According to new figures revealed recently, UK taxpayers will pay more tax than is due in 2012.
The recent statistics, revealed in a report by Unbiased.co.uk, the Tax Action Report shows that an average amount of £421 will be overpaid by taxpayers in the UK, with an annual figure of £12.6 billion. The website also reveals that the amount of tax overpaid in 2012 is the second highest, with the 2011 figure being the highest, standing at £13.5 billion.
The figures in the report also indicate that a “tax waste mountain” has been formed over the last decade, amounting to £88.6 billion, with 2011 collecting the highest figure of overpaid tax. There are many areas where tax is being overpaid, from tax credits that aren’t being claimed to inheritance tax.
Unclaimed income related benefits amount to £7.26 billion, £997 million accounts for not claiming tax relief on charitable donations, £2.45 billion will be wasted as people don’t maximise the benefits of tax relief on pension contributions. Failing to maximise savings which are tax free, unused tax allowances and not claiming child benefit are other areas where large amounts of revenue are wasted. Late filing penalties account for a huge contribution to the Treasury coffers, standing at £307 million.
Half of the respondents consider themselves to be as tax efficient as possible, while just over a quarter don’t know how to become more tax efficient. The chief executive of unbiased.co.uk, Karen Barrett advises taxpayers to seek the advice of a tax expert or low cost accountant to minimise tax bills.