Britons Will Forfeit on Billions in Tax Credits

July 21, 2010 Taxation in UK

Some of the 100,000 free coinsUK taxpayers could miss out on an as much as GBP 3.9 billion worth of tax credits in the coming fiscal year, unless they take action now.

With only 10 days left ahead of the July 31st tax credit deadline, nearly one quarter of UK pensioners and a tenth of entitled low-income families are set to forfeit billions in “free money” by neglecting to make necessary claims with the HM Revenue & Customs (HMRC). According to estimates published by Unbiased, a UK online financial service portal, the missed credits will consist of GBP 1.5 billion in Child Tax Credits and GBP 2.4 billion in Pension Credits.

An estimated 9 percent of eligible families are expected to forgo their GBP 3,411 yearly household credit, despite recent changes announced in the Emergency Budget which restrict the benefits to some of the lowest earning families in the UK. The unclaimed figure represents a 1 percent increase over last year, when 8 percent of families ignored available tax credits.

The economic climate of the UK is still too tight for low-income families to ignore this fiscal opportunity. The current system of benefits has been created specifically with this group of the population in mind, and many are willfully missing out on huge quantities of money this year. Taxation experts have stated, however, that the HMRC should have delivered information packs and an Annual Renewal notice to applicable households with adequate time for taxpayers to respond or seek appropriate taxation advice.

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