Income Tax: Britons can reduce their tax bill using schemes and benefits - key details
Income Tax is paid on elements in everyday life, such as money earned from employment, or, for self-employed people, the profits they make. Even some state benefits such as the state pension, Carer’s Allowance and Jobseeker’s Allowance are taxable. The impacts of Income Tax on the public purse are significant and wide-ranging, with Britons paying a £193.2billion bill in the 2019/20 tax year.
In a similar vein, pensions are often considered as ideal vehicles for tax-free saving.
Hargreaves Lansdown explained Britons will receive tax relief at their highest marginal rate on qualifying contributions made into a pension.
In addition, the first 25 percent taken from a pension is usually tax-free for those making withdrawals.
Thirdly, married couples may wish to consider applying for Marriage Allowance.
