Generally, everyone wants to reduce the amount of tax as much as possible. For reducing such tax liability, a tax relief program has been introduced. While most types of relief are automatic, some are aren’t so you need to write to HMRC and apply for it.
As a tax payer, such tax reliefs allow you to deduct some expenses or payments from your total income. Consequently, you will be able to pay less tax and save some amount of money.
In this post, we are going to discuss about different items where the tax relief is available on.
Pension contributions
Tax relief is available on all pension contributions. Whether you make pension payments on the company (occupational), personal or stake holder pension, you are eligible for the tax reliefs. You can get tax relief worth up to 100% of your annual earnings. In case of work pension, your employer must be registered with HMRC in order to claim a tax relief. However, the relief depends on the type of your pension.
Gifts
When you donate to the charity or community, you will be to claim tax reliefs on them. The donations can be gifts through a payroll giving scheme, gift aids, land, property or shares and leaving gifts in the will. All of these gifts qualify for a tax relief under certain circumstances.
Maintenance payments
If you make payments to your ex-spouse or civil partner, those payments can qualify for a tax relief under some conditions. Those conditions include:
- You or your ex- civil partner or spouse must be born before 6 April 1935
- The payments are made under a court order after the end of relationship
- The payments are made for the maintenance of your ex-spouse or civil partner or for your children under 21years of age ( your ex-spouse or civil partner shouldn’t be remarried or in new relationship to qualify for the payments)
