Tax Doesn’t Need To Be Taxing With This Simple Technique
They say two things in life are certain: death and taxes. What they tend not to tell you though is that there are lots of legitimate ways you can decrease the amount of tax you’re liable for. And the reason tax saving techniques aren’t shouted about is because it’s not in the government’s interest. For one thing they’d get less money.
To be fair though we can’t help feeling Gordon Brown’s cut of our cash is big enough as it is. We get taxed when we work, when we shop, when we travel, even when we die… in fact, it’s hard to think of anything you can do in this country which doesn’t mean you’re taxed.
And the latest budget doesn’t exactly help. What was it again? Something like a 2p cut… doesn’t mean much when the price of tobacco and alcohol go up significantly does it? Especially if you like the occasional pint or two.
So because Gordon Brown tends to talk a lot, without actually saying anything, and because we feel strongly that the UK is becoming more and more of a rip-off state, we’re going to be telling you about different ways you can reduce the tax you pay as soon as we hear about them – totally legal and established ways. You won’t get into trouble and you’ll be better off for it.
Here’s tip number 1…
If your partner’s not working give them a job.
Every single one of us has a tax free income allowance i.e. we can make up to so much before we get taxed on it. At the moment that allowance stands at £5,035.
If your partner’s not working then that tax allowance is going to waste. It might be that they’re doing stuff like looking after the kids, the house, but they’re not in full time employment. And if you’re the bread winner then you’ll be giving them money, but not in an official, recorded way.
So this tip is really about making what you’re probably already doing official. You employ your partner as a house-keeper, full time carer… whatever you want to call them… and pay them a set wage that comes within their personal tax allowance.
They get an income and you get taxed less than at the moment.
Here’s the important thing though: you have to pay that wage in a way which can be tracked. So handing over a bunch of notes and then telling the tax inspectors you paid your partner so much won’t cut it. Your best bet is setting up a standing order, which pays the wage once a month from your account into your partner’s. That way your bank statements will show a history of payments and you’re kosher.
Remember to check back real soon for more outstanding tax busting tips from yours truly…
Filed under: Top Tips, Sound Advice, Save Money
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