The Easy Tax Savings You May Be Missing
Some of the best tax savings are the simplest.
Here are a few that are easy to overlook.
By Karlee Pegley, Client Manager
You do not need clever schemes to save tax. A handful of everyday allowances, used properly, add up. Here are some that business owners often miss.
Trivial benefits: the £50 rule
You can give an employee a gift of up to £50 free of tax and National Insurance, as long as it is not cash or a cash voucher, not a reward for work, and not in their contract. Directors of small companies can do this up to £300 a year. Think a birthday gift, a meal, or a bottle of something.
Working from home
This changed in April 2026. Employees can no longer claim tax relief themselves for extra household costs. Instead, employers can pay up to £6 a week (£26 a month) tax free where there is a homeworking arrangement. If your team works from home, use the employer route.
Mileage
If you use your own car for business, the company can pay you the approved mileage rate tax free. For 2026/27 that is 55p a mile for the first 10,000 business miles and 25p after that, up from 45p in April 2026. Keep a simple mileage log.
Pension contributions
Employer pension contributions are one of the most efficient ways to take money out of a company: usually deductible for the business, free of National Insurance, and outside your taxable income. A great option once salary and dividends are set.
Figures are correct at the time of writing (2026/27). We will always check the latest position for you.
These are the everyday wins we build into every client review. Small things, done consistently, that keep more money in your pocket.
