Accountants in London

Tips for Salaried Employees to Save Taxes

Do you want to know how to save tax since there are numerous ways of saving tax? Have you been feeling that you have been paying excess tax and if you had paid better attention you might have been able to save tax? There are numerous ways in which an individual can save on taxes, and some of these ways have been discussed below:

Salary restructuring

There might be numerous expenses that you are paying for due to your job. If you leave this job today, you will realise that you will be able to get rid of certain expenses. Like an Accountants for startup, you will realise that there are not many expenses that you need to cover. For example, you wear the uniform to work and make it appear presentable only for your job. You travel daily only to get to work and you might be spending extra entertaining clients as a part of your job.You may be going through certain books and magazines only to keep up with what goes on at work. If you were to quit the next day, you would be able to save regarding all these aspects.

Since, these are not your expenses and are incurred by the job; your employer should pay for it.These expenses should be assigned to employer’s expense and should not be added as a part of your income. You should be getting perks and allowances for these tasks and better yet if your Accountants in London can help you in the whole job.Since, these perks and allowances can be taxedone needs tooffer prove that these are tax free allowances.

Travel allowances

Certain personal expenses can be considered for exemption and there expenses are deducted from your gross salary.A certain amount might be provided to you for medical expenses andcan beavailed byproducing medical bills making them allowance free.

Employers should provide travel allowances. These allowances can be availed only a few times in a couple of years. The travelling should occur on the day when you are on leave.The route taken for the journey should be the shortest route from all possible options so that it can be covered who travel allowance.

Rent payment

When individuals work in other towns and have to rent a home to stay in the city where they are working. The cost of accommodation should be deducted from taxable income.