Leading accounting expert shares seven tips for saving personal income tax

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Do taxes feel like a puzzle to you? You're not alone. Understanding how to manage our taxes can be tricky. But good news - expert help is here.

Jonathan Howard, a top accounting expert and the owner of Accountant Edinburgh, is sharing seven simple tips to help us all save money on our taxes. He’s got a talent for making tricky things easy to understand. Let’s dive into his clear, easy tips.

Renowned accounting professional, Jonathan Howard, owner of Accountant Edinburgh, brings an extensive guide to help UK residents manage their personal income tax effectively. In a simplified manner, Jonathan lays out an expanded version of his 7 valuable tips, making them accessible to everyone, regardless of their financial knowledge.

1. Maximise Your Personal Allowance

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Simple tips to help us all save money on our taxes. Photo: Edinburgh AccountantSimple tips to help us all save money on our taxes. Photo: Edinburgh Accountant
Simple tips to help us all save money on our taxes. Photo: Edinburgh Accountant

Every taxpayer in the UK has a certain amount of income that is tax-free, known as the Personal Allowance. Ensure each family member utilises their allowance fully, which might involve transferring income-producing assets between spouses or civil partners to make the most of each person’s allowance.

2. Claiming Tax Credits

Numerous tax credits, such as Working Tax Credit or Child Tax Credit, are available to support those with lower incomes or those responsible for children. Ensure you explore and claim all relevant credits to minimise your tax liability.

3. Invest Smartly in a Pension

Pension contributions can significantly lower your tax bill since they are tax-deductible. Particularly for higher-rate taxpayers, additional-rate taxpayers, pension contributions can result in substantial tax savings. Consider maximising your contributions to avail of these benefits.

4. Charity Donations and Gift Aid

When you donate to charities through Gift Aid, the charity can claim back the basic rate tax on your donation, and higher-rate taxpayers can claim additional relief via their tax return. This can lower your taxable income, possibly reducing your tax rate and saving you money.

5. Exploit ISAs for Tax-Free Savings

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Individual Savings Accounts (ISAs) allow you to earn interest on your savings without paying tax. Make sure to utilise your annual ISA allowance to maximise tax-free savings and investments.

6. The Rent a Room Scheme

The Rent a Room Scheme allows you to earn up to a certain threshold per year tax-free from letting out furnished accommodation in your home. This could be a helpful strategy if you have a spare room and are looking for additional income.

7. Claim Work From Home Expenses

If you work from home, you may be eligible to claim tax relief for some of your bills, such as heating, electricity, and internet. Ensure to explore this option and claim any relevant expenses to reduce your tax liability.

Accessibility and Clarity in Financial Guidance

Jonathan Howard and his team at Accountant Edinburgh are dedicated to providing clear and comprehensible financial advice. These elaborated tips are crafted with care, ensuring that individuals can not only understand but also practically implement them to effectively manage their taxes.

About Jonathan Howard

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Jonathan Howard, through his firm Accountant Edinburgh, has been a beacon of reliable and practical financial advice. His transparent and easy-to-understand approach in discussing finances ensures that expert advice is not just available but also accessible to all.

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