Can I Avoid Paying so much Tax?

Tax can be a really annoying thing for a lot of people. It can sometimes feel like we are paying tax for everything and that we are just paying way too much. We might even feel that we are not using any of the services the tax is paying for or we might just think it is unfair that we pay more than others. You will be pleased to know that there are some things you can do which might reduce how much tax you are paying.

Income Tax

We are all taxed on our income once we earn over a certain amount of money. We can avoid paying tax on it if we earn below the tax threshold but that will mean that our income will be limited. This means that we will probably suffer more as a result. It is probably better to earn more and pay extra tax because the income gained will be far more useful that not paying that tax. However, it is useful to make sure that you are on the correct tax code, as these are not always correct and you may be paying more than you need to. Also check for any tax allowances you may have, such as the married persons allowance. Also consider whether to put some of your earnings into a work pension as these will not be taxed.

Council Tax

Council tax is charged based on the value of your home. This means that if you have a larger home then you will be charged more. Therefore, if you move to somewhere smaller you can reduce the amount that you have to pay. It is also wise to make sure that you are in the right band. You may be paying too much because your band is too high so check with your local council as to whether this is the case with you.

Value Added Tax

This is a tax more commonly referred to as VAT which is added to luxury items. This is incorporated into the cost of items already so it is not always easy to see what items it is on. However, it tends to be added to most things apart from basic food (so it is charged on catering, alcohol, confectionery, crisps, savoury snacks, hot food, sports drinks, hot take aways ice cream, soft drinks and mineral water. Some animal feed, animals, plants and seeds might be free of VAT although standard packages pet food is not. Also gambling, bingo and lottery are exempt, admission by public authorities and charities. Most health, education and welfare is also exempt apart from sanitary products, mobility aids and smoking cessation products. There are also a few other specialist items too. So, if you avoid buying things that attract VAT or reduce how much you spend on them. then you will pay less tax.

Excise Duty

This is a special tax added to certain items such as smoking products, alcohol and fuel and it is charged at a very high rate. So, if you stop smoking and drinking and driving you will reduce how much you pay a lot. However, you may not be able to do this or you may not wish to.

So, although there are ways to avoid paying so much tax, you may find that unless you do not want to earn that much money and you do not want to spend much, it is likely that you will have to pay it. It can be better to just change your attitude towards it and think about the people that you tax is helping, such as helping children to have an education so they can have a job and benefit society, helping people who are unwell to get medical care to prevent them from dying, helping to keep us safe, keep you local area looking nice and things like that.

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