Everyone wants to save or have more money. Whether it be in a career pursuit or cutting down on expensive dining, we all look to increase the cushion we may eventually need should an unexpected cost arise. There is an easier way to have a small bonus at the end of the financial year, and it’s all about being efficient and accurate with your tax returns. I would like to give you 5 ways to limit your tax payments that perhaps will help you in this economically tight period we currently face.
- Check your tax code:
Check your tax code on your pay slip each month. If your tax code is not yours, you may be paying too much tax.
- Check your capital gains allowance:
Most countries have a capital gains allowance that is tax exempt to a certain amount. If you are married you may be eligible for double the allowance per couple, which may reduce your taxes on any gains in capital each year.
- Be on time:
Facing tax penalties because you did not submit your tax returns by the specified date is a sure way to lose more money. Ensure you know when the tax returns have to be submitted and allocate sufficient time to do them properly to improve your chances to have a tax return.
- Know what’s tax deductible:
Many items are tax deductible, from education to housing allowances to car maintenance. There are many items that are tax deductible. Find out what you don’t need to be paying tax on.
- Children savings:
If you set up a savings account for a child to attain when they become an adult, you may be able to have a tax deduction from all funds paid to the savings account.
There are many ways to limit your tax payments to pay what is required and no more. Many people over pay their tax each year, simply because they do not take the time to assess what is and what is not deductable. Following some of these steps may go a long way to improving your tax efficiency. You may be surprised to find out just how much you have given away.