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Are you looking for ways to reduce your self assessment tax return bill?

Look no further!

In this blog post, we’ll provide you with six tricks to cut your tax return bill. From claiming tax relief on holiday homes to taking advantage of pension tax relief, we’ll cover it all!

Keep reading to find out how you can maximise your tax returns and reduce your overall bill.

Holiday home

Are you the owner of a holiday home? If so, you may be eligible to claim capital allowances on certain costs associated with the property.

These deductions can significantly reduce your total tax liability. Allowing you to receive a tax refund or a reduction in your international tax return.

RHJ Accountants have financial advisors who can help you find out more information; about claiming capital allowances on holiday homes.

 

Self employment

If you’re self-employed, then you could be missing out on a tax refund if you haven’t claimed for trading losses.

Under current regulations, any trading losses incurred in 2021-22 can be offset against other income in the same or previous tax year. This means that if your business has suffered during the pandemic lockdowns, you may be able to make a significant saving when it comes to your international tax return.

In addition, if you’re still in your first four years of trading, then you can offset the loss against income from the three previous tax years instead of just one. So make sure to check if you’re eligible for a tax refund. And don’t forget to include it when you submit your international tax return.

 

Pensions

Pension contributions are one of the best ways to reduce your tax bill. For personal pensions and some workplace pensions, basic-rate taxpayers will automatically receive 20 per cent tax relief. With higher-rate taxpayers needing to claim their extra 20 or 25 per cent in their tax return. This can be done through a tax rebate, a change in your tax code, or a reduction in this year’s tax bill.

Unfortunately, salary sacrifice schemes mean that you cannot claim any additional tax relief on pension contributions.

When filling out your return, remember to include the gross value of your pension contributions, meaning the total you have paid, plus the basic rate tax relief. Additionally, if you haven’t claimed previously, you can still claim higher-rate relief for up to four years by contacting HMRC.

Taking advantage of pension tax relief is a great way to make sure you don’t pay more tax than you need to. Consider how much you can afford to contribute. Then make sure to claim back any higher-rate relief you are due.

 

Charitable donations

Charity donations are a great way to help those in need and can be beneficial to you at tax time too. Through Gift Aid, charities and community amateur sports clubs can claim back the basic rate tax relief paid on the value of your donation. This is calculated on your gross donation, or the amount of money you donate before any tax has been deducted.

If you’re a higher-rate taxpayer who has made a charitable donation, you can also claim back the difference between the basic rate and the rate you pay. To do this, you must fill out a self-assessment tax return and include details of your donation as well as the relevant form.

Be sure to keep all of your records and receipts for your donation. You may need them for evidence if HMRC decides to investigate. In some cases, you may even be eligible for an additional tax reduction if the gift qualifies for special tax relief.

Making charitable donations can not only help make a difference in people’s lives; but it can also reduce your tax bill at the same time. Be sure to take advantage of any tax savings available when making your donations!

 

Creative artists & farmers

Averaging relief is a great tax break for creative artists and farmers. This option allows those with an unstable income to be taxed on their average profit. Rather than paying a higher rate of tax because they earned substantially more one year compared to the other.

Writers, artists, and musicians can ask for their profits to be taxed based on the average over two years. While farmers are given five years. This averaging relief is especially beneficial for those who experience large changes in their income levels from one year to the next.
By taking advantage of averaging relief, creative artists and farmers can reduce their taxes significantly and keep more of their hard-earned money.

Be sure to check with RHJ Accountants to determine if this type of tax break is right for you.

 

Claim for investment losses

Investment losses can be claimed to reduce your tax return bill. For example, investments held outside of an Individual Savings Account (ISA) are subject to capital gains tax. If you have made a profit from selling shares this year, you can offset any losses from the four previous years against your capital gains tax bills.

Claiming investment losses this year will also be beneficial if you make a gain in subsequent years. It is important to keep detailed records of all investment transactions and capital gains or losses to ensure you are making the most of the potential tax relief. Losses can be claimed against both short-term and long-term capital gains, but not against ordinary income. Additionally, investors may also be able to carry losses forward to future tax years.

It is important to note that investors cannot claim a loss greater than the total amount of their taxable gain for the year. Therefore, you should consider how much tax you owe before claiming a large loss.

Claiming investment losses can help reduce your tax return bill and provide additional savings. By taking advantage of these deductions and understanding their benefits, you can minimise your tax liability and get the most out of your investments.

 

How RHJ Accountants can help

At RHJ Accountants, we understand the importance of paying your taxes. But when it comes to tax returns, our goal is to help you pay as little as possible. We can file your tax returns on your behalf and ensure that all applicable deductions are applied. So that you don’t have to worry about any extra tax payments.

Also we can review your current processes to see if there are any areas in which you could improve. We may be able to find deductions or credits that you were not aware of that could save you money. We can also advise you on the best strategies for taking advantage of tax relief options such as those mentioned above.

At RHJ Accountants, we strive to provide the best service and guidance to our clients when it comes to filing their tax returns. Our team of experienced professionals are always here to help you make the most out of your tax return. And ensure that you don’t pay a penny more than you should.

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💬 PSA: between April & June our Portuguese team have limited meeting availability due to the Tax Return Submission Period 🇵🇹