Could You Pay Less Tax?

Now that the 31 January deadline has now passed, most UK tax payers will have filed their self assessment tax returns and settled their income tax liabilities for the previous year.

When individuals make their tax payments, there is always the seed of doubt – “have I paid the right amount of tax or could I have paid less?”

Recent Headlines

“Billions wasted on unnecessary tax payments.”

“Unmarried cohabiting couples losing out on £82 million.”

Numerous press reports recently have indicated that British tax payers will lose £4.6 billion this year by failing to use up available tax allowances and reliefs.

Average tax paying individuals throw away around £160 per year each in unnecessary tax payments through areas including:

• Unused ISA allowances.
• Minimal, sparse or even non-existent pension contributions.
• Failure to make tax relief claims on gift aid payments.
• Not claiming sufficient tax relief on business mileage.

Further research shows that unmarried cohabiting couples are losing substantial sums each year in bereavement benefits including lump sum bereavement payments, bereavement allowances and widowed parent’s allowance.

Unmarried cohabiting couples also run the risk of getting caught for inheritance tax – which would otherwise be exempt if they were married.

Planning and Review

If you have any questions or concerns about the above, or any other potential tax savings, contact your local Perrys branch to review your circumstances.

Article written by Declan McCusker