on our tax planning services, contact Steven Glicher accountants on 0161 485 8007 or email info@stevenglicher.co.uk.

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