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:
- 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.
- 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.
- 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.
- 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.