{"id":21286,"date":"2023-02-15T11:08:17","date_gmt":"2023-02-15T11:08:17","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=21286"},"modified":"2025-09-11T13:52:04","modified_gmt":"2025-09-11T12:52:04","slug":"9-uk-tax-saving-tips-for-the-cost-of-living-crisis","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/9-uk-tax-saving-tips-for-the-cost-of-living-crisis\/","title":{"rendered":"9 UK tax saving tips for the cost of living crisis"},"content":{"rendered":"\n<p>As if covid weren\u2019t difficult enough, just two years later we\u2019re living through more tough times &#8211; an official cost of living crisis. \ud83d\ude43<\/p>\n\n\n\n<p>Whilst tax isn\u2019t everyone\u2019s favourite domain (especially during these unprecedented times), there are a few ways to make tax work for you instead of being an extra pain in the derri\u00e8re.<\/p>\n\n\n\n<p>Here are 9 UK tax saving tips for the cost of living crisis!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Check your tax code<\/h2>\n\n\n\n<p>You\u2019d be surprised how many people are overpaying tax simply due to an incorrect tax code.&nbsp;<\/p>\n\n\n\n<p>It could take HMRC some time before they realise your tax code is incorrect. So it\u2019s worth giving them a quick call to check yourself.<\/p>\n\n\n\n<p>Underpaying tax is another reason to check your tax code. In a cost of living crisis, paying less tax sounds ever-so appealing. But being hit with a hefty fine due to underpaying is a lot worse.<\/p>\n\n\n<div data-react=\"tooltip-provider\"><\/div>\n\n    <div class=\"c-block-calculator\">\n\n    <div class=\"c-block-calculator__container\">\n\n\n    <div data-react=\"tax-code-calculator\" data-options='{\n        \"title\": \"Tax code calculator\",\n        \"lead\": \"\"\n    }'>\n        <!-- Default calc code -->\n\n        <div class=\"sc-giYgFv fzUHXQ\"><div class=\"sc-ezbkgU bcxCiI\"><div class=\"sc-bYoCmx RakSM\"><div width=\"100%\" aria-expanded=\"false\" class=\"DropdownSelect__Container-sc-1iiysit-0 evEFoA\"><button width=\"100%\" class=\"DropdownSelect__LabelContainer-sc-1iiysit-1 egNJwI\"><span class=\"DropdownSelect__Label-sc-1iiysit-2 loOBxi\">Tax year 2024\/25<\/span> <span class=\"DropdownSelect__Arrow-sc-1iiysit-3 hcHQYJ\">\u25bc<\/span><\/button><\/div><\/div><\/div><div class=\"sc-dPiKHq jvrqXK\"><div class=\"sc-bBHHQT eyRCSV\"><h3 class=\"sc-khQdMy idLFkV\">Your situation<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMzQiIGhlaWdodD0iNzYiIHZpZXdCb3g9IjAgMCAzNCA3NiIgZmlsbD0ibm9uZSIgeG1sbnM9Imh0dHA6Ly93d3cudzMub3JnLzIwMDAvc3ZnIj48cGF0aCBkPSJNMzIuMjUgMzQuOTMzNVYxLjg0OTYxSDIwLjE0OTlDMTcuNzQ5OSA5LjA0OTYxIDExLjA1IDEzLjY0OTYgMS43NSAxNC4xNDk2VjI2Ljk0OTZDNy45NSAyNi45NDk2IDEzLjg0OTkgMjUuMDQ5NiAxNy44NDk5IDIxLjg0OTZWMzQuOTMzNU0xNy44NDk5IDU1LjUxODhWNzQuMDQ5NkgzMi4yNVY1OS40OTQ1VjU1LjUxODgiIHN0cm9rZT0iYmxhY2siIHN0cm9rZS13aWR0aD0iMiIgc3Ryb2tlLWxpbmVjYXA9InJvdW5kIiBzdHJva2UtbGluZWpvaW49InJvdW5kIi8+PC9zdmc+\" alt=\"Outlined number one\" class=\"sc-cNKpQo gvneOt\"><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Image of an arrow\" class=\"sc-AjmZR ctylzc\"><\/div><div class=\"sc-hUpaWb\"><form><div class=\"sc-kLwgWK gVgARU\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">Tax code <div class=\"sc-eJwXpk byFCvI\"><span data-hint-default=\"Not sure what your tax code is? Check HMRC online or a recent PAYE coding notice, payslip, P45, P60 or pension advice slip\"><div class=\"sc-nVjpj eKPbQR\">?<\/div><\/span><\/div><\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><div class=\"Input__Container-sc-11yg3hb-0 jiJACg\"><input name=\"taxCode\" class=\"Input__InputElement-sc-11yg3hb-1 hA-dEwl\"><\/div><\/div><\/div><div class=\"sc-kLwgWK gVgARU\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">Annual salary<\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><div class=\"Input__Container-sc-11yg3hb-0 jiJACg\"><input type=\"number\" min=\"0\" pattern=\"[0-9]*\" name=\"annualIncome\" class=\"Input__InputElement-sc-11yg3hb-1 gvuJbz\"><div class=\"Input__Suffix-sc-11yg3hb-4 eEnjn\">\u00a3<\/div><\/div><\/div><\/div><button disabled=\"\" type=\"button\" class=\"Button__Container-sc-1yfsg4-0 bsATTQ\"><div class=\"Loadable__Container-sc-113zh66-0 boOZMZ\"><div class=\"Loadable__Overlay-sc-113zh66-1 eNpsGm\"><div