How to save money on UK income tax

by admin on July 20, 2011

in UK income tax

A survey has shown that adults in the United States will waste £9.3 billion in paying irrelevant taxes this year. Experts believe that the scenario may become worse as three fourth of British tax payers have revealed to be not doing something in order to decrease the amount of taxes.

Experts have given several ways to make sure that you do not pay extra amount of money in tax and how to save money on UK income tax.

It is important to check your code for tax each year before paying the amount. Wrong tax code can lead to excess amount of tax being paid by the person.

It is also very important to read the tax chart carefully and calculate the numbers. In the UK, people with businesses under £10,600 do not have to pay any taxes. There are some other specific tax tables that should be looked in to in order to calculate the right amount of tax.

You should make sure that the deadline to pay taxes is not missed in any way. This is one of the ways on how to save money on UK income tax. Plunging the last date, that is, 31 October can cost you a fine of more than £100.

The UK tax department gives businessmen an Annual Investment Allowance (AIA) under which you can claim amount up to  £25,000 annually for investment made on computer systems or any other hardware.

One of the simplest ways to avoid paying unnecessary amount in tax is to claim the extra amount you have paid to the National Insurance Contributions (NICs).

British citizens can invest their hard earned money in pension plans in order to avoid unnecessary taxes and receive a fruitful amount for every penny invested later and is one of the most ways of how to save money on UK income tax. There is a sharp difference of £20 net cost in every £100 invested when compared with a general tax payee.

Interestingly, Britishers who have a single room available in their property can save up to £4,250 every year on UK tax by lending it under the British government’s Rent-A-Room scheme. However, the rent earned from this room will be liable to tax.

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{ 4 comments… read them below or add one }

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tv cover April 8, 2012 at 12:55 am

I rarely do this I stop to msg that you gave me a good idea thanks a ton

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Easy Passive Income April 11, 2012 at 4:41 pm

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tom June 25, 2012 at 9:40 pm

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