Tax saving tips

Check out the tips below to see the kinds of areas where you could be saving tax.

• A pension can be relief – Max up your pension contributions before the end of the tax year to gain generous tax relief and then benefit from the tax efficient treatment of pension funds.
  
• An ISA’s nicer – Individual Savings Accounts are great for tax breaks if you’re saving or investing.
  
• Use your other half – A higher rate taxpayer can save tax by transferring money into a lower earning – or non-earning – spouse’s name.
  
• Make a will – It’s the only way to be sure your loved ones don’t miss out on their inheritance, and limit the tax paid on your estate.
  
• Check your code – Make sure you have the right tax code or you could be paying tax at the wrong rate.
  
• Rent out your spare room – Many people raise extra income tax-free by renting out a spare room in their home.
  
• Don’t get stamped on – You can save literally thousands in stamp duty by buying in a disadvantaged area or by negotiating the purchase price below stamp duty thresholds.
  
• Company car? – Fill in a form to declare it as a taxable perk. Broadly speaking, the smaller the vehicle, the less tax you will pay.
  
• Made a gain? – Mare sure you take full advantage of your annual capital gains tax exemption limit.
  
• Keep it in the family – The kids get their own personal tax allowance too, and you can set up tax-efficient trusts for children or grandchildren.
  
• Don’t pay income tax if you don’t have to – if you’re under 65 and will earn less than £5,435 in the tax year 2008/2009, click here to download the R85 form and claim back your overpaid income tax.

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