class=\"Loadable__SpinnerContainer-sc-113zh66-3 ixfJxf\"><div role=\"progressbar\" aria-busy=\"true\" aria-live=\"polite\" color=\"#003cd7\" class=\"Spinner__Container-sc-1v52frf-0 epXYIp\"><\/div><\/div><\/div><div class=\"Loadable__Content-sc-113zh66-2 dfBZsX\">Calculate<\/div><\/div><\/button><\/form><\/div><\/div><div opacity=\"1\" class=\"sc-jgrIVw gcVyeu\"><div class=\"sc-gSQGeZ mqvVl\"><h3 class=\"sc-iNGGwv dFrXnM\">Results<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Outlined number two\" class=\"sc-lbhJmS hQoEOj\"><\/div><div class=\"sc-jeqYYF fOQSYu\"><ul class=\"sc-gWXaA-D byUbmH\"><li class=\"sc-cCcYRi TgcgA\"><div class=\"sc-iUKrWq jFZeFw\">PAYE earnings<\/div><div class=\"sc-efQUeY cGxXVa\">\u00a349,000<\/div><\/li><\/ul><\/div><\/div><div class=\"sc-dJjZJu isonvD\"><button class=\"sc-hGPAah fmpGnU\"><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Illustration\" class=\"sc-dlVyqM lhOciq\"><div class=\"sc-kfPtPH\"><div class=\"sc-fKVsgm kAXsua\">Calculation details<\/div><div class=\"sc-bBHwJV jdTgMA\"><span>Click here<\/span> to show how we&#8217;ve calculated your taxes<\/div><\/div><\/button><div class=\"sc-iwjezw jVHDsA\"><div class=\"sc-cTApHj\"><div class=\"c-body m-smaller\"><h2>How your tax code is calculated<\/h2><p>There are three main components that determine your tax code:<\/p><ul><li>What you earn<\/li><li>Allowances you&#8217;re claiming<\/li><li>Your tax-free allowances<\/li><\/ul><\/div><\/div><\/div><\/div><\/div>\n\n        <!-- END Default calc code -->\n    <\/div>\n\n\n    <\/div> <!-- .c-container -->\n<\/div> <!-- .c-block-calculator -->\n\n\n\n\n\n<h2 class=\"wp-block-heading\">2. Claim council tax reductions<\/h2>\n\n\n\n<p>It\u2019s no secret that council tax has skyrocketed this year (along with pretty much everything else). There are two ways you may be able to save on council tax:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Council tax reduction<\/li>\n\n\n\n<li>Council tax rebate<\/li>\n<\/ol>\n\n\n\n<p>The council tax reduction depends on your circumstances. Your bill could be reduced by up to 100% if you\u2019re:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A low earner (if you earn less than \u00a395 per week)<\/li>\n\n\n\n<li>Claiming benefits<\/li>\n<\/ul>\n\n\n\n<p>Other factors taken into account are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Where you live<\/li>\n\n\n\n<li>Your income<\/li>\n\n\n\n<li>Whether you have any dependents<\/li>\n\n\n\n<li>Your residency status<\/li>\n<\/ul>\n\n\n\n<p>Secondly, the council tax rebate came into effect when the UK government was eventually forced to address the cost of living crisis.&nbsp;<\/p>\n\n\n\n<p>The requirements to receive the \u00a3150 rebate is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You paid council tax on your main home 1st April<\/li>\n\n\n\n<li>Your home is in band A-D&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You may also be entitled if you\u2019re:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A student<\/li>\n\n\n\n<li>Have severe mental impairment (such as Alzheimer\u2019s or Parkinson\u2019s disease)<\/li>\n\n\n\n<li>Have an annexe where a dependent relative lives<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. Reclaim tax-free childcare<\/h2>\n\n\n\n<p>Childcare is expensive. Point blank. For a child under two to attend nursery every day, parents could easily see themselves paying at least&nbsp; \u00a3200 per week. That\u2019s \u00a3800 a month!&nbsp;<\/p>\n\n\n\n<p>Now if you have two under two\u2026 ok, you get the point.<\/p>\n\n\n\n<p>You may be able to claim up to \u00a3500 every three months (per child) to <a href=\"https:\/\/www.gov.uk\/tax-free-childcare\" target=\"_blank\" rel=\"noreferrer noopener\">help with childcare costs<\/a>. You claim more if your child has a disability.<\/p>\n\n\n\n<p>\ud83d\udea8 Wait, it doesn\u2019t end there! \ud83d\udea8<\/p>\n\n\n\n<p>If your child is between 3 and 4, you could also get <a href=\"https:\/\/www.gov.uk\/30-hours-free-childcare\" target=\"_blank\" rel=\"noreferrer noopener\">30 hours of free childcare<\/a>.