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Here are some simple ways to save tax:

  1. Keep accurate accounting records, remember to note down all business expenses;
  2. File your tax return before the 31 January and avoid unnecessary fines;
  3. Pay your tax on time so avoiding having to pay interest as well as a 5% surcharge;
  4. If you are married consider organising your investments so that investment income is paid to the partner who pays tax at the lower rate;
  5. You can invest in a Stakeholder Pension for your husband or wife even if they have no earnings, and you get basic rate tax relief on the contributions;
  6. If you make a payment to a charity under gift aid or a  charitable covenant and are a higher rate tax payer you will receive additional tax relief;
  7. If you are eligible for a Child Trust Fund the government will send you (the parent) a voucher for £250 to open a Child Trust Fund account for your child (in certain cases there will be an additional £250 voucher). Not only do you get at least £250 (voucher) but Child Trust Funds are free from income and capital gains taxes. (The Child Trust Fund is available for children born on or after 1st September 2002);
  8. Check your eligibility for Child Tax Credit and Working Tax Credit and don’t miss out on your entitlement;
  9. If you are aged 65 and over check you are receiving your additional personal allowances.
    (the maximum allowance is only given to those individuals whose income does not exceed £21,800 (2008/09) previously £20,900 (2007/08), after this a reduction is applied to the additional allowance);
  10. Consider replacing your old company car with a new tax efficient model and reduce your tax bill.

The above are only a selection of the more simple tax saving ideas, for a more detailed look at your tax affairs contact james@jamesgreenandco.co.uk today.

Other posts that may be of interest are:

What is Inheritance Tax?

What is the Difference Between Residence and Domicile?

The Benefit of Offshore Trusts

Five Ways to Save Inheritance Tax

Also See – Category: Taxation

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