Are you here to know about the multiple easy ways you can adopt to save income tax? If yes, continue reading this article and get the valuable means and ways to save income tax presented by professional accountants High Wycombe in the UK.

The income tax refers to the small portion of one’s income you must pay to the government. Usually, the income tax is paid by the people annually. Then the higher authorities use this money to perform multiple administrative tasks.

Moreover, the government uses the revenue from income tax to provide funding for general public services. These services include NHS, education, and the welfare system. The revenue from income tax is also used for road construction, railways, and housing investment.

An Essential Guide To Safe Income Tax:

The professional accountants at High Wycombe provide the best tax-saving tips to their clients. Because people always look for opportunities to save the income tax. No one likes to miss any options to save money.

Hence, one can get highly productive ways and tax-saving tips. Therefore, by connecting to Total Tax Accountants, one can know more ways to save money paid as income tax.

There can be two ways to save tax in the UK. these are;

  • By Claiming Expenses
  • By Investing In Tax-Saving Instruments.

Ways To Safe Income Tax Legally:

There are different ways to save the tax in the year 2022. The professional accountants at High Wycombe help all the salaried employees and businesses bu pursuing individuals. Besides this, read different points and learn more about the easiest tax-saving tips. These points include;

  • Tax Deduction In Case of Availing Home Loan:

One can save the tax if they are planning their home loan wisely. According to section 80c, the principal amount limit is 1.5 million. Therefore, the interest amount limit will be Rs 2 million, according to section 24.

  • Income Through Savings Account Interest:

One can also save the income tax by holding a saving account. The overall interest earned on the saving account is without taxation for a limit of 10,000 dollars. The amount is cumulative for all the banks. The limit of this amount is extended in the case of senior citizens.

  • Income Through NRE Account Interest:

The NRE accounts provide many facilities to non-UK residents. They can earn interest on the accumulated amount and the total amount they are depositing as a fixed deposit. Such an amount is not taxable at all.

  • Scholarship for Education:

The amount accumulated for scholarships and education is absolutely taxation free. There are no limits in such scenarios. Therefore, one can collect and save money in different institutions for education.

  • Money Received from Life Insurance Policy:

One can receive the amount from a life insurance policy on maturity or on claiming the amount. The amount received from the life insurance policy will be free from all kinds of taxes. Moreover, according to the policies issued before April 1st, the percentage of no tax on insurance policy reduced.

  • Income from Agriculture:

Any income from agricultural land is excepted from tax. Such income can be related to the rent and revenue from the land. Moreover, the amount generated through agricultural products will be free from all taxation.

  • Amount Received Through Inheritance:

The amount one is receiving from the inheritance demands no tax. In other words, one can say that there will be no taxation on the amount received from an inheritance.