7 Tax Saving Tips To Cope With The Cost Of Living Crisis In UK

Tax Saving Tips

If the pandemic was not enough to cause havoc on the economy, the recent Russian invasion of Ukraine has caused an unprecedented rise in inflation. Out of all the countries deeply affected by this recent development, UK is the most affected. The worst fits are the food and energy. Although the Government is taking ample measures to counter this effect, taxpayers are going through tough times. They are increasingly looking for ways to cope with this crisis. So, here are the seven tax-saving tips that can help you

1. Do Not Miss The Tax Return Deadline

When you are already going through a financial crisis, the last thing that you need not is a penalty. Yes, if you miss your tax return deadline and it is already three months, you will have to pay a fine of £100. You can easily avoid this penalty by taking the help of experienced accountants. They will inform you about important tax-related dates and make the tax return process easier!

2. Use Tax-Free Childcare

Do you have children under 12? If yes, use the tax-free childcare. Use it for paying the expenses that go into nurseries, play schemes, or afterschool clubs. For each of your children, you can have an amount of up to £500 after every three months. Under this Government scheme, it is possible to claim even more if any of your children have any disability.

3. Know The Allowable Expenses

If you are a landlord, sole trader or contractor, it makes sense to know your allowable expenses and save your taxes. Many of you may be already aware of these business expenses, but still, if you are not, act immediately!

4. Reclaim overpaid taxes

Sometimes, your income may fluctuate during a tax year. Reasons can be any of these, such as getting sacked from the job, frequent job changes, being out of work, and so on. As a result, you may end up paying more tax than you should have. So, if this is the case, HMRC will assume that you have used your allowance equally each month. So, reclaim your overpaid taxes by filling out the form R40.

5. Make Use Of Company Perks

You may even know that your company provides some perks like a bonus sacrifice, tax-free season ticket loan, monthly lunches, etc. So, ask your employer about the company’s perks and save hundreds of pounds!

6. Married Couple Allowance

If you are married, living with your spouse, and born before 6th April 1935, claim the married couple allowance. This can decrease your tax bill substantially in a tax year. If you are living separated from your spouse, but there is no legal separation, you can still claim this allowance.

7. Go For A Low-Emission Vehicle

In a bid to take measures for climate change, the UK government has taken plenty of measures. Linking vehicle tax with the amount of carbon dioxide emitted by the vehicle is one of these measures! So, change your existing vehicle to a low-emission one and pay taxes at a reduced percentage.

During these tough times, it is also very important to look for the existing Government support schemes. However, things are not easy as they might seem on pen and paper. So, contact a reputed accounting firm in your locality and take professional help by hiring an accountant. Based in London, CoreAdviz Accountants are always there to help you.