How Women can Reduce their Tax Bill
Still today, women are behind men when it comes to saving the amount of money they pay out in tax each year. Only 7% of women take any measures to reduce their tax bill according to Prudential and Unbiased, compared to 19% of men.
Of the women that have not tried to cut down their tax bill at all, this research found that just under 50% of them believed that it is just not possible. The biggest difference in the findings came with capital gains tax, with only a third of women taking it into consideration compared to men.
Previous research has found that women are inclined to be better investors than men and that they are better at prioritising the management of savings tax, usually done through the use of ISA’s.
Prudential tax specialist, Les Cameron explains, “Tax planning is an equally important issue for men and women. There are lots of different forms of tax to consider and any potential savings will depend on each person’s individual circumstances.” He continues, “It’s worthwhile remembering that those in couples benefit from double the tax reliefs and allowances available.”
So how can you save that little bit extra on your tax bill?
Here are some expert tax saving tips
Jonathan McColgan from Combined Financial Strategies Ltd says, “If you earn more than £50,000 you start to lose your entitlement to child benefit. However by making a pension contribution you can actually reduce your taxable earnings below this level and so preserve this benefit for your family. Simple but effective!”
Rebecca Aldridge from Balance Wealth Planning adds. “Don’t forget the many potential tax advantages of being in a couple. Your partner has the same capital gains and inheritance tax allowances as you, and if they are in a lower income tax band, then an adviser can help you use this to your benefit as well.”
Lastly, David Penny from Invest Southwest says, “If you are saving for anything at all after the age of 55, consider using a pension. The tax advantages are massive. Even things like mortgage repayment, school or university fees can benefit now that George Osborne has introduced such high levels of freedom. Of course this comes with more responsibility, so getting unbiased advice is more vital than ever.”
So, think about what you are trying to save and how your money is working – talk to a financial adviser who can give you pointers and help work out where you could save on your tax bill.
If you found this article useful, click here for New Tax Allowance For Married Couples