Property News · January 14, 2017

10 ways to cut your tax bill


It’s a job we dread … filling in a tax return before the 31 January deadline. But here’s how to reduce what you owe For many people this month means tackling one of the dreariest jobs of the year – filling in a tax return ahead of the 31 January deadline. But there are numerous ways that you can legally reduce your bill by using rebates and allowances, without resorting to dodgy tactics. Some are new tax breaks that have only come into force in recent years, while others have always been available but are little known.1 The marriage allowance – save up to £432 This works if one person in a couple is a low earner, but millions of people are failing to take it up. Since April 2015 couples in which one person pays no tax because their income is less than the personal allowance (currently £11,000) have been able to transfer £1,100 of that allowance to their tax-paying partner. The rebate is worth £220 a year. It only applies if the earning partner (married or civil partnership) earns £11,000-£43,000. So far it has only been taken up by 1.3 million of the eligible 4.2 million people. Applicants can backdate their claim to the previous tax year, and receive a payment of up to £432. Continue reading…

Source : theguardian.com
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