Brits bemoan ‘rising' tax burden but take no action to lighten the load

Ahead of this year's Budget, research from Unbiased.co.uk, the professional advice website, reveals that just 16% of UK adults feel their tax burden is "fair", but four out of five (81%) admit they have done nothing to reduce the amount of tax they pay this year.

And whilst the nation focuses its resentment on everyday duties such as Council Tax, the TV licence fee and fuel duty, the public will together waste £10 billion in tax this year through poor financial planning. This record level of waste includes everything from unused ISA allowances and self assessment fines to unclaimed credits and pensions tax relief.

More than a quarter of adults (26%) expect to pay more tax this year than last, and just one in ten (10%) expect their tax burden to ease. However the research reveals a widespread sense of ‘helpless acceptance' and inertia when it comes to our tax burdens. 60% of consumers say they feel powerless to improve their own situation, and one in four people (26%) that believe the Government alone controls how much tax they pay.

This year's Unbiased.co.uk Tax Action consumer survey also found that:

Six out of ten (60%) adults brand their tax burden "unfair", with resentment highest among respondents aged 35-54.

The average amount people in the UK believe they pay in tax is 33 pence for every pound that they earn, up 3 pence on last year.

When pinpointing people's specific grievances, more than half (55%) said the current system is unfair because taxes are increasing but you cannot see where the money goes, and 52% said they feel the Government increases tax through stealth rather than transparently. 23% say our tax system is simply too confusing

Those in London, Wales and south west England have taken most action to improve their tax situation in the last 12 months, while those in northern England have taken least action.

Of those that have taken steps to reduce their tax payouts, nearly half (47%) have changed the way they invest and save, and one in five say they have talked to an independent financial adviser.

David Elms, Chief Executive of Unbiased.co.uk said: "It's worrying that so many people feel powerless to reduce their tax burden, when there are so many ways to make a difference. The one in four people relying on the Chancellor to announce tax cuts should prepare for disappointment given the current state of the economy.

"Tax can seem a complex issue but in the current climate, it is more important than ever for people to look after their finances and not pay out more than they should to the taxman. As we have now entered a new tax year, now is the time to take tax action and review your finances. Seeking independent financial advice is the first step to taking control of your tax efficient financial planning - an IFA can assess your entire financial position and ensure you are being as tax efficient as possible."

Unbiased.co.uk's annual Tax Action report reveals that British taxpayers will waste over £10 billion in unnecessary tax in 2009. The amount of tax wasted through poor financial planning will increase by £700 million in 2009 compared to 2008, amounting to the highest ever wastage since Unbiased.co.uk's campaign began 17 years ago.