Basic Tax Tips for
UK Taxpayers
your tax liability legally and efficiently
Understanding UK Tax Efficiency
Tax planning is about arranging your financial affairs efficiently and legally to minimise
your tax liability. Whether you’re self-employed, a limited company director, or an
employee, there are numerous ways to reduce your tax burden whilst remaining fully
compliant with HMRC regulations.
The key to successful tax planning is staying informed, keeping accurate records, and
seeking professional advice when needed. Below are essential tax tips that every UK
taxpayer should know.
Essential Tax-Saving Strategies
Practical tips to help you reduce your tax liability and keep more of your hard-earned money
Maximise Your Personal Allowance
- Ensure you're claiming your full personal allowance of £12,570 for the 2024/25 tax year
- Be aware that your personal allowance reduces by £1 for every £2 you earn over £100,000
- Consider splitting income with your spouse or civil partner to maximise both allowances
- If you're self-employed, ensure you're claiming all legitimate business expenses
Pension Contributions
- Contribute to a pension scheme to receive tax relief at your marginal rate
- The annual allowance for pension contributions is £60,000 for most people
- Higher rate taxpayers can claim additional relief through their self-assessment tax return
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Consider carrying forward unused allowances from previous three years
ISAs and Tax-Free Savings
- Use your annual ISA allowance of £20,000 to shelter savings and investments from tax
- Consider a Lifetime ISA if you're saving for your first home or retirement (up to £4,000 per year with 25% government bonus)
- Junior ISAs allow you to save up to £9,000 tax-free for children
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- ISA investments grow free from income tax and capital gains tax
Keep Accurate Records
- Maintain detailed records of all income and expenses for at least six years
- Keep receipts, invoices, and bank statements organised
- Use accounting software to track your finances in real-time
- Separate business and personal finances with dedicated bank accounts
- Digital records are acceptable for HMRC purposes
Claim All Allowable Expenses
- Working from home? Claim £6 per week without receipts, or actual costs with evidence
- Vehicle expenses: claim 45p per mile for first 10,000 miles, then 25p per mile
- Professional subscriptions and training directly related to your work
- Business proportion of utility bills if working from home
- Professional indemnity insurance and relevant business insurance
Capital Allowances
- Claim Annual Investment Allowance (AIA) of up to £1 million on qualifying plant and machinery
- 100% first year allowance on electric vehicle charging points
- Enhanced capital allowances for energy-efficient equipment
- Structure and Buildings Allowance at 3% per year on commercial property costs
- Consider timing of purchases to optimise tax relief
Company Formation
Forming a company has to be done in accordance with strict Companies House requirements and it may be a new experience for you. Before you start our formation process you will need to pick a unique company name. Followed by a quick search in the existing Companies House registration database, our expert accountants can form a company for you within hours.
Our experienced accountants can also register your new domain and set up your company email address for you to start communicating using your new business identity straightway. We can also assist you with opening your new business bank account, once again usually on the same day.
Company Secretarial
In today’s fast-paced business environment, directors are increasingly focused on driving growth and managing core operations. As a result, less time is available for administrative responsibilities-yet these duties remain essential.Since April 2008, private limited companies are no longer legally required to appoint a company secretary unless specified in their Articles of Association. However, the responsibilities traditionally managed by a company secretary- such as shareholder communication, corporate governance, and statutory compliance-still need to be fulfilled. Without a company secretary, these obligations fall directly on the directors, creating additional pressure and increasing the risk of oversight. Many companies therefore continue to appoint a secretary to ease the administrative burden and ensure compliance.At AHN Accountants, we ensure that all statutory requirements under the Companies Act and your company’s Articles of Association are fully met. This includes preparing and filing statutory forms, as well as drafting accurate documentation to record decisions made by directors and shareholders. We also manage the company secretarial tasks that often catch businesses off guard, including maintaining statutory registers, completing annual returns, organising AGMs, handling share transfers, and managing dividend documentation. With our support, you can stay compliant and free up valuable time to focus on running your business effectively.
Essential Tax-Saving Strategies
Practical tips to help you reduce your tax liability and keep more of your hard-earned money
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
- Decide on the most suitable structure for your business (Sole trader / Partnership / Limited company)
- Prepare a business plan, cashflow projections, budgets & trading forecasts
- Opening and setting up a good working relationship with your bank
- Fulfil the compliance requirements with Companies House and HM Revenue & Customs
- Looking after employee requirements
Company Formation
Forming a company has to be done in accordance with strict Companies House requirements and it may be a new experience for you. Before you start our formation process you will need to pick a unique company name. Followed by a quick search in the existing Companies House registration database, our expert accountants can form a company for you within hours.
Our experienced accountants can also register your new domain and set up your company email address for you to start communicating using your new business identity straightway. We can also assist you with opening your new business bank account, once again usually on the same day.
Company Secretarial
In today’s fast-paced business environment, directors are increasingly focused on driving growth and managing core operations. As a result, less time is available for administrative responsibilities-yet these duties remain essential.Since April 2008, private limited companies are no longer legally required to appoint a company secretary unless specified in their Articles of Association. However, the responsibilities traditionally managed by a company secretary- such as shareholder communication, corporate governance, and statutory compliance-still need to be fulfilled. Without a company secretary, these obligations fall directly on the directors, creating additional pressure and increasing the risk of oversight. Many companies therefore continue to appoint a secretary to ease the administrative burden and ensure compliance.At AHN Accountants, we ensure that all statutory requirements under the Companies Act and your company’s Articles of Association are fully met. This includes preparing and filing statutory forms, as well as drafting accurate documentation to record decisions made by directors and shareholders. We also manage the company secretarial tasks that often catch businesses off guard, including maintaining statutory registers, completing annual returns, organising AGMs, handling share transfers, and managing dividend documentation. With our support, you can stay compliant and free up valuable time to focus on running your business effectively.
Important Reminders
- Self-Assessment Deadlines:
31 January for online returns (previous tax year) and payment of tax due. 31 July for second payment on account.
- VAT Returns:
Usually quarterly, one calendar month and seven days after the end of your VAT period.
- Corporation Tax:
Due nine months and one day after the end of your accounting period.
- Seek Professional Advice:
Tax regulations change frequently. Always consult with a qualified accountant for personalised tax planning advice.
