This article is a summary of a YouTube video "ACCOUNTANT EXPLAINS: How to Pay Less Tax" by Nischa

How to Reduce Your Tax Bill: 5 Legal Ways to Keep More of Your Income

TLDRLearn how to legally reduce your tax bill and keep more of your hard-earned money. Explore five key strategies such as pension contributions, earning through the right structure, investing in tax-free accounts, and more.

Key insights

💰Take advantage of pension contributions to reduce your taxable income and enjoy tax-free earning on investments.

💼Consider earning through the right structure, such as a company, to utilize tax deductions and lower your overall tax burden.

📈Invest in tax-free accounts like stocks and shares ISAs to shield your profits and gains from being taxed.

💡Explore offshore accounts or property tax strategies for even more tax savings opportunities.

🏢Consult with a professional advisor to fully understand and strategize your tax-saving options.

Q&A

Can I reduce my tax bill legally?

Yes, there are several legal ways to reduce your tax bill, including pension contributions, earning through the right structure, and investing in tax-free accounts.

How can pension contributions help lower my tax bill?

By contributing to a pension, you can reduce your taxable income, resulting in lower tax payments. Additionally, the money in your pension pot can be invested with tax-free earnings.

What is the advantage of earning through the right structure?

Earning through the right structure, such as a company, allows you to deduct business expenses and lower your overall tax burden. It also provides more flexibility in managing and investing your income.

Are there any tax-free investment options?

Yes, investing in tax-free accounts like stocks and shares ISAs can shield your profits and gains from being taxed, providing a tax-efficient way to grow your wealth.

Do I need professional advice to reduce my tax bill?

While it's possible to navigate tax-saving strategies on your own, consulting with a professional advisor can provide valuable guidance tailored to your specific financial situation and goals.

Timestamped Summary

00:46Introduction to the importance of reducing your tax bill and legal methods to do so.

01:23Explanation of how income tax brackets work and how you're actually taxed on different income levels.

03:00Insight into the benefits of pension contributions and how they can lower your taxable income.

05:01Understanding the advantages of earning through the right structure, such as a company, and utilizing tax deductions.

06:24Exploration of tax-free investment options like stocks and shares ISAs and their benefits.

07:46Teaser for future videos on additional tax-saving strategies like offshore accounts and property tax.

08:40Importance of seeking professional advice to maximize your tax-saving opportunities and save thousands in the long run.

08:51Conclusion and call to action to share the video and subscribe for more financial education content.