35 ways to save on tax

Find out how to pay less tax, including checking your tax code, making the most of tax-free allowances and dozens of other ways to reduce your tax bill.

 

Danielle Richardson

Last updated: May 2022

In this article

How to pay less taxReduce your income taxEmployee tax benefitsCut tax on your savingsPay less tax if you're self-employed

 

Cut your investments tax billSave on property income taxTax savings for older peopleCharity tax savings

How to pay less tax

There are lots of ways to reduce your tax bill legally, whether you're an employee or self-employed, a landlord, investor or pensioner.

We explain how simple checks could boost your take-home earnings with minimal effort, and how to take advantage of tax reliefs and government schemes.

Here are 35 simple tips and tricks that can help you cut your tax bill to put more pounds in your pocket.

• Get a head start on your 2021-22 tax return with the Which? Tax Calculator. Tot up your bill, get jargon-free, money-saving tips and submit your return direct to HMRC.

Reduce your income tax

Let's start with five of the most simple ways to save tax on your earnings.

1. Check your tax code

Your tax code indicates how much tax HMRC will collect from your salary. You can find it on your payslip.

Check your tax code each year, or after changing jobs, to make sure it's correct for your situation. Find out the most common ones in our guide to understanding your tax code.

If you're on the wrong code, you may be entitled to pay less tax in coming months, or receive a refund for previous years.

2. Claim tax credits

Tax credits provide extra money to those looking after children, disabled workers and other workers on low incomes.

The two main types you can claim: working tax credit and child tax credit.