11:51 22 March 2013
Are you content with paying more and more taxes every year? Are you one of those people who never seem to get a refund when it’s tax-time? The biggest question is: Are you taking full advantage of all tax laws, strategies, and deductions available to you?
You could be giving away money to the government that should be going into your own pocket! It’s time to get on top of your tax situation.
There are so many changes to tax rules each year, and I admit it’s not always easy to keep up with them all. But having a professional who stays abreast of all new laws and changes, and knows how they will affect your personal tax returns, is very important.
After all, your goal is to pay as little income tax as possible, right? Here are three tips for paying less income tax:
• Know the allowances and tax rates for your age group. Make sure that you are not being taxed if you have not reached the applicable allowance.
Understand and know how to read your tax codes to make sure you are being taxed in the correct bracket code.
Many people are over taxed each year simply because they fail to realize that they were coded incorrectly.
• Take advantage of the cash allowance on ISAs. The yearly ISA allowance is £10,680 of which £5,640 can be invested as cash. This money is not taxed.
• Place your savings into a pension account. Remember that you get £20 back in tax for every £80 saved.
The key to a good 2012 income tax return is taking control and knowing what you can do to get the most out your deductions. You don’t have to be fully at the mercy of the government if you arm yourself with information and education on personal tax returns.
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