Are you “throwing away” tax?

As the end of the tax year approaches and a new one begins, you should take time out to review your tax affairs to see if you are being wasteful.

Recent research by Prudential and suggests that British taxpayers overpaid £4.6bn (yes, billion!) of tax last year.

The main areas where tax is wasted includes:

a.       Paying tax on savings account interest rather than utilising ISA’s.

b.      Not claiming tax relief on pension contributions and charitable donations.

c.       Not planning for inheritance tax either prior to death or post death.

d.      Not claiming the marriage allowance.

In addition, there are various other legitimate ways to save tax such as moving income sources between spouses, ensuring that all allowable expenses are claimed against income and making use of capital gains tax allowances.

The ever changing tax law makes it difficult for individuals to keep up with what allowances are available and this is the reason why many individuals take professional advice.

If you wish to seek professional advice then speak to a member of our tax team today. For Darlington call Alan Moore, Lee Watson or Alison Welch (01325 349700), for Durham call Nicola Bellerby or Alison Welch (0191 384 2244) and for York call Alan Moore or Graham Richardson (01904 784400).