£13.5 billion `will be wasted on unnecessary tax payments`

A combined £13.5 billion will be unnecessarily paid in tax this year because many people are unaware of tax breaks and credits that they are entitled to claim, money advice website unbiased.co.uk says.

The website`s annual Tax Action Report found that the main area of `tax wastage` is in tax credits, with households missing out on £8.5bn through unclaimed child benefit, child tax credits, working tax credits and pension credits. This is followed by inheritance tax, with £1.3bn lost through error or lack of planning.

88% of respondents to the survey say they have done nothing in the last 12 months to reduce the amount of tax they pay, with 45% of these stating that they believe they are already as tax-efficient as possible.

An expert at debt management company Gregory Pennington said: "Tax credit is something which many people fail to take full advantage of. But at a time when many of us are struggling to pay the bills, making the right claims could make a lot of difference.

"However, it`s not something that people with serious debt problems can rely on to get them out of trouble. Someone in that situation should get in touch with an expert to discuss the various options that might be open to them."

Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.