£4bn wasted despite it being 'Tax Freedom' day

28 May 2014

Today may mark Tax Freedom Day - the point at which you've earned enough income to pay off your annual tax burden - but Brits are still handing over £4 billion in tax more than they need to.

Collectively, UK taxpayers pay out £4.7 billion in unnecessary tax to HMRC by not making the most of tax relief or tax-saving products – that's an average of £161 per person.

The research compiled by financial advice network unbiased.co.uk also found that £2.9 billion was set to be wasted by those not using tax relief, £1.1 billion by people failing to make the most of their Isa allowances.

Meanwhile, some £350 million will be wasted in inheritance tax and £154 million will go to the taxman via capital gains tax.

Three-quarters of people (75%) admit they have done nothing to reduce their tax waste in the past 12 months and only 38% would be confident in organising their tax planning without the help of a financial adviser.

A spokesperson for Unbiased said: "Tax Freedom Day may be a notional date in the calendar but our research shows, when it comes to tax, people could be doing much more for their own financial benefit if they looked closely at their savings and investments.

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