Expert reveals the biggest tax loopholes and mistakes from cycle-to-work schemes to benefits

Taking better advantage of some cycle-to-work schemes and other tax loopholes could be the answer to living a ‘tax efficient life’ and saving some tax later down the line, an expert has revealed.

Andrew Mangion, Global Head of Tax at investment platform Saxo, said consumers should ‘take advantage’ of cycle to work schemes because the bike will be ‘tax-free’.

Speaking on other tax benefits ahead of the ISA allowance deadline just around the corner on April 5th, Andrew said stay-at-home mums could be missing out by not transferring tax-free allowance’ to partners and also checking any benefits that could be received from ‘marriage allowance’. 

Andrew added that households earning over £50,000 can decide to claim for child benefit and ‘pay the tax’ to ‘save a back tax bill later on’

Andrew Mangion, Global Head of Tax at investment platform Saxo, said, ‘Take advantage’ of cycle-to-work schemes for ‘tax-free’ bike and ‘check your tax code’ every year

“To live a tax-efficient life, open an ISA, invest as much as you can in your pension, take advantage of your cycle-to-work tax scheme because your bike will be tax-free.

Check your tax code each tax year, to make sure that your allowances are correct and if you are a basic rate taxpayer consider any benefit you may receive from the marriage allowance, which allows a spouse to transfer 10% of their personal allowance to their spouse.

Stay at home mums can get ‘better tax-free’ allowance with quick transfer

“If you’re a stay-at-home mum and you’re not intending to go back to work, then transferring your tax-free allowance to your partner is a good way of saving some tax.

“So you get a slightly better tax-free allowance. They might want to review with a professional whether or not it’s worth taking the tax credits, whether your partner is a high-rate taxpayer, for example.

Households earning over £50,000 can ‘still claim for child benefits’ and pay the tax

“Child benefit is also only paid to households who have an income of under £50,000. Once you reach that threshold, then you lose the child benefit, However, you may still claim for it. And then your partner has to pay the tax, so you might want to decide what works for you to save a back tax bill later on.”