To Make the Most of your UK Tax Refunds
Listed in this article are countless ways to save on your tax bill; read on and find out how to not only save and benefit from UK tax refunds but how to identify your tax code, benefit from tax-free allowances and a host other factors which will help you save on tax!
Reduce your income tax and save on your tax bill
Take the following simple measures to save on your income tax;
- Check your tax code, is it the correct one, as this dictates how much HMRC collects from you as tax
- Claim tax credits a great saver as these credits offer extra money to people caring for children, who are disabled workers and also those earning minimum wage. Claim under working tax credit and child tax credit
- Contribute to a pension scheme before paying tax and benefit from tax relied
- Marriage allowance benefits when one partner earns less than the other personal allowance. Up to £1,250 can be transferred to the others account; contact our tax agents for more details and savings on your UK tax returns.
- Meet the tax return deadline and avoid paying penalties
- Reclaim overpaid tax; use the services of a tax accountant for the best deal
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Make use of employee tax benefits
Make use of your employee tax benefits;
- Get a tax free loan to buy season tickets
- Claim on the tax-free childcare scheme
- Obtain a company car or equivalent in cash (choose the tax-efficient option)
Cut out the tax on your savings
Basic rate taxpayers in 2019/20 tax year can earn up to £1,000 on saving which is tax-free.
Benefit from your ISA allowance
Make use of your annual tax-free ISA allowance. For 2019/20 you can deposit up to £20,000 in ISA accounts
Make the Most of your starter savings allowance
If your income from pension or wage is less than £12,500 for 2019/20 and you earn interest on savings you qualify for the ‘starter savings allowance’ where interest up to £5,000 is tax-free
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Pay less as a self-employed person
Self-employed individuals are awarded a range of tax benefits; such as,
- Tax-deductible expenses where overheads are set-off against tax
- Car costs – claim the running cost of a car
- Choose when your accounting year ends (but you need to choose wisely, do consult our tax accountants for advice)
- Claim tax cuts against annual losses
Increase your dividend allowance
You are allowed to earn up to £2,000 in dividends without having to pay taxes. As you can see there are many ways to save on taxes, you simply need to have the knowledge and the right advise. Contact our team for an evaluation of how much you could possibly save on your UK tax.