📌 How to Reduce Your Tax Bill Legally – Top Tax-Saving Tips

As a business owner or individual taxpayer in the UK, finding legal ways to reduce your tax bill can help you retain more of your hard-earned money. Understanding tax reliefs, allowances, and efficient financial planning can significantly cut down your tax liability. At Certax Accounting Bradford, we specialise in helping individuals and businesses navigate the UK tax system effectively. Here are some top tax-saving tips to consider.

1. Maximise Your Personal Allowance

Every UK taxpayer is entitled to a personal allowance, which is the amount of income you can earn before paying tax. For the 2023/24 tax year, this allowance is £12,570. Ensuring you use this allowance efficiently can help reduce your tax bill.

2. Use Marriage Allowance

If you’re married or in a civil partnership, you may be eligible for Marriage Allowance, which allows a lower-earning partner to transfer up to £1,260 of their personal allowance to the higher-earning partner, reducing their tax liability by up to £252 per year.

3. Claim All Allowable Business Expenses

If you are self-employed or run a business, claiming allowable expenses can significantly reduce your taxable profits. Common allowable expenses include:

• Office rent and utilities

• Travel costs (fuel, parking, train fares)

• Business insurance

• Marketing and advertising costs

• Professional fees (accountants, solicitors)

4. Consider Tax-Efficient Investments

Investing in tax-efficient schemes can help lower your tax burden. Some popular options include:

• Individual Savings Accounts (ISAs): Interest and gains are tax-free.

• Pension Contributions: Contributions receive tax relief up to certain limits.

• Enterprise Investment Scheme (EIS) & Seed Enterprise Investment Scheme (SEIS): Tax-efficient investments in start-ups and small businesses.

5. Make Use of Capital Gains Tax Allowance

If you sell assets like property or shares, you may be liable for Capital Gains Tax (CGT). The annual CGT exemption for 2024/26 is £3,000. Spreading asset sales over different tax years or transferring assets to a spouse (who has their own CGT allowance) can help reduce tax liability.

6. Utilise Tax-Free Benefits for Employees

If you own a business, offering tax-free benefits to employees can be a great way to reward staff while reducing taxable profits. Common options include:

• Cycle-to-work schemes

• Employee assistance programmes

• Childcare vouchers (for those still eligible)

7. Register for VAT If Beneficial

Businesses with taxable turnover over £90,000 must register for VAT. However, voluntarily registering for VAT even when under the threshold can be beneficial, as it allows you to reclaim VAT on business expenses.

8. Make Charitable Donations

Donating to registered charities through Gift Aid allows the charity to claim an extra 25p for every £1 donated, and higher-rate taxpayers can claim additional relief via their Self-Assessment tax return.

9. Plan Inheritance Tax (IHT) Efficiently

Inheritance Tax (IHT) can significantly impact the wealth passed on to your family. Using gifting allowances, trusts, and charitable donations can help mitigate the IHT burden.

10. Work with a Professional Accountant

Tax laws are complex and constantly changing. At Certax Accounting Bradford, we help individuals and businesses implement tailored tax strategies to minimise tax liabilities while remaining fully compliant with HMRC regulations.

Get Expert Tax Advice

If you're looking for personalised tax-saving strategies, get in touch with Certax Accounting Bradford today. Our expert accountants can guide you through the best ways to legally reduce your tax bill.

📍 Address: 174 Barkerend Road, Bradford, BD3 9BH
📞 Phone: 01274 800 550
📧 Email: bradford@certax.co.uk
🌐 Website: www.certaxbradford.co.uk

Stay tax-efficient and financially secure with Certax Accounting Bradford – your trusted tax and accounting experts!