Tax Beating for the new year, to reduce your burden of taxation
United Kingdom of Great Britain & N. Ireland (Press Release) January 15, 2008 --
IFA Promotion, (the body promoting Independent Financial Advice) estimates that four out of five of UK adults collectively waste a staggering £7.9bn in excess tax each year.
''It's hard to say whether we are disengaged or just confused as to why people across the UK are still throwing away billions in tax every year,'' says David Elms, chief executive of IFA Promotion. ''Simple steps such as filling out a self-assessment form correctly, making a will and taking full advantage of your tax credits, could help the UK pocket this wasted cash.'' If you want to reduce your tax bill, we will go through our top ten tax-busting tips.
1. If you have assets over £300,000, plan your inheritance.
IHT is often lost through not writing life assurance policies in trust, not thinking about inheritance tax allowances and not making a will.
2. If you save, use up your annual ISA allowance. Also consider a Friendly Society savings account or products from National Savings & Investments as tax-efficient savings options.
3. Claim your tax credits; £2.3bn of 'free money' is up for grabs from HMRC and the DWP, in the form of Pension Credits, Child Tax Credits and Working Family Tax credits.
4. Sort out your self-assessment to avoid the initial £100 penalty.
5. Maximise your personal tax allowances; £546m goes begging each year, £322m through nontaxpayers failing to claim tax back on banks and building society savings accounts, and a further £224m by taxpayers not transferring savings accounts to nontaxpaying spouses, if appropriate.
6. Top up your pension pot; £739m could be spared by optimising contributions to personal or company pension schemes.
7. If your employer offers an employee share plan, take advantage of it.
8. If you have capital gains, use your allowance efficiently, perhaps by transferring assets between spouses to make the most of both of your CGT allowances.
9. If you give to charity, £1bn more could go to good causes by using tax-efficient means of charitable giving.
10. If your child or grandchild is eligible for a child trust fund, use up the tax free saving potential.
What could you buy with £7.9bn?
Every female between 16 and 64 could own a pair of Gina shoes (Gina shoes: £395)
''It's hard to say whether we are disengaged or just confused as to why people across the UK are still throwing away billions in tax every year,'' says David Elms, chief executive of IFA Promotion. ''Simple steps such as filling out a self-assessment form correctly, making a will and taking full advantage of your tax credits, could help the UK pocket this wasted cash.'' If you want to reduce your tax bill, we will go through our top ten tax-busting tips.
1. If you have assets over £300,000, plan your inheritance.
IHT is often lost through not writing life assurance policies in trust, not thinking about inheritance tax allowances and not making a will.
2. If you save, use up your annual ISA allowance. Also consider a Friendly Society savings account or products from National Savings & Investments as tax-efficient savings options.
3. Claim your tax credits; £2.3bn of 'free money' is up for grabs from HMRC and the DWP, in the form of Pension Credits, Child Tax Credits and Working Family Tax credits.
4. Sort out your self-assessment to avoid the initial £100 penalty.
5. Maximise your personal tax allowances; £546m goes begging each year, £322m through nontaxpayers failing to claim tax back on banks and building society savings accounts, and a further £224m by taxpayers not transferring savings accounts to nontaxpaying spouses, if appropriate.
6. Top up your pension pot; £739m could be spared by optimising contributions to personal or company pension schemes.
7. If your employer offers an employee share plan, take advantage of it.
8. If you have capital gains, use your allowance efficiently, perhaps by transferring assets between spouses to make the most of both of your CGT allowances.
9. If you give to charity, £1bn more could go to good causes by using tax-efficient means of charitable giving.
10. If your child or grandchild is eligible for a child trust fund, use up the tax free saving potential.
What could you buy with £7.9bn?
Every female between 16 and 64 could own a pair of Gina shoes (Gina shoes: £395)
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