Everyone knows that the only two things certain in life are death and taxes - and most people are happy to pay their fair share of the latter. But no-one wants or needs to pay more tax than is legally necessary.
As we approach the end of the 2016/17 tax year on April 5th, JustAnswer shares the five most accessible ways to pay less tax.
- Check your tax code Every year HMRC gives thousands of people the wrong tax code, meaning they might be paying too much tax. You can check your tax code on the government’s website here.
- Look into salary sacrifice schemes at work At heart these schemes are simple: you give up part of your salary in exchange for a non-cash benefit such as transport or childcare. Because your salary is less in cash terms, you will end up paying less tax and national insurance.
- Top-up your pension When you put money into your pension, you are only taxed on the amount left after you have topped up your pension. For example, if you earn £25000 and put £5000 into your pension, you will only be taxed on £20000.
- Savings Make you sure you take every possible advantage of savings allowances. From April 6th 2016 every UK taxpayer is able to earn £1000 in interest - tax-free. You should also take advantage of ISAs and other tax-efficient savings vehicles.
- Married couple allowances If you are married or in a civil partnership, and you earn less than £11,000 per year, you can transfer £1100 of your personal allowance to your partner or spouse, provided they are not a higher-rate taxpayer.
If you have more questions about how you personally can save tax, JustAnswer is here for you - 24/7. Tax Experts on JustAnswer can answer your questions about tax allowances, deadlines and more.
Need more personalised help? Tax Experts can offer phone support or document preparation help with a premium service.
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