Tax

Reducing Your Tax Burden: Smart Strategies for High-Tax Areas

No one enjoys paying taxes, especially in metropolitan cities where rates are often steep. Here, we explore strategies to help you reduce your tax burden effectively.

How to Claim Additional Tax Relief on Employee Pension Contributions through HMRC Self Assessment.

Maximize Your Wealth: Claiming Extra Tax Relief on Employee Pension Contributions

Contributing to an employee pension is a smart way to build long-term wealth, as your funds are locked in until retirement, keeping emotional decisions at bay. However, many UK taxpayers are unaware that as a higher-rate taxpayer, you may need to claim an additional 20-25% tax relief through an HMRC Self Assessment depending on your pension setup (confirm with your employer).

Example: If you earn £60,000 in the 2025-2026 tax year and pay 40% tax on £10,000, contributing £15,000 to a private pension grants you automatic tax relief at source. You can then claim an extra 20% tax relief on the £10,000 taxed at the higher rate, which could result in a refund of at least £2,000.

In addition to pension contributions, you may need to file a tax return if you earn over £150,000, have capital gains, rental income, interest on savings, or run a sole proprietorship.

Filling out these forms can be daunting, especially when dealing with HMRC. TaxScouts offer an affordable and stress-free tax return service which may be of interest only.

HMRC Self-Assessment: Simplifying the Process

HMRC Self Assessment: Essential for Your Financial Health

While HMRC Self Assessment may not be the most thrilling task, it's a vital part of managing your finances effectively. By filing your Self Assessment, you ensure you're paying the correct tax on your income, savings, and investments, keeping you fully compliant with UK tax regulations.

Whether you're declaring additional income, self employed, reporting dividends, or paying tax on interest above your Personal Savings Allowance, submitting your Self Assessment on time helps you avoid penalties and maintain financial peace of mind.

Though it may feel tedious, staying ahead of it now will prevent complications down the road. Stay organised, gather your financial documents, and submit your return to keep your finances in top shape.

TaxScouts are experienced accountants who can guide you through the process for as little as £169. This maybe of interest but there are other options out there.