5.5 Million People In Greater London Pay £812 Millon In Unnecessary Tax That’s An Average Of £148 Per Person
25 April 2006
5.5 Million People In Greater London Pay £812 Millon In Unnecessary Tax That’s An Average Of £148 Per Person
Visit www.taketaxaction.co.uk for IFA Promotion’s top ten tax-saving tips
Nine out of ten taxpayers in Greater London – 5.5 million people* - will pay £812 million in unnecessary tax this year, according to research from IFA Promotion, as many people are failing to manage their tax affairs efficiently.
IFA Promotion, the organisation that promotes the benefits of independent financial advice, surveyed people in Greater London and found that seven out of ten** have seen their tax burden rise over the last year. Whilst the majority of these people 89% resent the rise, nearly three quarters (74%) admit to taking no action whatsoever to limit the amount of tax they pay.
In London the three most resented taxes are inheritance tax and stamp duty on home purchase equally, and petrol duty. Perhaps surprisingly, the congestion charge was almost bottom of the capital’s list of resented taxes. Yet at the same time, the average individual tax waste in the region is £148 per taxpayer, and for many higher rate taxpayers, the waste is much higher.
Just a few simple measures could help stamp out a great deal of the wastage, says IFA Promotion, which has launched a website to help people to stop squandering tax: www.taketaxaction.co.uk.
David Elms, Chief Executive of IFA Promotion, said, “The sheer lack of understanding about how to make the most of tax breaks, credits and reliefs has resulted in nine out of ten people in London unnecessarily wasting too much of their hard-earned cash. No one likes paying tax, yet too few people do anything about it. Sitting down with an independent financial adviser is a great place to start.”
Here’s how London compares with the other regions:
TaxAction 2005: The Waste by Region
|
Region |
Total waste (£m) |
Waste per head (£) |
Tax wasters (millions) |
% of people wasting tax |
|
Greater London |
812 |
148 |
5.5 |
89 |
|
Rest of South East |
875 |
137 |
6.4 |
90 |
|
East Anglia |
369 |
97 |
3.8 |
88 |
|
South West |
373 |
104 |
3.6 |
90 |
|
Wales |
252 |
120 |
2.1 |
88 |
|
East Midlands |
359 |
116 |
3.1 |
91 |
|
West Midlands |
424 |
115 |
3.7 |
88 |
|
North West |
466 |
97 |
4.8 |
87 |
|
Yorkshire/The Humber |
414 |
115 |
3.6 |
88 |
|
North |
156 |
82 |
1.9 |
91 |
|
Scotland |
343 |
90 |
3.8 |
93 |
|
Northern Ireland |
95 |
79 |
1.2 |
92 |
|
Whole of UK |
5,666 |
133 |
42.4 |
89 |
Note: sums are quoted with precision but there is some rounding of underlying amounts and percentages, which render them approximate; they may not always add to totals due to the effect of this rounding
Source: RAKM for IFA Promotion
Elms concluded, “We're urging people to take some simple measures to minimise the mountain of waste. You can often make a big difference with very little effort, such as claiming credits and reliefs that are rightfully yours. Discussing your financial planning situation with a local independent financial adviser should also help cut your waste considerably.”
As a first step to stamping out this waste, people can visit IFA Promotion’s dedicated website at www.taketaxaction.co.uk The site contains tips on how to save tax, an online tax wastage calculator, and a guide to saving tax, packed full of useful information. People can also find details of local IFAs who can help you plan your finances tax efficiently on the site or by calling 0800 085 3250.
-ends-
For further information please contact:
David Elms Ali Richardson
Chief Executive Lansons Communications
IFA Promotion Tel: 020 7490 8828 / alexandrar@lansons.com
Tel: 020 7833 3131
* Source: IFA Promotion’s TaxAction 2005 report prepared by independent research analysts, RAKM, February 2005.
** Source: Consumer survey conducted for IFA Promotion by YouGov, amongst 1,819 people from 15th–18th February 2005.
For expert comment or case studies from over 200 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 around 10,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In 2004, over 440,000 consumers and businesses used IFA Promotion to find local independent financial advice.
IFA Promotion 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
|
Abbey |
National Savings & Investments |
|
AXA Life |
New Star Investment Funds |
|
Bright Grey |
Norwich Union Life |
|
BUPA Health Services |
Old Mutual Asset Managers (UK) |
|
Canada Life Ltd |
Prudential |
|
The Children’s Mutual |
Scottish Equitable Plc |
|
Clerical Medical Investment |
Scottish Life |
|
DWS Investments Ltd |
Scottish Life International |
|
Friends Provident |
Scottish Widows Plc |
|
GE Life |
Selestia Investments Ltd |
|
GMAC Residential Funding |
Skandia UK Group |
|
INVESCO Fund Managers Ltd |
Southern Pacific Mortgage Limited |
|
Legal & General |
Standard Life Assurance Company |
|
London Mortgage Company |
Webline Limited |
|
Lincoln Financial Group |
Zurich IFA Group |
|
Mortgage Express |
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