‘Worrying’ gap in knowledge of tax
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.