Fed up with high or unexpected tax bills?

If the words “tax bill” make you feel a bit uneasy, you’re not alone. No one enjoys seeing their hard-earned cash disappear into HMRC’s coffers, especially when you’re running your own business and juggling a million other things.

The good news: there are perfectly legitimate (and surprisingly simple) ways to reduce your personal tax bill – without doing anything dodgy. We’re all about helping smaller business owners like you keep more of what you earn in the right way.

So, grab a cuppa and let’s dive into our top five tax-saving tips to help ensure you only pay what you need to and not a penny more.

1. Make the most of your allowable expenses

Running a small business often means shelling out for a lot of things, like laptops, software, travel, phone bills, even that coffee you grabbed between client meetings (yes, sometimes that counts too).

The good news? Many of these expenses can be claimed as tax-deductible, which means they reduce your taxable profit—and in turn, your tax bill.

Panthera Tip: Keep a tidy record of what you spend on business, and don’t forget the less obvious stuff like mileage, home office costs, or professional subscriptions.

2. Use the Marriage Allowance (if you can)

If you're married or in a civil partnership, and one of you earns less than the personal allowance (currently £12,570), you may be able to transfer some of that allowance to the higher earner.

It’s called the Marriage Allowance, and it could save you up to £252 a year. Not bad for ticking a few boxes!

Panthera Tip: It’s easy to apply online and backdate for up to four years, so you could be in for a tidy little refund if you’re eligible.

3. Pay into a pension (and future you will thank you)

Not only is contributing to a pension a smart move for your future, it’s also a brilliant way to reduce your tax bill today.

Every penny you pay into a registered pension scheme gets tax relief – so you’re saving for retirement and cutting down your taxable income. Win-win.

Panthera Tip: Higher-rate taxpayers benefit even more, and if your company pays into your pension, it can save corporation tax too. Ask us how to structure it properly!

4. Consider splitting income with a partner

If your spouse or civil partner helps out in the business (or could), you might be able to split income more tax-efficiently – provided it reflects the work they do.

This might mean paying them a salary or even making them a shareholder if you’re operating through a limited company. The goal? Make full use of both of your personal allowances and basic rate bands.

Panthera Tip: This one has to be done right. HMRC don’t like smoke and mirrors, so give us a shout if you’re thinking about it.

5. Don’t forget to use your dividend allowance

If you operate through a limited company, taking part of your income as dividends (rather than salary) can be a more tax-efficient way to pay yourself – especially when combined with your personal and dividend tax allowances.

Currently, you can receive up to £500 in dividends tax-free (as of 2024/25), and dividends are taxed at lower rates than salary.

Panthera Tip: The rules change often, so it’s worth checking how to balance your salary and dividends for the best tax outcome.

BONUS TIP: Get proper advice (it pays for itself)

We get it, tax isn’t the most thrilling topic. But staying on top of it, and knowing where you can legitimately save, can make a big difference to what you take home at the end of the day.

At Panthera, we’re not just here for the annual tax return. We’re your go-to team for planning ahead, avoiding surprises, and keeping more in your pocket.

Ready to lower that tax bill?

Whether you're just starting out or you've been flying solo for years, these tips can help you trim your tax bill and keep your finances healthy.

Fancy a friendly chat to see what works best for your situation? Give us a shout, we promise we’ll keep the jargon to a minimum and the advice straight-up useful.