Tax Rebates & Refunds

£9 billion a year wasted in unnecessary tax payments

March 23, 2010
Posted in Income Tax — Written by The Entitlements Agency

Did you know that we waste as much as £9 billion a year by paying to much tax?

That’s the startling figure according to unbiased.co.uk.

Common mistakes we make are not checking our tax code, not taking advantage of tax credits and tax reliefs and not utilising the various tax free savings schemes available to us.

For example, if you’ve been assigned an emergency tax code by your employer for whatever reason then you are almost certainly paying too much income tax and you can claim it back.

The same applies if you have worked for only part of the year – you may not have even reached the threshold for paying tax but you will have paid at least some out. It’s well worth checking as that’s YOUR money.

Tax Free Saving

One of the best ways to avoid paying tax is to put your savings into a tax free savings scheme, such as an ISA.

From April 6th 2010 you’ll be able to save £10,200 (currently £7,200), of which £5,100 (currently £3,600) can be cash, in a tax free ISA. That means you can safeguard the interest earned from being taxed.

There are other options too, including National Savings & Investments, Venture Capital Trusts and Enterprise Investment Schemes.

It’s worth looking into these to see which ones would suit you best.

Act Now

The first thing you should do though, is check your tax code is correct and see if you are due a tax rebate. You can go back as far as six years as well, so don’t think you’ve missed out on previous years.

Use our free Income Tax Rebate calculator to see if you may be due a tax refund and if you think you are download a claim form here or contact us so we can send one out to you.

1 Comment (Leave comment »)
  1. [...] £9 billion a year wasted in unnecessary tax payments | Tax Rebates & Refunds [...]

    Pingback by Will you support Congressman Rangel’s Tax Bill which would make the Tax Code Simpler & Fairer? | Mspratings.com — April 9, 2010 at 11:18 am

Comment RSS | TrackBack URL

Leave a comment