UK Tax Savings Tips
Quick Tax Savings Calculator
How to Use the Calculator:
1. Enter your annual salary before tax
2. Enter how much you plan to contribute to your pension each month
3. Click "Calculate Savings" to see your results
Understanding Your Results:
The calculator shows two types of savings:
- Tax Savings: The amount you save in income tax based on your tax rate (20%, 40%, or 45%)
- NI Savings: The amount you save in National Insurance contributions (typically 12%)
For example, if you earn £35,000 and contribute £200 monthly to your pension, you'll see both the tax relief and NI savings you could receive over a year.
Top Tax-Saving Strategies
Work From Home Relief
Claim £6 per week tax relief if you're required to work from home, even for part of the week. No receipts needed for this amount.
Salary Sacrifice Schemes
Save tax and NI through workplace schemes like cycle-to-work, electric car leasing, or additional pension contributions.
Tax-Free Allowances
| Allowance Type | Amount (2024/25) | Notes |
|---|---|---|
| Personal Allowance | £12,570 | Reduces by £1 for every £2 earned over £100,000 |
| Savings Allowance | Up to £1,000 | £1,000 (basic), £500 (higher), £0 (additional rate) |
| Dividend Allowance | £1,000 | Tax-free dividends from shares |
| Trading Allowance | £1,000 | For self-employed/side income |
Tax-Efficient Investments
Save up to £20,000 per year tax-free. Options include:
- Cash ISA: For savings
- Stocks & Shares ISA: For investments
- Lifetime ISA: Get 25% government bonus (max £1,000/year)
- Innovative Finance ISA: For peer-to-peer lending
Invest in qualifying startups for tax relief:
- EIS: 30% income tax relief on investments up to £1m
- SEIS: 50% income tax relief on investments up to £100,000
- Capital Gains Tax exemption on profits