Black Friday – 3 Alternative Ways To Save Money

Black Friday – 3 Alternative Ways To Save Money

You may have woke up this morning to a flurry of emails clogging up your inbox advertising the amazing savings retailers are offering for Black Friday.

If you are looking for alternatives ways to save money, try these 3 simple things:

  1. Make a pension contribution.

You can receive up to 45% pension tax relief for this tax year (2017/2018) when you make a pension contribution.

Basic, higher and top rate taxpayers all benefit – the higher your rate of tax, the more tax relief you could receive.

A quick example:

  • You contribute £800 into your pension.
  • The government adds £200, to make a total pension contribution of £1,000.
  • Higher and top rate taxpayers can then claim back even more via their tax return. £1,000 in a pension could cost a 40% rate taxpayer as little as £600 and a 45% rate taxpayer as little as £550.
  1. Use your ISA allowances

You can save tax-free with Individual Savings Accounts (ISAs).  In the current tax year the maximum you can save is £20,000.

If you hold shares or investments outside of ISAs you ought to consider moving them across into an ISA to benefit from the tax efficient returns.

  1. Share or transfer your Married couples allowance

If you are married or in a civil partnership you may be entitled to a £662 tax break called the marriage tax allowance. It’s free money, so definitely worth looking at.

The marriage tax allowance is a way for couples to transfer a part of their personal allowance (the amount you can earn tax-free each tax year) between them.

The rules:

  • You must be married or in a civil partnership.
  • One of you needs to be a non-taxpayer, which means earning less than £11,500 during the current tax year.
  • The other partner needs to be a basic rate taxpayer (20%). This means earning less than £45,000 during the current tax year.
  • Both of you must have been born after 6 April 1935.