Taking Action Advised For Those Looking To Manage Tax Payments

Stopping complaining and starting to take action could be an advisable message for those looking to get to grips with their finances, following the results of a new study.

In research carried out by Unbiased it was shown that a record amount of unnecessary tax is set to be paid by Britons over the course of this year. As part of the firm’s ongoing Tax Action report it was stated that about 9.3 billion pounds will be frittered away in 2008. Such a figure represents an increase of 1.4 billion pounds from last year’s then-record. Meanwhile, 360 million pounds is to be wasted in unnecessary inheritance tax (IHT) payments. The study also showed that just under a third (31 per cent) of Britons would ask for the income tax system to be modified, if they could send Alistair Darling, the chancellor of the exchequer, any one message.

However, in spite of such discontent there appears to be a great deal of apathy remove among members of the public towards lessening the impact of tax. Some 82 per cent of consumers were indicated as failing to take any action in lessening the burden of taxation.

And by paying more tax than is necessary it may be possible that consumers find that they are developing further problems in meeting various financial demands such as home loans, credit and store cards, mortgages and household bills.

The study also indicated that those living in the south-eastern part of the country could be placing themselves under the most financial pressure. Consumers from the Greater London region were indicated as wasting away 782 million pounds in avoidable tax payments each year, with this rising to 896 million pounds for people resident in the rest of the south-east. These two regions were also shown to be Britain’s biggest victims when it comes to being forced to shell out money due to tax errors. On the other hand, consumers in the north of England and Northern Ireland are paying out 241 and 165 million pounds respectively as a result of tax repayments which could have been avoided.

David Elms, chief executive of Unbiased, said: “Our TaxAction report is now in its 16th year but the message remains the same - UK taxpayers are wasting record sums in unnecessary tax payments. And our report shows that 2008 will be no different. We estimate that each UK tax payer will waste an average of over 290 pounds in tax payments this year. We have seen a lot of talk about stealth taxes and IHT but our figures prove that it hasn’t changed the way people deal with this tax and too much money is still being wasted - and practically gifted to the taxman. A somewhat surprising result, given the large number of people who are dissatisfied with the current tax system.”

For consumers struggling to keep on top of the various constraints on their spending, taking out a loan might be of assistance. In doing so, borrowers could find that they are able to fund property repairs and pay credit card bills quickly and effectively. Meanwhile, a loan might be of help to those looking to get their money management under control. By using it as a means of debt consolidation, a loan might help borrowers to merge money owed across a number of sources into a single low-cost monthly repayment. Earlier this year, James Falla, director of Thomas Charles, advised consumers wishing to keep better track of money management to create a budget charting what areas their money goes towards on a regular basis.

Loan Arrangers providing you with breaking loans & finance news.