By failing to claim tax credits and use tax allowances, taxpayers are missing out on £12.6 billion each year, with the biggest area of waste being tax credits. This includes child tax credits, working tax credits and pension credits, which the report claims more than £7.26 billion went unclaimed in the last year.
Other big areas of waste are tax relief on pension contributions at £2.4bn, tax relief on charity donations at £2.4bn and making use of ISAs at £403m; whilst it is believed that up to eighty-five percent of taxpayers haven’t done anything in the last twelve months to reduce the amount of tax they pay.
The chief executive of the company behind the report, said following the findings: “Looking back at the last decade and the tax wastage figures in our reports, the numbers are just as shocking now as they were then.
“'The message is clear – tax affects pretty much every one of us, and with an average of £421 up for grabs for each taxpayer, we should take some time and effort to ensure that we are being as tax efficient as possible.”
In total, over the last decade, £88.6 billion is reported to have been handed unnecessarily back to the taxman.
For more information, please visit www.milsted-langdon.co.uk
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