Tips to beat the taxman
There are still a number of ways you can reduce your tax bill.
Giving a helping hand
Introducing the concept of saving at an early age is no bad thing. But what are the tax implications...
Cracking the tax code
What effect do these numbers and letters really have on the amount of tax we pay?
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Tips to beat the taxman
Think as a family, not as an individual
We all pay tax on our own individual earnings and assets. But thanks to a number of allowances and reliefs offered to married couples and civil partners - and if you arrange your finances correctly - it is possible to cut the total amount of tax you pay as a couple.
Check your tax code
Problems with HMRC's computers have led to thousand of people paying the wrong tax through their tax code. Check to see if you're paying the correct amount of tax.
Claim all allowances
Many people fail to maximise ISA savings, which can be very tax-efficient. You can save up to £10,680 (tax year 2011/12) in an ISA, of which half can be in cash.
If you buy your stocks and shares ISA through a fund supermarket, such as that offered by Hargreaves Lansdown, you may save on commission and other upfront charges.
Plan ahead
There are a number of little known exemptions allowing you to reduce future inheritance tax bills. Everyone has an annual gift exemption which removes the money from your estate however long you live.
Borrow tax efficiently
Anyone with a buy-to-let property can claim tax relief on mortgage interest. It could made sense to increase borrowing on a buy-to-let property and use this money to reduce the main mortgage on your residential home, where no tax relief is given.
Make the most of 'joint ownerships'
For assets likely to trigger a capital gain (such as a property or shares) it may be worth owning them jointly. If a buy-to-let home, for example is held in joint names, you will be able to use both spouses' capital gains allowance.
Source: Time For Money