You and your tax - SAVING TAX
Here are some helpful tips:
� Be sure you have claimed all your allowances.
� Be sure you have included all your allowable outgoings and expenses.
� Check your tax code.
� Check that you haven't missed out on tax allowances in previous years (you can recover these for up to six years).
�, Check that you are not paying tax on any redundancy money you have received or on any payment made to you in lieu of notice or because of personal injury. You shouldn't have to pay tax if your employer arranges things properly, unless you have had a redundancy payment of over £230,000.
� Check that you agree with your tax assessment - if you don't, contact your tax office.
� If you are working, see if you can save money and tax by asking your employer to provide tax-efficient fringe benefits (luncheon vouchers and/or petrol for your car, for example).
� Save tax by taking out a personal pension plan to supplement the one you have at work or in place of it. If you are self-employed, be sure to take advantage of possibilities available to you.
� Save tax if you can on income from any freelance or spare-time work. If you are self-employed - even in part - you may be entitled to claim for certain expenses at home that are relevant to your work. Examples are some costs of the room in your home which you use as an office, the costs of business travel and part of your telephone bill.
� If you are letting a room in your home, remember that you can claim some expenses. Include these on your tax return when you enter the rent you are receiving in the income column.
� If you have children and they are given money, remember they have their own tax-free allowances and watch where you can save money on their behalf.
� Retiring this year? Tell the tax office now in order to avoid overpaying or underpaying tax and having to claim it back or pay extra later.
� If you plan to make a gift of money to a charity, check if you could covenant it.
� Seek help when you need it from your local tax office, or from relevant organizations
Saving tax Quick Tips
� Knowing where you stand in relation to income tax could save you money.
� Keep an eye on your position with regard to Budget changes. How they affect you may not be immediately apparent. Ask your tax office for information.
� If in doubt, ask - the Inland Revenue has helpful information and advice services. Their literature, too, is much easier to understand than it used to be.
� Don't be one of the many people in the country who pay too much tax.
� Don�t be the one that doesn�t pay any tax and ends up in trouble with the bailiffs