Ways To Save Money On Your Tax Bill Each Year

by Miguel Poza - Date: 2006-12-04 - Word Count: 434 Share This!

No one wants to pay too much tax and if you are looking for some ways you can reduce the amount of tax you have to pay the taxman each year then take a look at the list of tax saving ideas compiled below:

1. Always try to make full use of your capital gains allowance that you are entitled to each year.

2. Ensure that you send in your tax return in before the deadline each year in order to avoid receiving a fine for filing your return late.

3. You can save 10 pounds off your tax bill by filling in your tax return online.

4. If you are a non tax payer then make sure that you complete a form at your bank or building society so that you do not pay tax on the interest on your savings.

5. If you are married, then make sure that any income you receive from investments is paid to the partner that pays the least tax.

6. Always check any calculation made by the tax man or any tax code given to you as they can make mistakes.

7. Always keep your tax records in a secure place, up to date and in good order as it is possible to get fined by the taxman for not keeping tax records.

8. When choosing your company car, go for a car with low carbon emissions as the amount of company car tax you pay is based on its carbon emissions.

9. Try to take full advantage of the tax incentives given for taking out a pension.

10. In order to reduce inheritance tax liability on your estate in the future, you could make some gifts whilst you are alive to the people you wish to inherit that money.

11. You could arrange to make a will which can be used to reduce tax on your estate and make things easier and clearer for everyone when dealing with your estate.

12. If you are a taxpayer then a good idea is to make full use of tax free savings schemes such as ISA schemes.

13. If you would like to give to charity then you can ensure that the tax goes to charity by using Gift Aid.

14. If you find that you are paying too much tax on account, you can request to pay less on account through the taxman.

Well that is all the tax saving tips I have for you in this article and if you try to do some or all of these things it will be worth the effort as you will be able to save a worthwhile amount of tax in the future.

Related Tags: money, planning, tips, tax, saving, capital, gift, save, will, bill, taxman, gains, isa, aid, account, taxpayer

Miguel Poza runs a website about personal finance and saving money where you can findout about many free money saving tips and read other money related articles which willhelp you sort out your finances. You can check it out at Money Helper Your Article Search Directory : Find in Articles

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