Government Hijacking Green Agenda To Increase Taxes Says Consumers
- Almost three quarters (68%) of people believe the green agenda has been hijacked by the government as a way of increasing taxation
- Over half (53%) of people are not prepared to pay higher taxes even if they are spent exclusively on green issues
- Fuel prices are the most frequently discussed financial topic, by 63% of adults
Figures released* from Unbiased.co.uk, the website promoting the benefits of independent financial advice, show that almost three quarters (68%) of consumers believe the green agenda has been hijacked by the government as a way of increasing taxation.
Men are even more doubtful about the government’s ‘green’ motives than women, as a whopping 7 out of 10 men (73%) believe taxes are being camouflaged as green to persuade people to pay them. A mere 8% of people disagree that the green agenda has been hijacked.
The government may be fighting a loosing battle, as over half of people (53%) stated they would not be prepared to pay more on taxes even if they were only to be spent on green issues.
However all is not lost – almost a fifth of people (18%) stated they would be prepared to pay more taxes to reduce the level of CO2 fumes from motor vehicles and a further 15% of people would pay more taxes to ensure better litter collection in their area. Over one in eight (13%) people would be prepared to pay more taxes to offset carbon footprints from aeroplane fuel.
Despite the unwillingness of the majority of people to pay higher taxes for green issues, fuel prices are the number one financial issue in the public eye, with 63% of adults discussing these. Further green issues fall lower down the list, with airport taxes only being discussed by 12% of adults and congestion charge by 11%.
David Elms, Chief Executive of Unbiased.co.uk comments, “The onset of the credit crunch has affected everyone and consumers are tightening their purse strings in every way possible. Tackling green issues is probably high on most consumers’ wish lists, yet now more than ever they are not prepared to reach into their pockets to help contribute to the cause. The irony is that many people are needlessly wasting their money on paying existing taxes due to a lack of understanding and guidance.
“There are simple and easy ways through which people can reduce their tax wastage. Unbiased.co.uk’s sixteenth TaxAction report shows we currently waste a massive 9.3 billion** on taxes, the highest since the campaign began. By seeing an independent financial adviser you can get the best advice on how to avoid tax wastage and make the most out of your money. Plus, the money you save by becoming more tax efficient could allow you to be ‘greener’.”
-ends-
Tax doesn’t have to be taxing – Here are 10 basic ways** to claw back some of the waste:
- IF YOU HAVE ASSETS OVER 312,000: Plan your inheritance - an extra 1.9 billion could go to chosen heirs by planning properly to avoid IHT liabilities. IHT is often lost through not writing life assurance policies in trust, not thinking about inheritance tax allowances and, worst of all, by not making a will at all.
- IF YOU SAVE: Use up your annual ISA allowance - 263 million in tax could be avoided by sheltering investments in ISAs, or moving savings from an ordinary deposit or savings account to an ISA. Also consider a Friendly Society savings account or products from National Savings & Investments as tax-efficient savings options.
- IF YOU ARE ELIGIBLE: Claim your tax credits - 3.7 billion of ‘free money’ is up for grabs from HMRC and the DWP, in the form of Pension Credits, Child Tax Credits and Working Family Tax credits.
- IF YOU FILL IN A TAX RETURN: Sort out your self-assessment - 479 million waste could be wiped out by all forms arriving present and correct by the 31st January deadline. Self-assessment forms received after the deadline incur penalties of 100; further penalties and errors make up the balance of tax wasted in this way.
- ALL TAXPAYERS: Maximise your personal tax allowances - 474 million goes begging each year, 330 million through non-taxpayers failing to claim tax back on banks and building society savings accounts, and a further 144 million by taxpayers not transferring savings accounts to non-taxpaying spouses, if appropriate, so that the tax liability on the savings is lower, or none.
- IF YOU SAVE: Top up your pension pot - 726 million could be spared by optimising contributions to personal or company pension schemes, or making Additional Voluntary Contributions.
- IF YOUR EMPLOYER OFFERS AN EMPLOYEE SHARE PLAN: Take advantage of it - 184 million is up for grabs for the estimated 600,000 staff currently in Profit Related Pay schemes.
- IF YOU HAVE CAPITAL GAINS: Use your allowance efficiently, perhaps by transferring assets between spouses to make the most of both of your CGT allowances - 264 million could be saved in this way.
- IF YOU GIVE TO CHARITY: 936 million more could go to good causes by using tax-efficient means of charitable giving, i.e. using a deed of covenant, Gift Aid or payroll giving.
- IF YOUR CHILD OR GRANDCHILD IS ELIGIBLE FOR A CHILD TRUST FUND: Avoid waste by using up the tax free saving potential - 242 million in tax could be saved in their first yearof existence.
* Research conducted online by Opinium Research LLP from 7th-14th Feb 2008. UK nationally representative sample of 3.048 adults.
** TaxAction 2008 report produced for IFA Promotion by RAKM, based on a specially commissioned analysis of Inland Revenue and a range of other official data sources.
For further information please contact:
David Elms | Anna Schirmer/Jennifer Comerford/ Anna Moulds |
Chief Executive | Lansons Communications |
Unbiased.co.uk | 020 7294 3682 |
020 7833 3131 |
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