Unbiased Shows Record Amount Of Unnecessary Tax Being Paid

Unbiased Shows Record Amount Of Unnecessary Tax Being Paid
Britons are wasting billions of pounds in unnecessary tax
payments, a new set of research shows.

In the latest TaxAction study carried out by Unbiased it
was revealed that over the course of this year a total of
9.3 billion pounds will be frittered away by the public in
tax payments. Such a figure represents an increase of about
1.4 billion pounds from data recorded in 2007. Furthermore,
it is also the highest total amount of tax being wasted
since the firm began its research over a decade ago.
Figures from the firm also indicated that payments on
inheritance tax (IHT) which could be avoided are to surge
by more than 360 million pounds during 2008 to stand at 1.9
billion pounds. In addition, IHT is the most resented tax
for a fifth of consumers.

Due to making such unnecessary repayments on tax, it may be
possible that consumers are struggling to meet other areas
of demand on their spending. Such areas could include
loans, mortgage repayments, utility bills and plastic card
debts.

Overall, an estimated 34 million Britons state that they
are unhappy with the current tax system. If able to ask
Alistair Darling, the chancellor of the exchequer, any
question some 31 per cent of respondents state they would
request income tax to be modified. However, the research
also showed that more than four-fifths (82 per cent) of
people claim that they are not taking any steps to reduce
the impact of tax on their finances.

David Elms, chief executive of Unbiased, said: "Our
TaxAction report is now in its 16th year but the message
remains the same - UK taxpayers are wasting record sums in
unnecessary tax payments. And our report shows that 2008
will be no different. We estimate that each UK tax payer
will waste an average of over 290 pounds in tax payments
this year.

"We have seen a lot of talk about stealth taxes and IHT but
our figures prove that it hasn't changed the way people
deal with this tax and too much money is still being wasted
- and practically gifted to the taxman. A somewhat
surprising result, given the large amount of people who are
dissatisfied with the current tax system."

The study also showed that those living in London and
surrounding areas are losing out on the most money via
unnecessary taxation. People from Greater London were
revealed to be shelling out 782 million pounds in avoidable
tax, with this rising to 896 million pounds for residents
in the rest of the south-east of England. On the other
hand, consumers in Northern Ireland and the north of
England are wasting 165 million and 241 million pounds
respectively.

Whether consumers are worried about how much tax they are
paying or are concerned about their capacity to meet
household bills, applying for a cheap loan may be of
assistance to many. By taking out a loan, borrowers could
find that they are able to supplement spending effectively.
And with talk of a recession on the horizon a cheap loan
might help many Britons. A recent Fool study showed that
just under a fifth (17 per cent) of people think the
country is already facing economic downturn, with 74 per
cent claiming that they will have to modify their spending
habits to protect themselves against a monetary slump.

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