Brits 'waste' billions in tax benefits

Britons waste billions every year by failing to use their tax allowances, Channel 4 News has reported.

The average person pays £290 too much in tax, with 82 per cent of people admitting that they do nothing to reduce the amount of tax they pay.

According to financial advice site Unbiased.com, people waste £3.7 billion by failing to use child tax credits and pension credits - and £1.9 billion will be lost through the overpayment of Inheritance Tax.

Consumers could also save £263 million by using their full individual savings account (Isa) allowance.

David Elms, chief executive of Unbiased.co.uk, said: "With more and more people feeling the pinch in the current financial climate it is surprising just how much we are willing to throw away in wasted tax payments."

Isas were introduced in 1999 to replace tax exempt special savings accounts.