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TAXPAYERS COULD RECOUP HALF OF 8 BILLION NATIONAL INSURANCE HIKE BY STAMPING OUT UNNECESSARY TAX

 

 

       Higher rate taxpayers worst hit by 1% tax hike and by 4 billion tax waste

           Visit www.taketaxaction.co.uk to see how you could save tax

With this Sunday’s 1% rise in National Insurance Contributions (NICs) set to squeeze a further 8 billion out of UK taxpayers, IFA Promotion is urging people to ‘recoup’ half of this tax loss by making their finances more tax-efficient.  According to IFA Promotion’s TaxAction 2003 investigation*, nine out of ten UK adults will waste 4 billion this year in unnecessary tax, equating to an average 114 per person, and based on the past year’s analysis - over half (54%) of this waste will occur amongst higher rate taxpayers.

Previously there has been a limit on the amount of earnings which are subject to National Insurance. This earnings ceiling is currently 30,940.  However, from Sunday National Insurance for employees will increase by 1% to 11% of earnings up to the ceiling, then anything above this level will be subject to NI at a flat rate of 1%, with no limit.     

David Elms, Chief Executive of IFA Promotion, said, “For the first time all taxpayers will bear the brunt of national insurance contributions across their entire earnings, since this 1% increase has no ceiling.   We hope this tax hike will at least act as a spur for those affected to look at how they could be saving tax, especially higher-rate taxpayers, since most of the nation’s needless 4 billion tax wastage occurs amongst this group.”

As a first step to stamping out this tax waste, IFA Promotion has a dedicated website at www.taketaxaction.co.uk.  The site gives tips on how to save tax, a guide to download and a calculator to give an idea of how much people could be saving.  Details of local IFAs are available on the site or by calling 0800 085 3250.

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For further information, please contact:

David Elms                      or        Richard Winder/ Liz Willder

Chief Executive                            Lansons Communications

IFA Promotion                              Tel 020 7490 8828 lizw@lansons.com

Tel: 020 7833 3131                                             

For expert comment or case studies from over 160 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 28 leading financial institutions.  In 2002, over 300,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion’s believes Independent financial advice should be:

 

 Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

 Convenient. IFAs should be available in the location of the consumer’s  choice,  wherever they live in the UK.

   Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

 

2.                                Independent Financial Adviser Promotion’s sponsors

 

AMP NPI	Norwich Union Life
AXA	Old Mutual Asset Managers
Barclays Global Investors Funds	Prudential
Bright Grey	Scottish Equitable Plc
BUPA	Scottish Life
Canada Life	Scottish Mutual Assurance Plc
Children’s Mutual	Scottish Provident
Clerical Medical Investment Group	Scottish Widows Plc
Eagle Star	Selestia
Friends Provident	Standard Life Assurance Company
GE Life	Swiss Life (UK) Plc
INVESCO Fund Managers Ltd	Skandia UK Group
Legal & General	Winterthur Life UK Ltd
National Savings & Investments	Zurich Life Assurance Company