<\/p>\n\n\n\n<p>Your eligibility to apply for either depends on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your income&nbsp;<\/li>\n\n\n\n<li>Your partner\u2019s income (if applicable)<\/li>\n\n\n\n<li>Your child\u2019s age&nbsp;<\/li>\n\n\n\n<li>Your immigration status<\/li>\n\n\n\n<li>Your childcare provider<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">4. Check you\u2019ve not overpaid taxes \u200b\ud83e\udd1e\u200b<\/h2>\n\n\n\n<p>What better feeling than that brown envelope coming through the post stating you\u2019re owed a tax refund? *chef\u2019s kiss*<\/p>\n\n\n\n<p>Overpaying the tax you owe is actually fairly common and could be the result of changing jobs, being out of work for some time, going from an employee to self-employed and many more.<\/p>\n\n\n\n<p>HMRC aren\u2019t always quick to fix their mistakes. Which means tax rebates aren\u2019t always automatic. The best way to find out whether you\u2019re owed a rebate is to check. You can do this <a href=\"https:\/\/www.gov.uk\/claim-tax-refund\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Utilise your marriage allowance if possible<\/h2>\n\n\n\n<p>Now this isn\u2019t applicable for everyone &#8211; but if you\u2019re married it\u2019s worth checking.<\/p>\n\n\n\n<p>If you pay tax at the basic rate of 20% and your partner earns less than \u00a312,570 (and doesn\u2019t pay income tax due to this), they may be able to transfer some of their personal allowance to you.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your partner can transfer you \u00a31,260 of their personal allowance<\/li>\n\n\n\n<li>You must be married or in a civil partnership<\/li>\n\n\n\n<li>You must pay 20% tax; this is not available to those in the higher or additional tax band<\/li>\n\n\n\n<li>You both have to be born after 1935<\/li>\n<\/ul>\n\n\n\n<p>All of a sudden, marriage doesn\u2019t sound like a traditional construct designed to uphold the patriarchy anymore, right?\ud83d\ude2c<\/p>\n\n\n\n<p>We joke. But seriously, the tax benefits can be significant so don\u2019t let them pass you by!&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">6. Make use of the starter rate for savings (if applicable)<\/h2>\n\n\n\n<p>If you earn less than \u00a317,570, you may be entitled to \u00a35,000 of interest on any savings without having to pay tax on it. This is your <a href=\"https:\/\/www.gov.uk\/apply-tax-free-interest-on-savings\" target=\"_blank\" rel=\"noreferrer noopener\">starting rate for savings<\/a>.<\/p>\n\n\n\n<p>Confused? Here\u2019s a quick example:<\/p>\n\n\n\n<p>You earn \u00a312,000 a year working part-time in the local coffee shop. Because your earnings are less than your personal allowance entitlement of \u00a312,570 &#8211; you will be able to earn up to \u00a35,000 in interest from savings without paying any tax on it.&nbsp;<\/p>\n\n\n\n<p>Now you\u2019re probably thinking \u2018what if I earn more than the threshold?\u2019<\/p>\n\n\n\n<p>If you earn more than \u00a317,570, you won\u2019t be entitled to the starter rate for savings. If your income is less than this, the following rule applies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Every \u00a31 of other income (wages, pension etc) above your personal allowance (\u00a312,570) reduces your starting rate for savings by \u00a31&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">7. Claim tax deductible expenses if self-employed<\/h2>\n\n\n\n<p>If you\u2019re self-employed, you may be familiar with tax deductions. If not, you\u2019ll want to get familiar!<\/p>\n\n\n\n<p>Claiming allowable expenses will reduce your tax bill. Of course, not everything is expensable so it\u2019s best to <a href=\"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/self-employed-claimable-expenses\/\" target=\"_blank\" rel=\"noreferrer noopener\">check what you can expense<\/a> &#8211; otherwise, you may be unknowingly committing tax fraud.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what happens when you earn over \u00a3100k?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/w-GPwMmk_Xk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">8. Reduce your taxable income with company perks<\/h2>\n\n\n\n<p>Employees may be able to benefit from company perks you didn\u2019t even know existed. <\/p>\n\n\n\n<p>Have you asked your employer if they offer:<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p><!