How to cut your 2015/16 UK tax bill

Here are some of the ways you can legally reduce your 2015/16 tax bill.

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The self-assessment tax return deadline is fast approaching. This means many will be required to work out the tax they owe on income for the 2015/2016 tax year (which runs from April 6 2015 to April 5 2016) by January 31.

With the 2016/17 tax year underway you might think there is little you can do to reduce your tax bill for 2015/16. But there are still some ways to legally pay less without having to resort to dodgy tactics. Here’s what you need to know.

Offset your expenses

Self-employed people and private landlords are allowed to deduct some business expenses before paying tax on their income.

The self-employed can offset things like travel costs, the running costs of a business premises (including a home office) and buying stationery. Just make sure you have the receipts to back up your claims.

Meanwhile private landlords can claim for things like agent fees, utility bills, maintenance, repairs, services like a gardener, legal fees and direct costs such as phone calls, stationery and advertising for new tenants.

They can also offset tax on their mortgage interest and for wear and tear on their property, though the Government is reducing this particular tax break. Read Right to Rent, tax relief changes, the Deregulation Bill: buy-to-let still doesn't add up for the latest.

Those that run a business can also take advantage of the Annual Investment Allowance (AIA) to claim tax back for buying things like tools and computers - the limit is currently £200,000.

Claim for pension contributions

If you made pension contributions in the 2015/16 tax year you can claim tax back if you are a higher rate or additional rate tax payer.

Pension contributions get a top-up of 20% automatically. So if you pay in £80 a pension firm can claim back £20 on your behalf.

Higher and additional rate taxpayers can claim the extra relief due (20%/25%) on their tax returns.

Tap into your Marriage Allowance

Married couples and civil partners born after April 6 1935 may be able to take advantage of a tax break called the Marriage Allowance.

It allows a partner who earns less than £11,000 a year to transfer up to £1,100 of their personal allowance to their higher earning spouse.

The Government estimates 4.2 million households could save up to £220 over the tax year 2016/17 thanks to the scheme, but only 1.3 million have taken up the offer since it launched in 2015.

For the 2015/16 tax you can still claim the tax break and reduce your tax bill by £212. This tax break applies whether you have to fill in a return or not.

Claim money on charitable donations

The Government pays tax-relief on charity donations.

Both you and the charity can benefit, but it depends on how you donate.

Donating through Gift Aid means charities and community amateur sports clubs (CASCs) can claim 25p for every £1 you give back from the Government.

Higher rate taxpayers can claim the difference between the basic rate on the donation on their self-assessment return.

So if you donated £100 to your favourite charity, the total value of your donation was £125, and you can claim back £25 if you pay tax at 40% (£125 × 20%).

Use your Capital Gains Tax allowance

Capital Gains Tax (CGT) is payable on the profits made from selling assets like property (not your main home) and investments.

You don’t have to pay if your gains are under your tax-free allowance. In 2015/16 the capital gains you can get tax-free was £11,100.

After the tax-free allowance CGT is charged according to your tax band. For the 2015/16 tax year the rate of CGT for basic rate (20%) taxpayers is 18% and the rate for higher rate taxpayers (40% or 45%) is 28%.

These rates have changed for the 2016/17 tax year. Check out Budget 2016: landlords excluded from Capital Gains Tax changes for more.

For other ways to reduce your CGT bill take a look at: Ways to avoid Capital Gains Tax.

Make use of th Rent a Room relief

The Government’s Rent a Room Scheme means people letting out a furnished room to a lodger in their home can get tax-relief on the income they make from it.

For the 2015/16 tax year the relief applies on the first £4,250 made. The relief applies if you run a guest house or bed and breakfast business.

Check your tax code

Your tax code determines your personal allowance, which is how much you can earn before Income Tax kicks in.

You should double check your tax code is correct to make sure you aren’t on the wrong one, as you may then be paying too much to HM Revenue & Customs.

Check out how to check you're on the right tax code for all you need to know.

How to reduce your 2016/17 tax bill

For tips on how to reduce your 2016/17 tax bill take a look at Pay less tax: cut your Income Tax, Capital Gains Tax, Inheritance Tax bill which has all the details of the latest allowances you can claim.

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