If you are employed, you should monitor your tax situation very closely to make sure you are not paying more tax than is actually due..
Check out our Top 5 Tax Tips:
1. The tax burden for company cars continues to increase, so many employees are choosing to use their own car. If your employer pays you mileage at less than the approved rate, you can claim a tax deduction for the shortfall. The approved rates for cars and vans are 45p per mile for the first 10,000 business miles in the tax year and 25p thereafter.
2. If you choose to have a company car, the benefit and fuel scale tax charges are linked to the CO2emissions of that car, so you can make tax savings by choosing your car carefully. To eliminate the fuel scale charge, reimburse your employer for all of your private mileage at either the pump price or HMRC’s approved advisory fuel rates.
3. A great tax free benefit is a mobile phone where the bill is in your employer’s name. You can make as many personal calls as you like without suffering any extra tax.
4. If you pay for any business expenses personally and do not fill in a Tax Return you need to claim relief by filling out form P87.
5. Make sure you always check any PAYE coding notices and P11D forms received to check they only have the benefits you are receiving on them. We have seen a number of errors on these in the past few years so it is well worth checking.
Follow the above tax tips and you won’t be paying any more tax than is absolutely necessary.
Taylor Accountancy takes every care in preparing material to ensure that the content is accurate and up to date. However no responsibility for loss to any person acting or refraining from acting as a result of this material can be accepted by Amy Taylor Accountancy Limited. You should always ask your accountant to give you specific advice which is tailored to your personal and business circumstances and properly implemented.