Six quick ways to check you are not paying HMRC or local council too much money
09.05.2022 - 17:29
/ dailyrecord.co.uk
The cost of living crisis is putting additional financial pressure on millions of households across the UK as people try to juggle rising energy bills, soaring inflation and increasing costs for everyday items such as food, fuel and clothing.
While most households have been forced to tighten their budgets following Ofgem’s 54% energy price cap increase on April 1, other elements which impact outgoings such as the hike in National Insurance Contributions are also putting extra strain on making ends meet.
With the average British household now paying £1.1 million in taxes over their lifetime, Perrys Chartered Accountants shares five top tips to make sure you aren’t overpaying.
If you’re a full or part-time employee you’re likely to be paying tax via pay-as-you-earn (PAYE). This means your income tax is deducted at source and goes straight to HMRC.
Your tax code is essentially a few numbers and a letter, for example 1257L, and it’s shown on your payslip. Those few digits can make quite a difference to the amount of tax you’re paying, and it’s not uncommon for errors to creep in.
For example, if you once had a company car with a fuel-guzzling engine but have switched to an eco-friendly model, your tax code should be adjusted to ensure you are paying less.
If in doubt about your tax code, speak to your employer or check your tax code on GOV.UK, here.
For self-employed workers, there are a host of allowable expenses that can help to bring your tax bill down. These expenses include office running costs, train fares and website fees, and should be taken off your overall profit, meaning you only pay tax on the amount left over after these costs.
Find out more about these on GOV.UK, here.
If you have children and pay for nursery,