How can I pay less personal tax?

Question

I am a full-time employee in the UK, and am taxed at source at the top rate of about 40% (income tax plus national insurance). How can I pay less tax? Should I become a private contractor/consultant and file my own taxes?

Answer 1

stop working wage slave...or, become self employed, that way everything is tax deductable, even your car., clothes sometimes. depends what you do, and how smart you are. Working for yourself is always a risk, but if you are good at it, it is better than working for someone else. Everything is tax dedudctatble, petrol, even lunches....stick your neck out. If your are good at what you do, you will succeed. And,. not pay as much tax. your accountant will help you to avoid it, not evade it...o.k.

Answer 2

We all know that the ins and outs of tax laws are way too deep for such casual advice. What can anyone here say except a competent tax accountant and/or attorney must tell you how. The good news is such people can usually advise you once, tell you how to put good business practices into place, and then you can run it yourself.

Being an independent contractor or sole proprietor of a business is pretty simple, tax-wise, and it's very much the American Way. This country has always run on the backbone of simple, straightforward small business economy. This, I think, is part of our heritage from England and other "mother countries," since what came here to a substantial extent were people who saw all that open land and said, "farm." They said, "farmers with whom I can do business" (blacksmiths and other craftsmen), and they said other sorts of elbow-room sorts of dreams, and they made them happen. But what they were so crafty about, they learned before they left home. Those are the ones who survived to be our ancestors and yes, I know that's overlooking a lot of detail, but the strong and the crafty, nevertheless. Unfortunately, not always the most honest, but at least we were not . . . no more history lesson.

And it is perfectly honorable to attempt any legal means to reduce your tax burden. I worked for a tax attorney, and that's the first thing I learned. Use any LEGAL means.

Large operations have their place, but most of us prefer to deal locally with people we know. Whether franchise or wholly owned locally, we do that better than the large-scale stuff. Large scale is like that barrel of apples the farmers always tell you about.

Answer 3

Earn less.

Becoming a consultant or contractor would mean you would have to work for more than one company or the inland revenue would take issue with you.
If you can make it work you would be able to claim against your expenses and pay less tax.

Answer 4

Earn less net money. Look for deductions like RRSP's, retirement funds, charitable donations and the like. A private contractor might be able to help you find the ways to cut your net income.

Answer 5

earn less money or start contracting or better still become self employed

Answer 6

make less money