If you're an employee, check your tax
17 April 2007
The Inland Revenue produce an instruction to your employer called a "Notice of Coding", which is used as the basis for making deductions from your pay. You'll receive a copy with an explanation of the calculations. Examine it carefully. If you don't receive one each year, remember to ask for it to be sent to you.
If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.
If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.
Next: Use your capital gains tax allowance
If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.
If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.
Next: Participate in share incentive plans" name="text" />
If your deductions are not being made on the basis of a correct Notice of Coding, it is possible that your employer is deducting more tax than necessary. Check this with your tax office and ask for the appropriate form so that you can apply for a correct coding.
If you have a company car and your employer pays for any of your private petrol, check the current fuel scale charges. You may find changing to a car with a slightly smaller engine will save you a lot of tax – or you may even be better off paying for your own petrol in exchange for a pay rise equal to what your employer is currently paying you for your petrol.
Next: Participate in share incentive plans" name="text" />
Advertisement
Spread Trading. New from Halifax Share Dealing
£100 credit when you open five trades within 60 days – terms apply. Spread Trading is not for everyone please ensure you understand the risks as you may lose more than your initial deposit. Click here for more information.
The TaxGuide.co.uk has a wealth of tips and advice from working out your tax bill, through to the latest personal tax rules. Get your personal tax tips today.
FREE Report: Inside Investment Trusts
Written by the team behind What Investment, this exclusive FREE report covers:
- Why Investment Trusts are better than Unit Trusts
- How new legislation is broadening the appeal of Investment Trusts
- Where to look for buying opportunities
- Why now is the time to buy Investment Trusts
- The Investment Trusts to invest in at the moment


Comments
Please register or login to comment on this article.