We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Things can reduce your income tax?
BillyGreens
Posts: 15 Forumite
i Read from the newspaper that for example if i installation a solore power in my house
this thing can reduce your income tax....!!!
and now i want to know what is the Things that can help you to reduce your income tax....???
this thing can reduce your income tax....!!!
and now i want to know what is the Things that can help you to reduce your income tax....???
0
Comments
-
Earn less.0
-
1. Give your money away to a registered charity via gift aid
2. Pay (more) into a pension scheme
David0 -
DavidHayton wrote: »1. Give your money away to a registered charity via gift aid
2. Pay (more) into a pension scheme
David
3. Use a salary-sacrifice scheme such as Cycle2WorkMy Debt Free Diary I owe:
July 16 £19700 Nov 16 £18002
Aug 16 £19519 Dec 16 £17708
Sep 16 £18780 Jan 17 £17082
Oct 16 £178730 -
Become self employed e.g. opening up a shop and only declare the minimum amount of income, like most people do0
-
cashbackproblems wrote: »Become self employed e.g. opening up a shop and only declare the minimum amount of income, like most people do
Quite! :mad:0 -
cashbackproblems wrote: »Become self employed e.g. opening up a shop and only declare the minimum amount of income, like most people do
Interestingly this is not illegal if done correctly. If you run the business through a limited co. you pay yourself the minimum salary and take the rest as dividends. This reduces the NI you have to pay.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Very true although I would imagine in many high street retail environments at the moment having any profits to pay tax would be something they would be quite glad of.Interestingly this is not illegal if done correctly. If you run the business through a limited co. you pay yourself the minimum salary and take the rest as dividends. This reduces the NI you have to pay.
Next year actually dropping your salary could be worthwhile if you are close to the higher rate band and will lose child benefit as a result. That extra £1 of income could lose you £2000 of child benefit.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Next year actually dropping your salary could be worthwhile if you are close to the higher rate band and will lose child benefit as a result. That extra £1 of income could lose you £2000 of child benefit.
This is already happenning. I will have to reduce my income this tax year in order to keep my tax credits. I am now monitoring every payment that qualifies for gift aid (e.g., YHA membership, my son's weekly subs at scouts, etc, etc) in order to minimise my income.
David0 -
How did the newspaper say it could reduce your income tax? What tax allowance or tax break would apply?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.8K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards