accountancy document

1. How to save tax - Belfast Accountant
Saving tax can be a challenging affair. It poses both a risk and a reward. One risks being stuck in a
sinking investment for at least five years if they make a simple mistake. However, making the right
decision can mean good returns for an investor. Each of these aspects; returns, flexibility, costs,
safety, liquidity and the chances that the income is going to be taxed are supposed to be considered
for every tax-saving option in equal measures. It is prudent to look at individual or co-operate
financial requirements and economical goals that are set to be achieved. At the same time, the tax
reduction system chosen should be an evasive way.
It is a criminal offence to evade paying taxes. That is why it is important to find legal ways that will
help you reduce your tax burden significantly. Incurring less expense on tax leaves part of the
income which can be used for personal development. The best way to save tax is finding the best
deal to invest in and not investing then expecting false returns in future.
Restructure your salary to reduce expenses charged on your income. Different jobs have different
requirements that need an employee to incur expenses. Such expenses are supposed to be the ones
which the employee will not incur anymore in case they stopped working. They should therefore be
paid for by the employer. It is prudent for employees to give proof for such expenses because if they
are genuinely incurred then one can be awarded tax free allowances.
Some allowances are not taxed- take advantage of those to reduce your tax burden. They include
medical, health and medical requirements cover. Housing allowance can also be catered for partially
by the employer. Deductions should be made from your salary than tax returns calculated
afterwards. Some people end up paying more tax because they are not awarded such allowances. It
is prudent to find out from the tax authority how much tax expenses you should be paying.
Beat tax return deadlines to avoid fines. Submitting tax returns after the deadline means punishment
in form of fines. The tax authority has the mandate to levy charges in form of fines. Such charges
increase your tax expenses. With new technology now tax payments can be done online.
If you are an investor take advantage of legally allowed tax free investment plans. Tax burdens can
always be reduced by claiming for allowances on capital expenditures from Investments. Both
employed and self employed individuals can benefit from such plans.
Investors can also carry forward losses that were incurred in the previous fiscal year to the current
year. The deductions will be made on profits and tax returns calculated afterwards. By carrying
forward previously suffered losses, the final tax requirement will be lower. That way, tax is not
evaded and at the same time the cost paid is reduced.
Acquiring a car is every new employee’s wish. Consider getting a car that will not cost much on
your income. Different cars are taxed at different rates. Models that are averagely taxed are the best

2. to go for. Sometimes companies offer employees company cars, don’t just rush to get the car.
Consider using it only if it will mean less tax burden on your shoulder. There are a wide range of
employer benefits one can gain from. Such includes loans that are tax- free. Employee contributions
to pension schemes established by the employer are also supposed to be deducted from the gross
income while calculating tax returns.
Don’t buy Insurance policies. It is a scam that insurance policy benefits are of any meaning to the
investor. In fact, less tax is saved during the usually long term plans. One cannot get out of a plan
easily. Tax authorities allow for incomes not to be taxed if the returns are below the rate of inflation
no tax should be incurred. Insurance policies mean more risk and less investment returns. In any
investment the higher the risk, the more one is supposed to gain in form of returns. But for
insurance policies that are bought every other day, if you fail to pay further contributions after some
time, you risk falling out with the insurer and losing the previously paid premiums. National
Insurance schemes contributions should also be stopped immediately after one retires. That way one
can work after the retirement age without necessarily paying in the compulsory contributions.
Address
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http://www.howtosavetax.org