Saving Money on Personal Taxes

poundTaxes are an inevitable part of life. I don’t think any one actually enjoys handing over their hard worked for money to the Government. However, at the same time people recognize that without taxes, the country would end up in some form of anarchy. While to a small amount this sounds like a good idea, it would be anything but. Taxes go towards an abundance of public services. They may not cover all costs but often go to subsidize programs including but not restricted to public forms of transportation, education, legal proceedings, health care, national sport, culture and government media, environmental matters, food inspections, defense of the nation the creation an upkeep of roads, infrastructure etc.

While we agree taxes are a necessary part of life, one also wants to make sure they are only paying what is due and not any more. It is worth finding out what you can legally write off on your taxes to keep as much of your money as you can. There are several ways that people end up paying too many taxes. It pretty much comes down to a lack of knowledge and regulations of the law. Sometimes there could be incorrect tax codes used, sometimes the errors comes on the government side as well, not all overpaid taxes come as a result of the payee. Essentially some incorrect information is used and this ends up costing you. You must first know some basics before filing your taxes.

You need to know what your personal allowance limit is. For 2012-13 the basic amount is £8,105 but this amount changes with age. If you are 65 to 75 this goes upto £10,500 and if you are over 75, there is a small rise to £10,660. You also need to know what can be written off. In order to find this out, it is best to stay on top of the latest tax laws and information. Each year things can change and you will want to know this so you do not make a mistake either in your favor or against yourself. A good place to start is Taxation in the UK from wikipedia. Information here should up updated shortly after it is released keep it current.

While doing your taxes yourself is a practice many do for themselves. A professional accountant for taxes is always a way you can go to limit the chances of errors. They will also remove the stress of knowing if you can deduct something or not. Since they work with this constantly, they tend to know off by heart what is acceptable and what is not. If there ever is any errors and the account made the mistake, you can in turn go after them if there are any fines. If you do find errors mind you, be sure to contact the HMRC as soon as you find out and get the issue resolved.

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