Last year, more than 1,600 people missed the tax deadline by just five minutes. Don’t leave it until the last minute – it’s not necessary and you could be fined.
Why not ask your accountant for advice? It’s not just big city firms that have the answers – it’s just as easy to find a reputable firm of Doncaster, Slough or Cheltenham accountants. If you’re based in the Cotswolds, you could contact a practice like randall-payne.co.uk/services/accountancy/cheltenham-accountants/.
With the 31st January deadline just around the corner, here are five ways of reducing your liability.
Claim Your Due
If you’re in the 40% or 45% tax brackets, make sure you claim the full pension tax relief. You can backdate claims for four years, possibly recovering thousands of pounds.
Charity
Higher rate taxpayers who donate to charity through Gift Aid can yield additional relief.
Professional Expenses
If you pay for membership of a professional body that’s necessary for your job you may be eligible for tax relief on those fees. HMRC has a list of approved organisations.
Child Benefit
You’ll be liable for a charge of 1% of your child benefit for every £200 you earn over £60,000 reaching 100% at earnings of £80,000. Increasing your pension contributions can keep your income below this.
Capital gains
Capital gains tax can be payable on shares or property sales – apart from your main home – if you sell or even give them away. You may not be able to mitigate this, but being prepared will prevent nasty surprises.
