Cut that tax

Author: Dot Piper

  (cheap car insurance)

One of the first courses of action is to check that you have the correct tax code. If you have an incorrect code you could be over-paying both your income tax and national insurance. The enquiry number for your local office can be found on www.hmrc.gov.uk .

Do you understand your tax code? There is a clear explanation of this, which ( life assurance ) can be found by logging on to www.direct.gov.uk and finding the heading "Understanding your tax code." (medical insurance)

If you become unemployed and claim unemployment benefits, the tax aspect will be adjusted automatically, but should you not claim these benefits then you may well be able to reclaim some tax. Make sure you keep your P45, which will have been given to you by your last employer and contact your local tax office and ask them for a P50, which is a repayment form.

If youre under the age of 65, youll be able to earn up to £5,035 per year free of tax. Your spouse is entitled to this too, so if their earnings are below that figure, you could transfer any investments to them to make use of the allowance. (cheap loan)

The next piece of advice may not concern everyone, but tax credits are there for the taking. It is estimated that £2.9bn is available from Her Majestys Revenue and Customs and the Department of Work and Pensions. You may be entitled to pension credit, working family tax credit or child tax credit. Theres a website for this too, www.taxcredits.inlandrevenue.gov.uk or you can call 0845 300 3900 to check eligibility.

With the increasing property values in recent years, more and more people are facing the possibility of inheritance tax being charged on their estate. If the value of your ( medical insurance ) estate exceeds £278,000, then your heirs will be paying 40% tax on the excess. You could think about gifting some money to keep the estate value down. You can give up to £3,000 per year, free of tax.

An ISA is an individual savings account, where the interest is tax free. There is a limit of £7000 per year which you can save totally in stocks and shares if you wish. You are allowed a cash ISA of £3000 per year, in which case you may also hold up to £4,000 in stocks and shares. (£7,000 in total is the limit, of which £3000 can be in cash.) (car insurance cover)