UK Taxpayers Unwittingly Miss Out on Tax Credits

July 25, 2012 Taxation in UK

Tax Returns in the UKLONDON – UK taxpayers are missing out on over GBP 12 billion per year in tax allowances when filing out their tax returns, due to oversights which should be simple to prevent.

On July 24th the independent advisory group Unbiased released a new report on tax credits available in the UK, showing that taxpayers are not recieving a cumulative GBP 12.3 billion in tax allowances every year because they have not applied to receive all of the tax allowances available to them or have not completed their tax returns correctly.

According to Unbiased, the most significant portion of the unclaimed tax benefits was income-related tax credits, which accounted for approximately GBP 7.23 billion of all wasted tax allowances. Approximately GBP 2.45 billion of available tax relief for pension contributions was also left unclaimed,and nearly GBP 1 billion of tax credits for charity donations was not claimed by taxpayers.

Commenting on the tax allowances, the chief executive of Unbiased Karen Barret said that all taxpayers in the UK need to take urgent action and determine their eligibility for tax credits before the filing deadline on July 31st. He emphasized that simple mistakes and omissions on tax declarations can jeopardize taxpayers’ eligibility to receive tax credits.

Taxpayers were also advised to file their tax returns on time in order to ensure that they do not face any late filing penalties, which are expected to reach a cumulative total of GBP 306 billion this year.

Photo by Images_of_Money

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