Comment from IFA Promotion on Tax Credit Debacle

Confidentially search for details of an independent financial tax advisor close to where you live or work from around 9,000 IFA locations UK-wide.

22 June 2005: Almost two million British families are suffering as a result of the Government’s claw-back of £1.9 billion* it has over paid in tax credits.  But, whilst many families are struggling as a result of the tax credit debacle, research** from IFA Promotion, the organisation that promotes the benefits of independent financial advice, shows that an astonishing £1.1 billion is being wasted annually by people failing to claim the tax credits they are entitled to.

The Inland Revenue estimates that the weekly tax credit allowance per family is an average of £51.35.  With 10% of families failing to claim what is owed to them, a massive £745 million goes to waste each year.  A further £351 million is also being squandered by up to 6% of pensioners failing to claim their entitlement.

David Elms, Chief Executive of IFA Promotion, comments, “Many people are unhappy with the Government’s overpayment of tax credits, however, it is frustrating to see that whilst no one likes paying tax, as a nation we are throwing away millions of pounds each year by failing to claim tax credit entitlements.  By taking some simple steps and with the help of an independent financial adviser, we could reduce the mountain of waste.”

www.taketaxaction.co.uk

* Source: Parliamentary Ombudsman

** TaxAction 2005 was produced for IFA Promotion by RAKM, and is partly based on a specially commissioned analysis of Inland Revenue data, combined with other sources such as the Family Resource Survey.

For further information please contact:

David Elms                                               Richard Winder/Ali Richardson

Chief Executive                                        Lansons Communications

IFA Promotion                                          020 7294 3641 / 020 7294 3679

020 7833 3131

    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 9,000 firms of independent financial advisers across the UK and is sponsored by 30 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

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