UK benefits
are certainly top-class in the world, which is why many politicians are quite
frank about keeping some foreigners from “scrounging benefits” from the UK
without contributing properly. However, UK taxes are also very high, which is
why it is important that you take note of how to avoid high taxes.
1.
Starting
a Family
Anyone has
that friend who tells them that “I should have married so that I would have to
pay less taxes.” Indeed, they’re right; allowances for married couples and
children allows them to use dependents to reduce the amount of income tax they
pay. Dependents are your children. If your partner pays a lower tax rate than
you, then you could go through jointly-owned properties and switching income
assets to your partner.
2.
Retirement
Accounts
You could
achieve financial independence through the use of retirement accounts and other
forms of financial instruments. High tax allowances for ISAs, pensions and
premium government bonds give you great profit that may seem to be very small
when you begin, but they begin to increase in value given your yearly yields.
3.
Tax
Code
An error with
tax codes will cost you a high price in taxes. It is highly important that you
know your specific tax codes because you might be overpaying your taxes. This
is where accountants could help you in knowing your specific tax code for your
area.
