Legal Ways To Avoid Paying Tax

Tax is something that we all have to pay, but we all hate to pay. Just think how you could use that money to better your life. It is not even worth thinking about because it is your obligation as a UK citizen. Or is it? Of course, you have to pay tax because you can’t pay any tax over the course of the year. But, you can legally pay less tax to reward you in the future. How do you do it? You do it by following these simple guidelines.

Hire A Team Of Professionals

To begin with, you should outsource your tax needs to a team of professionals. A company like Associate Services has a workforce that is dedicated to avoiding tax. Okay, that sounds dodgy, but it is all legal. They keep up with all the latest trends and regulation changes to make sure you or your company doesn’t have to fork out on a huge tax bill. Another option is to talk to an accountant and ask for their help. Either way, you need to pick the brains of someone who has experience in the industry.

Invest In Your ISA

Everyone in Britain has a tax-free allowance of up £15,000 that they can save in an ISA account. If you want to stop the taxman from getting his greedy hands on your money, you can put it in your savings account. As long as the money doesn’t go over the maximum amount, the money is all yours to use how and when you want. Even better, you can create accounts for other people and save more on tax. Your children and grandchildren are great ways to increase the limit past £15,000.

And Your Pension

The government is encouraging people to avoid tax with this method. They want more people to be self-sufficient in the future so that they can cut costs on pensions. As a result, there is a big opportunity for you to save a bundle of money. If you pay your pension contributions straight out of your wage, they won’t tax it because the income tax and NI have already been deducted. The more that you can siphon into your pension, the less you will pay in tax.

Make A Claim

In Britain, everyone gets a tax break of £10.600. Quite simply, you have to earn over this amount before you pay tax. Obviously, the closer you get to this number, the less tax you pay. If you earn a lot more than this amount, you can still lower your tax contributions by making a claim. As long as you have business expenses, the government will tax these expenses off your tax bill. That means that you want as many legitimate expenses as possible to avoid paying tax. A word of warning: never try and cook the books. That is fraud, and it may lead to a prison sentence.

Use Your Spouse’s Allowance

If your spouse pays less tax, transfer some of your assets to them. The transfer should even out both of your tax bills and make it cheaper on the whole. It is not like you have separate accounts.