12:17 26 March 2013
There are several ways you can reduce your tax burden or get more money back in a rebate. Ever wonder why big business contributes to charities? Part of the reason is tax deductions and the same rules can help you reduce your tax debt to the government, or get more back for yourself.
If you have children 18 or over you can give them income-producing gifts which also reduce your tax amount. They will end up paying the taxes on the gifts instead of you. Don’t be scared though because you can give them a gift up to £8,105 as long as they have no other income while in school.
Want to give them more? They will only pay 10per cent on a gift up to £10,545. You can give more but the tax goes to 20per cent then and eventually after that it will go to the 40per cent rate.
Lastly double check your tax codes and penalties, if any, since they have changed from the previous year. If you didn’t notify the HM Revenue & Customs about an important change, such as starting self-employment, selling a house or letting a house out, but have not earned any profit then there is no penalty anymore.
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