Plan your taxes. Save £133 every year |
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Published
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Tue, 15 Mar 2005 01:00
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A recent survey on our spending habits may prove to be not just an eye-opener but also a money saver. According to the report, more than 43 million adults in the UK (that’s nearly nine out of ten people) will waste £5.7 billion this year in unnecessary tax.
That averages out to £133 per taxpayer! No small amount by any means. The study was commissioned by IFA Promotion, and some of UK’s leading independent financial advisors as part of the thirteenth annual TaxAction investigation.
| Good money is lost by poor tax planning, e.g. inheritance tax, something most of us resent paying, takes away an astonishing £1.6 billion a year through poor inheritance planning. Additionally, each year, the average tax payer fritters away £133 in unused tax breaks, unclaimed credits, revenue fines and reliefs. Those in higher tax brackets waste even more.
Although, a huge majority of us (60 percent) resent paying our tax bills, few of us actually and unfortunately, do anything to find a remedy (a legal one of course).
A senior executive of the IFA said “Rather than fritter away our hard-earned money, we must plan our inheritance. You will be surprised by the huge sums that you end up saving each year.” There are indeed ways by which we can limit the amount of tax we pay each year.
The responsibility of managing our tax affairs rests with us. So we must certainly do what little we can to squeeze out the extra bucks through tax planning. It doesn’t require the brains of a Sherlock Holmes to deduce what can be done to save money. Here are a few tips from the IFA promotion’s survey telling you what you could do with the £133 that you currently waste on tax:
1. Buy a mobile phone contract for a year (£132).
2. Buy a ticket to the men’s speed skating event at the 2006 Winter Olympic Games, Torino (£133).
3. Send someone special three bunches of a dozen long-stem roses (£132).
Let’s not forget, we are wasting enough money together. That kind of money could create a new millionaire every day for the next fifteen years. So why don’t we start saving with smart tax-planning and work our way towards becoming millionaires ourselves?
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