No one wants to pay more tax than they have to — and the good news is, you don’t have to. With a bit of smart planning and professional advice, you can make sure your business or personal finances stay efficient and compliant.
Here are five simple, legal ways to reduce your tax bill this year:
1. Claim All Allowable Expenses
Make sure you’re claiming every business expense you’re entitled to. This includes things like office supplies, travel costs, professional fees, and even part of your home expenses if you work remotely. Every legitimate deduction helps reduce your taxable profit.
2. Use Your Annual Investment Allowance (AIA)
If your business has invested in equipment, machinery, or office furniture, you can usually claim the full cost as a deduction through the AIA. This reduces your profit — and therefore your tax bill — for the year of purchase.
3. Contribute to a Pension
Pension contributions are one of the most tax-efficient ways to save for the future. Not only do they reduce your taxable income, but they also build financial security for retirement. It’s a win-win.
4. Review Your Business Structure
Sometimes, changing the way your business is structured — for example, moving from sole trader to limited company — can help you manage taxes more efficiently. It’s worth reviewing this with a professional accountant to see what works best for you.
5. Make Use of Tax-Free Allowances
There are various allowances that many people forget to claim, such as the dividend allowance, personal savings allowance, or trading allowance for small side incomes. Checking these regularly can lead to valuable savings.
Final Thoughts
Reducing your tax bill doesn’t require shortcuts — just smart planning and the right advice. At Leigh Tax, we help businesses and individuals across Greater Manchester make the most of every legitimate opportunity to save on tax while staying fully compliant with HMRC.