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To ask for ideas on how to pay less tax

(164 Posts)
FleetwoodMacNCheese Wed 20-Sep-17 13:25:27

I earn £55k. Don't live in London. My take home is less than £40k per annum.

I've got a huge mortgage, long drive to work therefore spend a fortune on fuel. Is there a legal way I can reduce my tax as I really need to start saving for retirement. Could I ask for part of my salary to be paid in dividends as I've heard less tax is/NIC are paid on these?

Any ideas much appreciated.

ghostyslovesheets Wed 20-Sep-17 13:29:06

Earn less?

nicewaterfeature Wed 20-Sep-17 13:30:19


Hilda40 Wed 20-Sep-17 13:31:18

Fuel is heavily taxed. Get house and job closer together.

DeepfriedPizza Wed 20-Sep-17 13:31:23

Get a cheaper house or a new job closer to home in order to save money.

You grabby bastard

Penny4UrThoughts Wed 20-Sep-17 13:31:29

Yes, earn less or pay more into your pension.

megletthesecond Wed 20-Sep-17 13:31:37


puglife15 Wed 20-Sep-17 13:32:18

You earn £55k and don't live in London. Do you live under a bridge?

YABU. Taxes serve a purpose. Ask for a pay rise if you need more money. Or move closer to work too cute commuter costs.

Tilapia Wed 20-Sep-17 13:33:16

Let's hope you don't need to be supported by the welfare state later in life!

Badbadbunny Wed 20-Sep-17 13:33:50

Could I ask for part of my salary to be paid in dividends as I've heard less tax is/NIC are paid on these?

That boat sailed long ago. There's now anti-avoidance in place to stop artificial schemes like that. These days you have to be a genuine shareholder to get dividends and they have to be linked to your investment in the company, it's profits, etc., and NOT linked to the work you do personally.

minipie Wed 20-Sep-17 13:34:28

You can't get paid in dividends unless you are a shareholder in the business.

Lift share and split the fuel?

Userwhocouldntthinkofagoodname Wed 20-Sep-17 13:34:43

Can you go self employed and sub contract yourself to your employer? Then you could write off fuel as a work expense.

FleetwoodMacNCheese Wed 20-Sep-17 13:34:44

Hilda - yes, I know fuel is heavily taxed (hence I feel not so guilty about trying to pay less income tax). Moving house or job not an option.

piknmixer Wed 20-Sep-17 13:34:47


Hillarious Wed 20-Sep-17 13:34:53

Move closer to work, then you'll be spending less on fuel duty.

Dippingmytoesin Wed 20-Sep-17 13:36:08

They REALLY need an eye roll emoji on here

FleetwoodMacNCheese Wed 20-Sep-17 13:39:11

Badbadbunny - would I have to invest money into the company or could the directors give me some shares?

Userwhocouldntthink - you can't work exclusively for one company if you're self employed, can you?

Bizzysocks Wed 20-Sep-17 13:40:32

The amount you pay into your pension isn't taxed so for every £1 you put in it only costs you 60 pence.

If you paid £5K in to your pension you would then fall under the limit to claim full child benefit (unless you dh earns over £50k) which would make up some of your reduced income from paying into your pension.

FleetwoodMacNCheese Wed 20-Sep-17 13:40:36

Piknmixer - if by 1/10 you're troll hunting, report my thread to MNHQ.

lookingbeyond40 Wed 20-Sep-17 13:41:15

Just pay your tax and stop trying to cheat the system. Assuming you use council services, NHS?

I find your attitude abhorrent. My partner earns what you do and is quite happy to pay his taxes. We have two children with autism and save for them accordingly out of the remainder whilst privately paying for therapies as we have no fucking choice. Tax avaders don't help cuts to these vital NHS services.

Suck it up. You'll cope.

slbhill42 Wed 20-Sep-17 13:41:52

I know fuel is heavily taxed (hence I feel not so guilty about trying to pay less income tax)

Income tax and fuel tax have nothing to do with each other. They fund different things.

Buy an electric car, then you can reduce the tax you pay on fuel.

But yes yabu (or possibly a troll because really who needs to ask if tax avoidance is unreasonable??)

lookingbeyond40 Wed 20-Sep-17 13:42:14

I'm not an angry person but this post has made me livid.

redthunder123 Wed 20-Sep-17 13:43:28

This is by far the worst thread I have seen on here... and that is saying something!

£3281 after tax not including any pension or SL deductions.

Sell your house or offset savings against your mortgage to reduce the cost or move closer to work.

Dividends not possible if your a perm employee on PAYE.

Write down a list of your outgoings and see what you could reduce. set up a separate current account for day to day spending which you transfer a set amount of and use your main solely for DD's and bills.

Some people don't have 55K salary between two. You wont get much sympathy here.

TheNaze73 Wed 20-Sep-17 13:43:45

I'd speak to an accountant.

There are lots of things you can do. I do feel for you, any whiff of success in this country & you're taxed.

45% at over £150k is hardly an incentive to better yourself.

FleetwoodMacNCheese Wed 20-Sep-17 13:43:55

Bizzy - don't have a pension at the moment (I know, I know). Can I start one which would benefit DP in retirement if I died first? My workplace offer good death in service payout.

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