save and pay less tax

6 Tips How To Pay Less Tax in UK Legally

Pay Less Tax In UK Legally

In these difficult economic times, it’s no surprise that more and more people are looking for ways to pay less tax. The UK has one of the highest tax rates in the world, so most people are looking for ways to legally reduce their tax bills.

Table of contents:

  • Tax Code
  • Allowances
  • Pension Contribution
  • Charity or Gifting
  • Sacrifice Income
  • Employ a Companion
  • How much is the tax rate?
  • How to find an accountant/bookkeeper?
  • Conclusion

6 Ways To Save Paying Tax

These are the following tips you can apply before your tax return to pay less tax in the UK. Plus, we have a bonus paragraph on how to find an accountant or bookkeeper?

1. Tax code

Back to basics. How to pay taxes? Our tax advice is, to first check your tax code and ensure it is correct, otherwise, you could face a higher tax bill. If you get it wrong it could end up costing you over £100 a month.

2. Allowances

There are a number of tax allowances that you may be able to take advantage of in order to avoid paying too much tax, which may include the personal allowance, the marriage allowance, the capital gains tax allowance etc.

3. Pension contribution

Paying more pension contributions is one of the best ways to save tax. By contributing to a pension, you can take advantage of tax relief on your contributions, which means you pay less tax overall. In addition, many employers offer matching contributions, so you can get even higher value for your money.

4. Charity or gifting

Giving to a charity does more than make you feel good; it also saves tax money and lowers your self-assessment tax return burden, however it is only accessible by adding Gift Aid to the donation. In addition, you must keep all records of the charitable donations to reduce your taxable income.

5. Sacrifice income

If you’re looking for a way to pay less tax this year, sacrificing your salary might be an option and it is absolutely legal. There are many different types of arrangements in which employers and employees can agree so that both sides can benefit without having any financial loss e.g. medical insurance, gym membership, child care, car leasing etc.

Contact your payroll department for more details or our accountant for tax planning.

6. Employ a companion

In the UK, the personal allowance (£12,570) is a limit on how much you can earn to not pay taxes. If you are a self-employed or business owner and your spouse or partner doesn’t work or they’re unemployed you might consider employing them and dividing the salary of ‘Yours’ between the two people. By doing that, you can reduce your tax bill.

pay less tax

How much is the income tax rate?

Income tax is paid at a rate of 20% for most people. This means that for every £1 that you earn, you have to pay 20 pence in tax. However, higher earnings will result in higher tax payments.

How to find accountants or bookkeepers?

When it comes to accounts and bookkeepers, it’s important to find professionals who can help you keep your company finances in order.

Here are a few tips on how to find a good accountant and bookkeeper:

=> Check with the Better Business Bureau to see if any complaints have been filed against potential accounting or bookkeeping firms.

=> Interview several accounting or bookkeeping firms before making a decision. Be sure to ask about their experience and what services they offer.

=> Make sure the bookkeeping or accounting firm is licensed and insured.

=> Ask for a free consultation so you can get a feel for how the bookkeeping or accounting firm works.

=> Make sure you are aware of and understand the firm’s fees and billing practices before starting work.

=> Get referrals from other businesses.


In this article, we’ve outlined several ways that you can pay less personal tax in Manchester or in the United Kingdom. These include taking advantage of tax allowances, making pension contributions, donating to charity, and sacrificing income tax.

We’ve also provided tips on how to find good tax accountants or bookkeepers. By following these tips, you can save yourself hundreds or even thousands of pounds each year. Let us know in the comments if you have any questions about tax planning or how to reduce your tax bill.

Do you need help?

MH Services Manchester is an expert accountancy firm and tax advisor with many years of experience in accounting, PAYE, tax and financial services. Contact us today for a free consultation.


accountant for startups

10 Easy Tips Choosing An Accountant For StartUps

How to Choose an Accountant for Startups?

Starting a business is no easy task for sole traders or startups. There are so many things to think about – from the products and services you will offer, to the marketing strategy you will use to attract customers. But one of the most important decisions you will make is who to choose as your accountant.

=> A good accountant will help your business to grow and succeed, while a bad accountant can cost you time and money. In this blog post, we will give you 10 tips for choosing an accountant for startup business!

Table of contents:

  • What is an accountant
  • How to find the right accountant for startups
  • Tips to choose an accountant
  • The benefits of using an accountant
  • FAQ about accountants and start ups
  • Conclusion

What is an accountant?

An accountant is a professional who helps businesses and individuals manage their finances. They can help with everything from preparing tax returns to tracking expenses. It’s important to choose an accountant who is a good fit for your business as they will be able to provide valuable insights and advice.

