Sunday 31 May 2015 marks Tax Freedom Day1, which means that after 150 days of 2015, UK taxpayers will effectively be putting their wages into their own pocket, rather than paying it to the Treasury.
It has been calculated by the Adam Smith Institute that on Tax Freedom Day the average Briton will have earned enough money to cover all the National Insurance, VAT, fuel duty, and other taxes that they owe in 2015. This year’s Tax Freedom Day falls one day later than it did in 2014.
Vince Smith-Hughes, Head of Business Development at Prudential, comments: ‘Tax freedom day is a creative way to remind people about the importance of the tax contribution they make while also reminding them to take the appropriate steps to ensure they pay the right amount.’
Karen Barrett, chief executive of unbiased.co.uk comments: ‘Although Tax Freedom Day is only a theoretical point in the calendar, it does help remind people of the tax burden we all have to manage every year, and that we should be taking steps to keep this as low as possible. Our TaxAction research with Prudential has shown there are a number of tax breaks that people are entitled to, but are not taking advantage of, leading to a national tax wastage of over £4.9bn2.
‘There are simple steps you can take to ensure you are being as tax efficient as possible and bring forward your own personal Tax Freedom Day. Many UK taxpayers are saving money into taxed saving and investment products, when they could be making the most of substantial reliefs, allowances and better rates. There are clearly some tax payments that cannot be changed, but people should make sure they are not unnecessarily wasting their earnings, and use this day as a reminder to take action on their taxes.
‘Nearly three quarters of people (74%) said they have done nothing to reduce their tax waste in the past year, but by seeking professional advice, they could be seeing a real difference in their savings. A financial adviser or accountant will be able to inform you of all your options, and help guide you towards the products and allowances that are part of efficient and responsible tax planning. For a free and confidential search for a financial adviser or accountant, go to www.unbiased.co.uk.’
The nation’s tax wastage 2015 – the key statistics:
£2.9 billion in pension tax relief waste
£1.3 billion in ISAs
£550 million in inheritance tax waste
£158 million in capital gains tax
ENDS
Notes to editors:
For more information contact:
Anna Schirmer/ Sarah Tye/Calum MacDougall, Lansons: 020 7294 3682
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Category: Tax action Tagged: Inheritance Tax