‘Wor­ry­ing’ gap in knowl­edge of tax

Western Daily Press (Saturday) - - Uk & World News -

A GREAT Bri­tish tax quiz from Which? has un­cov­ered “wor­ry­ing gaps” in con­sumers’ knowl­edge about tax perks and penal­ties.

More than 4,500 peo­ple took the quiz – an­swer­ing ‘true’, ‘false’ or ‘don’t know’ to a range of tax-re­lated ques­tions.

Which? said its sur­vey had re­vealed “wor­ry­ing gaps in con­sumers’ tax knowl­edge”.

Just over half of those tested were un­aware how much money can be earned tax-free, the sur­vey found.

When Which? asked if a per­son could earn up to £13,850 with­out pay­ing any tax in the 2017-18 tax year, more than half (51 per cent) be­lieved this state­ment to be cor­rect or did not know. Less than half (49 per cent) cor­rectly said this state­ment was false, as the tax-free al­lowance for 2017-18 was £11,500.

And de­spite Isas be­ing a pop­u­lar place for peo­ple to hold their cash, many peo­ple were un­aware of the an­nual limit for the amount of money that can be put in these sav­ings ac­counts. When asked if a per­son is al­lowed to pay £25,000 into an Isa each year, 68 per cent said they thought the state­ment was true or did not know, de­spite mil­lions own­ing an Isa ac­count in the UK.

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