Tax-talking UK

The hot topic of rising house prices is subsiding as Council Tax takes its place as the most talked about financial topic, with almost two thirds of people (65%) saying this is the most talked about issue with family and friends, according to the latest findings from Unbiased.co.uk.

The latest TaxAction report, which focuses on the UK’s tax wastage, sees Council Tax topping the financial discussion bill, closely followed by rising house prices and the so called ‘death duty’ (IHT).

However despite talking about ever-increasing taxes - over £7.9 billion is set to be wasted in 2007 - people are still not taking action with 74% admitting they do nothing to reduce the money they give to the taxman. This means UK adults are currently throwing away an average of £160each on tax in 2007, a rise of 68% in five years from £95 per person in 2002.

Tax - and its growing drain on UK households - is increasingly moving to the top of the individual’s agenda with personal tax levels soaring to a collective £149 billion, up from £40.5 billion over the past 20 years, for all UK adults.

Yet wasting this money – and trying to save it from the taxman’s grip - doesn’t even enter the personal finances debate for many people.

David Elms, Chief Executive of Unbiased.co.uk comments, “It’s no surprise that Council Tax is dominating discussion across the UK as people mentally prepare themselves for the probable increase of re-banding costs. However, while financial issues continue to be the ‘top topic’ of conversation with family and friends, the irony is that many people are still needlessly wasting their money due, to a lack of understanding and guidance.

“No one likes paying taxes and this is evident with as many as two thirds of us saying we resent rising taxes. The onus is, more than ever, on the individual to get their financial affairs in order, and when it comes to tax, there are a number of simple steps people can take to reduce the amount the Chancellor takes from them. Time spent filling in a form, or making a will, or ensuring savings are protected by an ISA, take relatively little time, but will probably be some of the most effective minutes you will have for a long time.

“Since we launched TaxAction fifteen years ago, we have seen a steady increase in the amount of tax we throw away. This year’s report shows we waste £7.9 billion, the highest since the campaign began. People who want to reduce the amount they waste should visit an independent financial adviser who can show you how to become tax savvy with your finances.

As a first step to stamping out this waste, visit Unbiased.co.uk’s dedicated website at unbiased.co.uk/taketaxaction. The site contains tips on how to save tax, an online tax wastage calculator, and a guide to saving tax. You can also find details of local IFAs on the site.