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British taxpayers will waste over £10bn in unnecessary tax in 2009 – but with a bit of clever financial advice there is no reason why anyone should be spending a penny more than they need to in taxes.

According to the latest Tax Action report from Unbiased.co.uk, the amount of tax wasted through poor financial planning will increase by £700m in 2009 compared to 2008.

Alarmingly, despite this ever increasing tax waste mountain, British people are still not taking action to save money and reduce the amount of tax they pay. Over four fifths of UK taxpayers admit to doing nothing to reduce their tax payments over the past year. And with the credit crunch putting an ever growing strain on people's finances, it is more important than ever for people to act now and claim back their unnecessary tax payments.

David Elms, chief executive of professional advice at Unbiased.co.uk, says: "With individuals and families forced to tighten their belts this year, it is alarming how little people are doing to take advantage of the tax incentives, reliefs and credits available to them, and to avoid being hit by fines for basic mistakes. We estimate that each UK taxpayer will waste an average of over £191 in tax payments this year, although this sum varies greatly based on lifestage and financial circumstances.

"Tax can seem a complex issue and especially in the current environment many are nervous about making the wrong financial decisions. An independent financial adviser can assess your entire financial position and ensure you are being as tax efficient as possible. It is vital that people act now and save money, so we don't see this increase again next year."

If you are self employed or do not earn a regular income, chances are you have some great opportunities to jump through some loopholes and avoid some hefty tax bills. The key is to get some good financial advice – an adviser will not only be able to point you in the direction of some good financial products, but they will also be able to help you go through your finances and see where you could be making some vital savings.

SOURCE: Unbiased.co.uk, 11/03/09

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