-- wp:paragraph --><\/p>\n<p><strong>A tax-free season ticket loan<\/strong><\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>A tax-season ticket loan could save you hundreds of pounds on your commute. This may cover the cost of taking the tram, bus or tube to work. Some even cover the cost of parking.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p><strong>Salary sacrifice<\/strong><\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Some companies offer salary sacrifices; this means you can accept part of your wages in alternative form. How about a company car instead? Or perhaps childcare vouchers?<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Accepting non-cash benefits will reduce your salary. And in short, less <em>cash <\/em>money = less taxable income.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p><strong>Bonus sacrifice<\/strong><\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>If your company has performed well throughout the year, then you may be expecting a bonus. The good news is &#8211; well, it\u2019s a bonus! The not-so-amazing news is that bonuses are taxable and could potentially even push you into a higher tax bracket.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Some employers offer bonus sacrifices &#8211; where you pay your bonus into a pension instead of your bank account. This is a tax-efficient way to save for the future and avoid extra income tax.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">9. Meet the self assessment tax return deadline<\/h2>\n\n\n\n<p>In a cost of living crisis (or on any other day, to be honest) no-one wants to receive a fine from HMRC. Especially for something that can be easily avoided.<\/p>\n\n\n\n<p>For that reason, if you\u2019re self-employed, 31st January should be the most important day of the year (after your birthday, of course \ud83d\ude0c). This is the deadline to file online, but if you\u2019re doing a paper tax return, you have until 31st October. \u23f1\ufe0f<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">Key dates in the current <\/span><b>2025\/26 tax year \ud83d\udc47<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Deadline<\/b><\/td>\n<td><b>Date<\/b><\/td>\n<td><b>Year<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year starts<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year ends<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Register for self assessment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th October<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pay tax bill by PAYE salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30th December<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Self assessment deadline<\/span><\/td>\n<td><span style=\"font-weight: 400;\">31st January<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>If you\u2019d prefer, <a href=\"https:\/\/taxfix.com\/en-uk\/self-assessment-tax-returns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Taxfix<\/a> can file your tax return on your behalf.<\/p>\n\n\n\n<p>We also have a range of resources available if you want to know more about important dates and deadlines if you\u2019re self employed &#8211; start with this <a href=\"https:\/\/taxfix.com\/en-uk\/self-assessment-basics\/uk-tax-year-dates-and-filing-deadlines\/\" target=\"_blank\" rel=\"noreferrer noopener\">guide<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As if covid weren\u2019t difficult enough, just two years later we\u2019re living through more tough times &#8211; an official cost of living crisis. \ud83d\ude43 Whilst tax isn\u2019t everyone\u2019s favourite domain (especially during these unprecedented times), there are a few ways to make tax work for you instead of being an extra pain in the derri\u00e8re. [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":41637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[299,301],"tags":[416,424],"class_list":["post-21286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-tax-basics","tag-benefits-reliefs-grants","tag-foreign-income"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>9 UK tax saving tips for the cost of living crisis &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"There are a few ways to make tax work for you instead of being a hindrance. 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