5 Self Assessment Tax Return Tips in 2022

If you are concerned about rising taxes, especially at a time when the cost of living has substantially increased, there are numerous legitimate ways you can reduce your tax bill.

These tax saving tips can save you hundreds and even thousands in tax. There appears to be a lack of awareness, and we will outline five of these tips within this article:

1. Save 100’s by claiming travel expenses

The next time you incur travel related costs you might feel happier knowing that you can claim for these as long as the following criteria are met:

Your place of work is not permanent
You work from home and need to travel to your clients

If you have driven 12,500 business miles in your own vehicle during the past year, the amount you would be entitled to claim would be as follows:

10,000 miles x 45p = £4,500

2,500 miles x 25p = £625

Total you can claim back = £5,125

2. Certain types of work clothes are classed as expenses

Unfortunately, you cannot claim for your entire wardrobe. However, certain professions are allowed to deduct flat rate tax deductions every year for work wear/clothing that is essential for their work. Examples would be safety equipment and uniforms that carry the company logo.

For example, Ambulance staff on active service are allowed to claim up to £185 per tax year. For a bus conductor/driver the figure is £60, this includes the cost of cleaning.

HMRC have a list on their website that you can refer to, even if your profession is not listed you still might be able to get tax relief.

3. Memberships and Subscriptions

Tax relief is available on subscription expenses, such as professional fees or membership fees, or subscriptions to work related literature that is necessary for work.

HMRC has an A – Z list of approved bodies that you can check against, such examples include GMC fees which medical professionals pay.

4. Working from Home (WFH)

If you are one of the many thousands of employed or self-employed people that work from home then you could be entitled to claim for expenses relating to the use of your home. You can use HMRC approved rates or if you prefer, a tailored or bespoke computed claim.

5. Married Couples can also reduce their tax

The Married Couples Allowance is a fantastic way of reducing your tax bill each and every year if you are married or in a civil partnership.

Let us say for example one partner earns less than the personal allowances (this is the amount HMRC says you can earn without paying tax, currently this is set at £12,570), HMRC allow you to transfer 10% of your personal allowance to the higher tax-paying spouse or partner.

Summary

Need help with your Self Assessment tax return? Our experienced accountants in Manchester can help ensure your return is completed accurately, on time, and as tax-efficiently as possible. Call Accounting Solutions Manchester today on 0161 879 7175 for a free, no-obligation consultation.