How to find the right accountant for your business?

When looking for an accountant, it’s important to consider your needs and budget. It’s also important to find an accountant who is qualified and experienced in working with start-ups since they will be able to offer specific advice.

Before you set up a business:

1. Research the different types of accountants available.

2. Find out what services they offer and if they’re a good fit for your business.

3. Compare prices and services to get the best value for your money.

4. Read reviews and compare ratings to find a reputable accountant.

5. Ask for recommendations from friends or business associates.

How to choose an accountant?

1. Make a List

The first step is to make a list of potential accountant candidates. This can be done by word-of-mouth, online searches, or by referrals from friends or colleagues.

2. Narrow the Field

Once you have a list of potential accountant candidates, begin narrowing it down.

Consider factors such as:

  1. The accountant’s experience working with start ups
  2. Their fees and availability
  3. Whether they have a good reputation

3. Set Up Interviews

Once you have narrowed your list down to a few accountant candidates, set up interviews. This will give you an opportunity to learn more about the accountant and their experience.

Ask questions such as:

  1. What experience do they have working with start ups?
  2. Do they have a good understanding of the challenges faced by start ups?
  3. What are their fees and availability?

4. Check References & Accounting Services

After you have interviewed the accountant candidates, check their references. This is an important step in ensuring that you are hiring a reputable and qualified accountant.

5. Make a Decision

After you have interviewed the accountant candidates and checked their references, it is time to make a decision. Choose the accountant that you feel is the best fit for your start up and its needs.

6. Get Started

Once you have chosen an accountant, it is time to get started. Begin by discussing your start up’s needs and goals. This will help the accountant to better understand your business and provide you with the best possible service.

7. Stay Organized

One of the best ways to stay organized and on top of your finances is to keep good records. Be sure to keep track of all your income and expenses. This will help your accountant to prepare your financial statements and taxes.

8. Communicate

Communication is key when working with an accountant. Be sure to keep them up to date on any changes in your business.

9. Review Your Financial Statement

Be sure to review your financial statements on a regular basis. This will help you to stay on top of your finances and make sure that your accountant is doing their job.

10. Ask Questions

If you have any questions about your finances or taxes, be sure to ask your accountant. They will be able to provide you with the information you need to make the best decisions for your business.

accounting benefits

Benefits of an accountant for start up business:

A) Save time and money by having an accountant review your finances and help you stay organized whether you are start-up, small business or established business

B) Get expert advice on tax planning, financial planning, and more.

C) Get help with company taxes, formation, new business transactions, accounting software

D) Feel confident with hassle-free accounting and spot on business expenses

E) Sleep better at night knowing that your finances are in good hands.

FAQ about accountants and startups


A start up does not need an accountant, but it would be beneficial to have one. An accountant can help a start-up with tasks such as bookkeeping, business structure, preparing and filing taxes, and financial planning.


A business startup accountant can help with tasks such as bookkeeping, investment business, preparing and filing taxes for HMRC and companies house, and financial planning. They can also provide advice on financial matters and help the startup to save money on taxes.


There is no one-size-fits-all answer to this question, as the need for an accountant will depend on the specific business and its financial situation. However, many entrepreneurs find that an accountant can be a valuable asset, providing advice on financial matters and helping to save money on taxes.


There is no definitive answer to this question, as the timing will depend on the individual business and its financial needs. However, it is generally advisable to bring on an accountant sooner rather than later, as they can provide valuable advice and assistance.


There is no one-size-fits-all answer to this question, as the need for an accountant will depend on the specific business, sole trader and its financial situation. However, a good accountant will help you from day one to be tax efficient, build a business plan and save you time and money.


No, you do not need to have a business bank account to hire an accountant. However, it is generally advisable to have one so that your accountant can more easily manage your finances.


If you are a limited company, you should hire a professional accountant. Limited companies are required by law to have an accountant who can prepare and file their annual accounts and tax returns.


An accountant can be a valuable asset for any sole trader or start up business, providing assistance with tasks such as bookkeeping, preparing and filing taxes, and financial planning.

They can also provide advice on financial matters and help the startup to save money on taxes. If you are a limited company, you are required by law to have an accountant who can prepare and file your annual accounts and self assessment.

When choosing an accountant for your startup business, it is important to shop around and find one that you feel comfortable with and who you feel confident can provide the services you need. Do not hesitate to ask questions and get referrals from other businesses in order to make the best decision for your start up.

If still need professional advice, don’t hesitate to reach out to MH Services in Manchester or London. Our team is professional in bookkeeping, accounting, payroll and pension services, self-assessment, vat registration and tax return services. We provide a no-obligation free consultation to discuss your business requirements.