Isa inertia costing consumers cashMillions of pounds of unneccesary tax being paid
03 February 2009
Research by unbiased.co.uk shows that Britons are wasting hundred of millions of pounds in tax by not putting their savings and investments into a tax-efficient savings account.
The professional advice website found that £165 million is being paid out in unnecessary tax a result of savings which belong to individuals that do not make use of their cash Isa allowance.
A further £98 million is paid out by shareholders who do not transfer their holdings into an equity Isa.
April 5th 2009 is the deadline for individuals to contribute up to their annual limit (£3,600 for cash Isas; £7,200 for equity Isas) for this tax year.
After this date, any unused 2008/2009 Isa allowances will be lost, so see our Isa Best Buy tables for where you can invest for the best rates in a poor savings climate.
Other ways you can save on your tax bill include: filing your tax return before the deadline to reduce fines and delays, (see our guide on how to do that) optimising contributions to personal or company pension schemes or ensuring you make use of your tax credits.
Maximise your personal tax allowances. It's estimated that £474 million goes begging each year, £330 million through non-taxpayers failing to claim tax back on banks and building society savings accounts
A further £144 million is lost by taxpayers not transferring savings accounts to non-taxpaying spouses, if appropriate, so that the tax liability on the savings is lower, or none.
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