Average taxpayer overpays £421
Taxpayers are collectively wasting £12.6 billion on tax payments that could be easily avoided, according to the annual Tax Action report by financial advice group unbiased.co.uk.
More than £7.2bn of that wastage is in unclaimed tax credits. Another £2.45bn is handed over unnecessarily because of a widespread failure to make use of tax relief on pensions contributions, while almost £1bn in charitable contributions needlessly finds its way into the revenue’s coffers.
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Hide AdAnd with just over a month to use up the 2011/12 individual savings account (Isa) allowance, the report reveals that savers lose out on £403 million a year by failing to take full advantage of the tax-free products.