HR Payroll Service : How to reduce your Tax / NI liability
How to pay less Tax and National Insurance on your salary
How to reduce your Tax / NI liability
There are many ways in which to reduce the amount of Tax and NI you pay on your salary. Below are a few of the most popular options:
Join one of our pension schemes - pension contributions are tax and NI free and you will pay a lower rate of NI on the remainder of your earnings if you are in one of our final salary pension schemes.
Claim child care vouchers - if you are eligible to claim child care vouchers from KiddiVouchers they are tax and NI exempt up to £243 per month. You should check whether childcare vouchers or tax credits offer the best value for money for you (or a combination of the two). Contact HMRC for further details.
Workplace Nursery – UCL has a workplace nursery. If you place your child here and are eligible to enter the salary sacrifice scheme, you will have your salary reduced to the monthly cost of the nursery facility. You will save tax and NI on the full amount of your nursery fees. There is no upper limit.
Cycle Scheme – Through joining the UCL cycle scheme you can make savings on the amount of tax and NI payable to the value of the bike.
Give As You Earn – You can give to a registered charity through the payroll free from tax deductions.
If you are over the State Retirement age you no longer have to pay NI employee contributions. You should apply to HM Revenue and Customs for a Certificate of Age Exception and send it in to Payroll Services as soon as possible. Alternatively, you can send a copy of another document with proof of age, i.e. Birth Certificate, Driving Licence or Passport, that has been verified by your department. If you are over 65 you may also be entitled to higher Tax allowances, if so, make sure that Revenue and Customs have given them to you!
Subscriptions and professional fees. If you pay for these yourself, look into HMRC web pages to see if you are able to claim tax relief on the value.