22 July 2008

Look Out Brown - The UK is Watching Your Tax Policies

• For two thirds of the UK, tax policies are a deciding factor when voting
• One in fourteen UK adults claim that tax policies are their main motivation for voting
• 35 million  adults (72 per cent)   are dissatisfied with the current tax system

Research* from Unbiased.co.uk has revealed that, for two thirds (65 per cent) of Britons, tax policies are a deciding factor when voting and for one in fourteen (7 per cent) it is their main reason for voting for a political party at all. 

And it seems Gordon Brown and Alistair Darling have something to worry about with the majority (72 per cent) of Brits saying they are frustrated with the current tax system. 35 per cent of people claim the reason they are so unhappy with Darling’s tax system is that they can’t see where there money is going whilst 19 per cent think that the government just can’t get it right.

Darling’s recent announcement of postponing a fuel duty increase until March could prove popular with British voters as almost half (45 per cent) of UK adults said this was their most resented tax. This was followed by Council tax which 42 per cent stated was their most resented tax.

David Elms, Chief Executive of Unbiased.co.uk comments “Our research reveals that although so many consider tax policies when voting, as many as 82 per cent admits that they have not taken any steps to try and reduce the amount of tax they pay. The irony is that many people are needlessly wasting their money on paying existing taxes due to a lack of understanding and guidance.

“No one likes paying taxes and this is evident with such a large number of us saying that we are dissatisfied with the current tax system. The onus is, more than ever, on the individual to get their financial affairs in order. When it comes to tax, there are a number of simple steps people can take to reduce the amount the Chancellor takes from them.  Time spent filling in a form, or making a will, or ensuring savings are invested efficiently in an ISA, take relatively little time, but will probably be some of the most effective time you will spend this year. 

“People who want to reduce the amount they waste should visit an independent financial adviser who can show you how to become tax savvy with your finances.”

As a first step to stamping out this waste, visit Unbiased.co.uk’s dedicated website at www.unbiased.co.uk/taketaxaction.  The site contains tips on how to save tax, an online tax wastage calculator, and a guide to saving tax. You can also find details of local IFAs on the site

-ends-

*Research conducted online by Opinium Research LLP among a sample of 3,048 UK adults between 7^th and 14^th February 2008.  Data has been weighted to nationally representative criteria. www.opinium.co.uk

** 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

 

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.

For further information please contact:

David Elms	Anna Schirmer/Jennifer Comerford
Chief Executive	Lansons Communications
Unbiased.co.uk	020 7294 3682
020 7833 3131

 

For expert comment or case studies from over 200 media-friendly IFAs, journalists should visit www.unbiased.co.uk/bluebook to search online or call Unbiased.co.uk’s Media Services hotline on 020 7294 3682.

1.      Unbiased.co.uk

Unbiased.co.uk (IFA Promotion) is a not for profit organisation which promotes the benefits of Independent Financial Advice to UK consumers.  Over the past 12 months, over 575,000 consumers have used Unbiased.co.uk’s confidential ‘Find an IFA search’ to find local member IFAs - 94% of these enquiries are now dealt with online.

Unbiased.co.uk, which is in its 19^th year, creates over 6,000 pieces of positive coverage in the consumer media each year, highlighting the importance of seeking independent financial advice across online, broadcast and print media. This positive media generation influences consumers’ behaviour and increases their awareness of the benefits of seeing an IFA.

Unbiased.co.uk is now positioned as the online gateway between consumers researching their financial advice options and member IFAs. Over 60 white label versions of Unbiased.co.uk’s ‘Find an IFA’ service are now running on partner  websites including those of media and portal money channels, product provider sponsors and other industry bodies.

When searching for a ‘Find an IFA’ on UK Google, around 80% of the returned links over the first five pages of search results now display either Unbiased.co.uk directly or a white label version of Unbiased.co.uk’s ‘Find an IFA’ service running on a partner website. To support this activity Unbiased.co.uk now regularly provides white label versions of its consumer guides, tools, microsites and podcasts to partner personal finance websites.

 

2.      Unbiased.co.uk’s product provider sponsors

Abbey for Intermediaries	Lincoln Financial Group
Aberdeen Asset Management	Lutine Assurance Services
AEGON Scottish Equitable Plc	MetLife
Alliance Trust	National Savings & Investments
AXA Life	New Star Investment Funds
Bright Grey	Norwich Union Life
BPP	Prudential
Canada Life Ltd	Scottish Life
Cardif Pinnacle	Scottish Life International
The Children’s Mutual	Scottish Widows Plc
Clerical Medical Investment	Skandia UK Group
Defaqto	Standard Life Assurance Company
Friends Provident	Tomorrow
The Hartford	Unum
Invesco Perpetual	Zurich Intermediary Group
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Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606

 

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