Tax Saving Articles
- Reducing Your Tax Bill
No one wants to pay more tax than necessary and there is probably more scope for legitimately saving tax than you think without becoming involved in complicated tax schemes.
- Structuring My Business to Save Tax
Whether you are a new business or have been trading for some time, you will at some point wonder whether you should you think of incorporating your business. Is it best to trade through your own limited company rather than as a sole trader or partnership? It's a very good question to ask for both business and potential tax reasons. In general, it makes more sense to incorporate for business reasons rather than just to save tax, as the tax regime changes and any planned savings may no longer be available.
- Understand Your Tax Code
If you are employed under PAYE then HMRC will provide you with a tax code which tells your employer how much tax to deduct from your income before paying you. A tax code is usually made up of several numbers and a letter, for example: 117L or K497. The tax code spreads your tax-free amount equally each month so that you get roughly the same take-home pay or pension every month. To work out your tax code your tax allowances are added up and the total amount of income you've not paid any tax on deducted. The amount you are left with is the total of tax-free income you are allowed in a tax year.