Tax tips offered by financial advisers

Date: 20th October 2009

Financial advisers have offered their top tips on reducing tax burdens.

Industry views compiled by financial website Unbiased.co.uk suggested that millions of Britons are paying unnecessarily high amounts of tax due to their own poor financial planning.

Workers were recommended to take simple steps, such as checking that they are on the correct PAYE code and concentrating debt repayments on non tax-relievable borrowings.

The tax benefits of receiving higher rate relief on pension contributions, but only paying the basic rate on actual retirement income, were also highlighted.

Karen Barrett, chief executive of Unbiased.co.uk, commented: "Now is not the time for consumers to be complacent when it comes to their personal finances - yet as a country we continue to gift huge sums in unnecessary tax payments to the taxman."

She added: "Tax can seem a complex issue and especially in the current environment many people are nervous about making the wrong financial decisions."

Data from Unbiased.co.uk shows that 81 per cent of people do "nothing" to cut their tax obligation.

The website also suggested that Britons will waste around £10 billion in tax payments in 2009.