Britons in the dark about tax allowances

Date: 14th March 2011

Britons are in the dark when it comes to tax allowances, according to new figures.

A recently-published report by HSBC has shown that a large number of UK workers have no idea how much of their earnings are tax free.

Data form the study revealed that 72 per cent of respondents are unaware that the current tax-free personal allowance for those aged under 65 years is £6,475.

The report also showed that a further 84 per cent do not know that the allowance will rise by £1,000 when the new tax year starts in April.

Richard Brown, head of savings at HSBC, commented: "It is essential that we are aware of the tax thresholds as this could make a big difference to the interest we earn on our savings and the tax we pay on our earnings.

"This is especially true for those on lower incomes or the older generation who could possibly reduce or escape altogether the tax they are currently paying."

Posted by Jacob Williams