Are you still trying to minimize your taxes by faking tax credit to get tax resolution? If your answer is yes, you are heading towards big legal mess as these games with IRS would lead to tax audit. But why you need to get into mess with the IRS when you can minimize your tax amount legally. If this information left you astonished, don’t take it as a joke. This is true there are ways by which you can minimize your tax responsibility legally. If you want to know about them, keep reading!
First of all, you would need to know your tax code. In case, you are paying your taxes via PAYE which gets deducted in response to your tax code. If you want to know about it, find it on your monthly pay slip. You receive your annual P60 from HMRC in addition to coding notice. Once you recieve this information don’t miss out checking the code. It becomes necessary to check the tax code if you have changed more than one job by the age of 65. To reduce your taxes legally don’t ever forget to claim expenses.
You can easily deduct your expenses from the gross profit of your self employed business and on the remaining amount you can pay taxes. You might get deduction of all the costs of your business travel expenses, business dinners and other miscellaneous business expenses. Do you run your business from home? If yes! You can claim deduction for share of electricity and other bills which include mortgage interest and water bills. But while claiming deduction for home office expenses, make sure you are not claiming expenses in excess. Do not exceed the percentage of home you are using for your business.
Have you ever contributed to charity? No! Charities through tax relief schemes can greatly minimize your tax bill. You should also try to avoid taxes on your savings. You can enjoy tax free saving. How? You just need to put money in individual savings account (ISA). If you have kids, you’ve several opportunities to reduce your tax responsibility. Spend money on your kids’ education and other expenses and claim child care expenses. But make sure you have already checked the basic requirements to claim the deductions. One of the most important things to check is the age limit. Moreover, you must have valid bills or invoices otherwise you are more likely to see a different face of IRS. Also contribute to pension plans, if you really want to reduce your taxes. Besides saving money from taxes, you will also get to enjoy your retiree life with ease.