Money Saving March: Paying Too Much Tax?

According to Independent Financial Advice Promotion (IFAP), there are 4 main ways in which people are missing out on tax breaks, and end up paying too much tax:

  • Failing to claim tax credits they are entitled to.
  • Forgetting to make simple IHT planning steps, such as writing life insurance into trust.
  • Non-taxpayers failing to claim back tax deducted from interest on savings.
  • Self assessment taxpayers missing the 31 January deadline for submitting their returns and automatically triggering £100 fine.

According to their recent press release, U.K. adults will waste £7.6 billion in tax this year. They’ve put together a new website, Take Tax Action, which includes a calculator to discover how much you might be wasting in tax, and also ten ways to save tax. These include:

  • If you save: use up your annual ISA allowance
  • If you are eligible: claim your tax credits
  • Maximise your personal tax allowances
  • If you have assets over £275,000: plan your inheritance

Are you guilty of paying too much tax?

This post forms part of the Money Saving March series.

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