The seven secrets of paying less tax - from the experts

Between us we'll waste an astonishing £4.6 billion this year by paying tax we really don't need to pay. We're not talking about 'doing a Google' or trying one of those schemes that celebrities get into so much trouble for - and George Osborne has pledged to bring an end to. These are approved schemes and techniques that could help us all save hundreds or even thousands of pounds in tax a year.

Before we start - the things that really aren't secrets

The biggest saving - and the most obvious one - is to take advantage of tax-efficient savings vehicles, such as ISAs and pensions, before the end of the tax year on 5 April. If you haven't used your allowances, you have enough time if you act now.

Jonothan McColgan, an adviser with Combined Financial Strategies says that he expects the March Budget to cut additional and higher-rate tax relief on pensions from 45% or 40% to 30% (or even 20%), so it's worth saving as much into your pension as possible before then, while tax relief remains generous.
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Once the new tax year has started (on 6 April), Simon Webster, an adviser with Facts & Figures Financial Planners says it's vital to use your allowances for next year too - sooner rather than later - so you can take advantage of an extra year of tax-free growth.

The secrets

However, that's just the tip of the iceberg in terms of what you can save with an expert steer on tax.

1. Use cash savings accounts

It sounds like odd advice from the experts - and hardly exactly a 'secret' - but Danny Cox, an adviser with Hargreaves Lansdown, explains that from April, the rules surrounding tax on ordinary cash savings accounts will change.

Instead of being taxed on all interest, the first £1,000 of interest will be tax free for basic rate taxpayers (the first £500 for higher-rate taxpayers). Only additional rate taxpayers won't have any personal savings allowance. This gives you the freedom to check the whole of the market for the best possible savings rates.

2. Consider opting out of pensions

Pensions remain one of the most tax-efficient ways to save for your future, but if you have already saved a great deal into your pension, it's worth examining it a bit more closely. Alistair Cunningham, an adviser with Wingate Financial Planning, explains that the lifetime allowance is dropping in April, so people who are at risk of breaching the tax-efficient limit have a one-off chance to protect the money in their pension from tax - by claiming Fixed Protection 2016. This will mean you have to stop saving into your pension, and put money aside in other ways - but for some people it will be worth it.

3. Check for tax refunds on lower incomes

Joss Harwood, an adviser with Eldon Financial Planning, says: "In this tax year (2015/2016) there is a tax benefit for those on lower incomes who have savings. All your interest will be tax free if your total taxable income is less than £15,600. You can claim a refund on some of the tax on your interest if your taxable income is less than £15,600 when you don't include savings interest."

4. Take advantage of dividend allowances

Another rule change that could boost your finances is that from April all taxpayers will have a £5,000 dividend allowance. This means any dividend payments you receive, either from a company shareholding or investments outside of an ISA or pension, will not incur a tax liability as long as you don't get more than £5,000 in dividends.

5. Transfer savings to your spouse

Gretchen Betts, an adviser with Broadway Financial Planning, explains: "If you work and your spouse doesn't, or pays tax at a lower tax rate, then you may be missing out on tax savings if you have investment income. You could make tax savings by transferring savings or shares into your spouse's name or changing the ownership of investment properties, so that the ownership is weighted in favour of your spouse, which means that the income would be too.'

6. Set up children's savings plans

If you are worried about inheritance tax, consider setting up regular savings plans for your children or grandchildren. Scott Gallacher, an adviser with Rowley Turton Private Wealth Management, says: "Provided the savings do not materially reduce your standard of living, they would benefit from the 'Normal Expenditure out of Regular Income' exemption, meaning that these savings would be free of IHT."

7. Understand your tax position

There are key thresholds that are worth knowing about. If you only just breach one of them, it will make it even more rewarding to save into a pension or donate to charity. Jason Whitcombe, an adviser with Evolve, says some of the most important thresholds are:

£10,600 – the tax-free personal allowance that most people have
£42,385 – the point at which 40% tax starts for most people.
£50,000 to £60,000 – the bracket in which child benefit is lost.
£100,000 to £121,200 – where a quirk in the tax system means income tax shoots up to 60 per cent
£150,000 and over – where the tax rate is 45 per cent