1. Update Your Boiler
There are lots of tax incentives for people who want to try to live a bit more environmentally friendly, one way to save on taxes is to update your old boiler for a more efficient one. Not only will this save you money on your heating bills, you’ll get a tax break for it too.
2. Get a Low Emission Car
There are tax incentives for owners of vehicles with lower carbon emissions. For example, cars with CO2 emissions of less than 160g/km qualifies for 20% capital allowances in the main rate pool, meaning you could stand to save quite a lot.
3. Improve Your Insulation
If you want to reduce your taxes and your house bills then you should seriously think about improving your insulation – the government will even give you a tax free allowance to help you do it. Once your new insulation is up you should see your heating and electricity bills fall.
4. Charity Work
Charity work doesn’t have to mean standing outside in the rain with a collections box, it can mean giving money to charities for the sole purpose of saving yourself money on taxes too! Charitable donations are tax deductible but you have to make sure you itemize your good work.
5. Sort out Your Inheritance Tax
It is important to make sure your fiscal affairs are water tight – especially when you’ve gone. So writing up a will stating exactly where you want your money to go is vital. There are also various ways you can try to reduce the impact of inheritance tax. These include the ‘7 year rule’, ‘deeds of variation’ and setting up a life insurance policy to meet the cost of your tax bill after your death.
6. Earn Less
It may sound stupid, but you could actually be better off by earning less money. You have a personal allowance of £5,225 below which you cannot be taxed, the closer you can stay to this the better. You should make sure you’re taking advantage of company car schemes and looking into other non-monetary forms of remuneration.
7. Make Your Pension Work for You
One of the best ways to save money on your tax is to get your pension working for you. Remember: it is not only contributions to your pension that are tax free but the growth of assets in the fund too.
8. Claim all Your Entitlements
There are a lot of entitlements that you may be able to claim, the trouble is wading through all the small print to find out which tax returns you may be able to get. The big three to watch out for are Child Tax Credit, Working Tax Credit and Pension Credit.
9 Arrange Your Savings
Until around 15 years ago, married couples were taxed together – a wife would simply have her earnings attached to her husband’s. This archaic law has now been changed, which brings with it tax advantages. Now, you can put both your savings into one account under the name of the person who earns the least, which can prove a great way to save on tax.
10. Talk to Experts
The tax laws in the UK are very complicated and can be confusing and infuriating, however, HMRC know their rightsto save money, so it’s vital you know yours. If you’re not sure how to get the best tax deal for you, then it can help to get expert advice from solicitors like Irwin Mitchell. Experts have the experience and know how to deal with your tax requirements in the way that most benefits you.
Author bio: This is an article written by Adrija Dey