How To Reduce Self Employment Tax UK

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Tips On How To Reduce Self Employment Tax UK

Here are three main methods for how to reduce self employment tax UK. See info and more resources below.

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How To Reduce Tax

We all are searching for ways to reduce our tax bills.

The following are a few ideas for years to come, and the way to reduce income taxes this year.

But, did you realize that saving for retirement is a tip when you’re thinking about how to reduce income taxes?

You’re decreasing your adjusted gross income from the amount you save, thus decreasing the income you have to pay taxes by saving for retirement.

Did you know that in the UK the government offers to pay you for saving into your own private pension? Get info on Pensions Tax Relief here.

Also, did you know they give you money to add to your savings if you are on a low income or receiving working tax credits? Yes, get info on Help To Save here.

 

Losses On Stocks

Sell stocks which aren’t doing great – determine the stocks which are worth much less than you purchased them and look at your portfolio after they are sold.

Losses on stocks are tax reductions.

Remember to keep your paperwork when you’re trying to ascertain how to reduce income taxes.

Property Costs

Receive a mortgage for rental properties and grow your income at the same time.

If you don’t invest in property you’re missing one of the tax savings opportunities, and it’s no wonder you’re asking to reduce income taxes.

Mortgage interest is tax deductible, if you are running it via a limited company in the UK.

So you may save a bundle and in the first few decades of a mortgage, most house payments go to interest.

Get a second mortgage.

In case you’ve other debts, like an automobile loan or credit cards and you are thinking about how to decrease income taxes, consider taking out a house equity loan and utilizing the money to pay off your other debts.

Depending on your financial setup, the interest you pay your house equity loan may be tax-deductible, but the interest on your credit cards and also automobile loans aren’t.

 

US Citizens in the UK

Lastly, in the USA, you can deduct your child’s tuition, if you are a US citizen living in the UK then this could help you out.

If you are paying college tuition you can be deducted from your taxes, too.

Obviously, the tuition has to be coming out of your pocket, not from tax-free savings account for college like a 529 plan.

If you want more advice for US citizens living in the UK and paying tax contact us for an introduction to the right tax expert.

I hope that this helps you with how to reduce self employment tax UK.

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