How to Save Tax UK. Are You Paying More Tax Than You Need To? Let’s Fix That!
Let’s be real: nobody wakes up excited to pay tax. It’s like that friend who invites themselves to every party, uninvited, and always turns up when you least expect it. But here’s the thing: paying unnecessary tax is like giving away money you don’t have to. So, let’s talk about how to prevent that from happening.
1. Slash Your Income Tax (Like a Financial Ninja)
First things first, check your tax code. If it’s incorrect, you could be handing over more money than your hairdresser charges for a trim. Also, have you claimed your tax credits? Marriage allowance? A pension? Sort these out, and you’ll be saying “Tax? Who, me?”
Pro tip: If you’re getting a tax refund, don’t just spend it on takeaway pizza. Reclaiming overpaid taxes is essentially free money (that doesn’t come with extra cheese).
2. Employee Perks to the Rescue
If your employer offers a seasonx-free childcare, or a bicycle scheme, grab ‘em like your grandma grabs the last piece of cake at a family gathering. These perks save you money, and if you don’t take advantage of them, you’re essentially throwing cash into the wind. (Please don’t throw your money, though. It’s bad for the environment.)
3. Save Tax on Your Savings (Because Why Not?)
Make the most of your ISA allowance as if it’s the last bus to savingsville. Utilise your personal savings allowance and steer clear of the starter rate for savings as if it’s a trap from a reality show. Consider it as your savings going undercover to avoid paying excessive tax.
4. Self-Employed? Time to Reclaim Your Kingdom
If you’re self-employed, you have a few tricks upke reclaiming the running costs of your business car! (Don’t tell your friends, but your car just got you a tax break.) Additionally, adjusting your accounting year-end could give your cash flow a makeover, who doesn’t want a glow-up in their bank account?
5. Investments – The Secret Sauce for Tax Saving
Maximise your dividends as if you’re competing with your neighbour’s Christmas lights. Use your capital gains tax allowance wisely and put those investments in ISAs to avoid being struck by a CGT tax monster. If you’re feeling adventurous, consider options like Enterprisemes or Venture Capital Trusts. It’s akin to the financial version of skydiving. Investment Sche
6. Property Income Tax: Keep More, Pay Less
Renting a room? If you do, there’s relief available for that. Have landlord expenses? You can claim them. Essentially, you’re receiving tax relief every time someone pays rent, so indulge yourself with a cup of tea (you’ve earned it).
7. Inheritance Tax: Plan Like a Pro
They people say that inheritance tax is a tax for those who like their kids less than they like the taxman. However, with some planning, you can pass your belongings to your heirs without giving half of it to the taxman.
8. Charitable Donations: Help Others AND Yourself
Want to be a hero and save on tax? Make charitable donations through Gift Aid. Not only will your favourite charity benefit, but your tax bill may also shrink. It’s a win-win situation, like getting the last slice of pizza without having to fight for it.
Ready to Save? Get Your Tax Score!
Now, take a deep breath, evaluate your finances, and see how much tax you could be avoiding. You might just discover you’ve been leaving cash on the table all this time! And hey, if you want to rate your tax-saving skills, check out Financial Planning Scorecard and see how you measure up. Happy (legal) tax-saving!
