Most people overpay tax not through anything dramatic, but by missing the everyday reliefs they're entitled to. Here are twelve completely legitimate ways to bring your bill down.
- Claim every allowable expense. The single biggest lever for the self-employed — anything spent “wholly and exclusively” for your business reduces your taxable profit.
- Use the home-working and mileage allowances. Claim a share of household costs for working from home, and 45p/25p per mile (55p from April 2026) for business journeys.
- Pay into a pension. Personal pension contributions get tax relief at your highest rate — one of the most effective ways for higher earners to cut tax while building for later.
- Claim Gift Aid on donations. Higher and additional-rate taxpayers can reclaim the difference between basic rate and their rate through their tax return.
- Transfer the Marriage Allowance. If one partner earns under the personal allowance, they can transfer £1,260 of it to a basic-rate-paying spouse — worth up to £252 a year.
- Use your ISA allowance. Up to £20,000 a year can be sheltered so interest, dividends and gains grow tax-free.
- Don't waste your dividend and savings allowances. The £500 dividend allowance and Personal Savings Allowance let you receive some investment income tax-free each year.
- Use the £1,000 trading allowance. If you have small amounts of casual or side income, the first £1,000 can be tax-free.
- Claim capital allowances. Equipment, tools and certain vehicles can be written off against profits, often in full via the Annual Investment Allowance.
- Time your income and expenses. Bringing forward a purchase or deferring income across the 5 April year-end can keep you under a threshold or smooth your tax.
- Pay yourself tax-efficiently (if you run a company). A considered mix of salary and dividends usually beats taking everything as salary.
- Reclaim tax you've overpaid. CIS deductions, the wrong tax code, or stopped work mid-year often mean you're owed a refund — check.
- Get a once-a-year review. A short planning conversation before 5 April often pays for itself many times over.
Tax avoidance schemes that sound too good to be true usually are. Everything above is HMRC-sanctioned — that's the point. If in doubt, ask a qualified accountant.
The easiest win of all
Good records. You can't claim what you don't track. Logging income and expenses as you go — rather than scrambling in January — is what turns all of the above from “meant to” into money saved.
See your tax fall in real time
Track income and expenses with Basetax and watch your estimated tax update live, so you never miss a deduction.
This guide is general information, not personal tax advice. Allowances shown are for the 2025–26 tax year and can change — ask our team about your situation.