- Make use of tax-efficient investments: Many investments are tax-efficient, meaning that you don’t have to pay tax on the income they generate. Examples include ISAs, pensions, and Venture Capital Trusts (VCTs).
- Claim all available tax reliefs: There are a range of tax reliefs available to UK taxpayers, such as the Marriage Allowance, capital gains tax relief, and the Enterprise Investment Scheme. Make sure you claim all the reliefs you are entitled to.
- Make use of your tax-free allowances: Everyone has an annual tax-free allowance, which lets you earn a certain amount of income without paying tax. Make sure you make use of your allowance each year.
- Consider salary sacrifice: Salary sacrifice allows you to reduce your taxable income by swapping some of your salary for a benefit (such as a pension contribution or childcare vouchers) which is not subject to tax.
- Take advantage of tax-free investments: Certain investments, such as bonds, are exempt from income tax. Investing in these types of investments can be a great way to keep more of your income tax free.