We are all looking for ways to make our pay go further, and to pay less tax on what we earn.
Here are a few ideas on how to make the most of your salary by saving tax, and maximise your income.
1. Pay into a Pension Scheme
The payments that you make into your employers pension scheme (including any additional voluntary contributions) can be made from your gross pay. This reduced your gross pay for taxable purposes, and therefore saves the tax on any contributions that you make.
2. Marriage Allowance
From 6th April 2016 married couples and civil partners can transfer £1,100 of personal allowance from the lower earning partner to the higher earning partner saving £220.00 in tax. This is only available if the higher earner is a 20% tax payer.
3. Gift Aid
Making donations to charity through Gift Aid can reduce your taxable income, and if you are a higher tax payer you can claim back the difference between the basic and higher rate of income tax on any donation made.
4. Go Green
If you are changing your company car, consider a low-emissions model. These are now taxed at a lower percentage of their list price than cars with a high CO2 rating.
5. Salary Sacrifice (Such as Childcare Vouchers and Cycle to work schemes)
Further details of salary sacrifice schemes are on HMRC’s website at https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye
Details of limitations and recent changes to salary sacrifice schemes can be found at;
Childcare vouchers information can be found at;
Cycle to work scheme details can be found at;
Contact the payroll team by completing the form on our website. Alternatively you can call us on 020 8977 3559 at our Hampton Wick office to speak to an adviser.