Tax Advice for Salaried People
Most salaried people often talk about how business class or business groups can save their income tax while their income tax is deducted at source. Income tax would be the greatest expense for any person who is working. Now, aside from the common belief that business class can make adjustments and save income tax and other type of taxes, it is very much possible for salaried people to save tax. You just need to know what to do and how.
Business firms use tax attorneys and consultants to advise them on tax returns and how and what to file and how to get tax rebates even. Most salaried people cannot afford such expensive attorneys so here is a list of a few tips that you can follow in order to save your tax expense:
• File your tax returns regularly. Do not miss the deadline. If you miss the deadline a fine is imposed on you. So you can avoid the fine by meeting your deadline
• You can also volunteer for contributions to your employers pension scheme that will be charged to your gross salary before it is taxed
• If you are changing your car, or the company is offering you a car, go for a green vehicle. It has less tax rather than the other vehicles. So you can save on your car tax
• Checking on your tax code can be beneficial. You need to know that according to your salary which code should be assigned to you and if you’re on a wrong code, you may be paying extra tax.
• Check your salary breakup with your office. If your office has kept your basic salary too high, you may be paying more tax than your salary bracket. Talking to your employer about this can be helpful. If you are given fuel allowance, mobile allowance and other type of allowances, you might want to talk to your employer about adjusting them so your basic salary would become less and you will pay lesser tax
UK Business Directory is one resource where you can find tips and advice about how to lower your taxable income and how to pay less tax.