Keep the taxman from your moeny

KPMG has been suggesting ways for taxpayers to give less to the Government by being more on the ball with their finances.

12:08 01 June 2004

KPMG has been suggesting ways for taxpayers to give less to the Government by being more on the ball with their finances.

It comes just after Tax freedom day, which fell on Sunday May 30th, the day traditionally when employees stop working for the taxman and start working for themselves.

KPMG hopes their suggestions will help taxpayers to bring their personal tax freedom day forward next year.

Since 1997 tax freedom day has slipped six days backwards, meaning we pay six more working days worth of tax each year.

Dawn Elliott, tax partner for KPMG in Gatwick said: "If you review your current financial situation and become more tax savvy with your finances you can bring your personal Tax Freedom Day forward and start celebrating early."

Among the pointers, KPMG recommends that taxpayers use up their annual ISA allowance of 7,000 or move savings from an ordinary deposit to a mini cash ISA. Other tax-free saving options suggested include National Savings schemes.

With self-assessment tax forms KPMG says: "Make sure it arrives correctly filled in and on time - by January 31st - to avoid fines and interest charges." Last year thousands of people received a penalty of 100 for late filing of returns.

Other money-saving solutions include: maximising personal tax allowances, inheritance planning to avoid heavy taxation, and using gift aid when making charitable donations.

Giving monetary gifts to children can also help as children enjoy a capital gains tax exemption and so can benefit from tax-free capital growth.