With the 2026/27 tax year now underway, it is a good time to check whether you are making full use of the tax reliefs, allowances and claims available to you. Many individuals and business owners continue to overpay tax each year, often because they are unaware of what they can legitimately claim.
The UK tax system is detailed, and while HMRC expects accuracy, it does not proactively ensure you are claiming everything available. That responsibility sits with you.
Here are some key areas to review:
Employment Expenses You May Be Missing
If you are employed, there are certain costs you may be able to claim tax relief on, especially if your employer does not reimburse you.
This can include:
- Professional fees and subscriptions relevant to your role
- Mileage for business travel in your own vehicle
- Working from home costs, where applicable
- Uniforms or specialist clothing required for your job
Since the shift in working patterns over recent years, HMRC has tightened rules around home working claims. Relief is typically available where working from home is a requirement rather than a choice.
Self-Employed and Business Expenses
If you are self-employed or run a limited company, ensuring all allowable expenses are claimed is essential for reducing your tax liability.
Common areas that are often overlooked include:
- Use of home as an office
- Business proportion of phone and broadband
- Training that maintains or updates existing skills
- Software subscriptions and digital tools
- Professional services such as accountancy and legal fees
Accuracy matters. Expenses must be wholly and exclusively for business use, and good record keeping is essential.
Pension Contributions and Tax Relief
Pension contributions remain one of the most effective ways to reduce your tax bill.
In 2026:
- The annual allowance remains at £60,000 for most individuals
- Higher and additional rate taxpayers can still claim further relief through their tax return
- Carry forward rules may allow you to utilise unused allowances from previous years
Many taxpayers contribute to pensions without claiming the full relief available, particularly higher earners.
Marriage Allowance
Marriage Allowance continues to be underused.
If one partner earns below the personal allowance threshold and the other is a basic rate taxpayer, a portion of the unused allowance can be transferred.
This can reduce the tax bill by up to £252 for the year. Claims can also be backdated for up to four years if eligibility criteria were met.
Savings and Dividend Allowances
Even though some allowances have reduced in recent years, there are still opportunities to earn income tax efficiently.
For 2026:
- The Personal Savings Allowance remains at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers
- The Dividend Allowance is £500
With interest rates and investment income fluctuating, it is important to structure income in a way that uses these allowances effectively.
Capital Gains Tax Planning
Each individual has a reduced Capital Gains Tax allowance of £3,000 in 2026. While lower than previous years, it still offers planning opportunities.
You may benefit from:
- Using the allowance early in the tax year
- Transferring assets between spouses to maximise allowances
- Timing disposals carefully
Without planning, gains can quickly exceed the allowance and become taxable at higher rates.
Are You Leaving Money Behind?
One of the most common issues we see is not incorrect claims, but missed ones. Many taxpayers simply do not realise what they are entitled to.
Small amounts across different areas can quickly add up over the course of a tax year.
A proactive review can often uncover opportunities to reduce your tax bill in a compliant and structured way.
How We Can Help
At North Devon Accounts, we work closely with individuals and business owners to ensure nothing is overlooked. From identifying allowable expenses to structuring income efficiently, our approach is practical and tailored to your situation.
If you are unsure whether you are claiming everything you are entitled to, now is the right time to review your position.
Contact North Devon Accounts today to make sure you are not paying more tax than necessary in 2026. Click the button below to send your email today.
(updated 2026)
