Ways to offset my P800 tax

Rochdale_Pioneers

Having been hit with a P800 bill (I thought just under a grand was a lot, but having read more threads on here I guess I am lucky) I am wondering what I can do to offset this?

OK so they're chinging me an extra £79 a month. What options do I have to offset that against something else? Paying more into my pension seems like one option, as is giving to charity (can you still do that tax free through PAYE?). Any other ideas?

jennifernil

I don't understand what you mean.

If you have an underpayment to clear, there is no way round it. But you can reduce your current years tax by paying into your penion.

Mikeyorks

Rochdale_Pioneers wrote: »

What options do I have to offset that against something else?

Stop smoking / drinking / living?

As previous post - this is a closed year(s) ....... so nothing you can do retrospectively.

Rochdale_Pioneers

*grin* what I mean is that if Tax Man wants an extra £79 a month off me next tax year, I want to take £79 in tax off him. I know that I can pay extra into my pension and reduce my tax bill that way. What other things can I do to reduce tax from PAYE?

Mikeyorks

Paying into a pension is the usual way or any other 'salary sacrifice' approved scheme :

http://www.hmrc.gov.uk/specialist/salary_sacrifice.htm

Or you can always surprise your employer and take a significant salary cut? (grin again) But that will mean the underpayment will run on into the following year - so not a good idea!