Working for a large organisation usually comes with a reliable income, solid perks, and the comfort of job stability. But what many employees don’t realise is that they could be paying more tax than they actually need to.
At TAXREADS LTD, an HMRC-approved tax agent and UK-based accounting firm, we regularly meet professionals from big companies who have never reviewed their tax position — and are surprised to learn how much they could have saved legally.
This guide breaks down practical, fully compliant ways to reduce your tax bill while working for a large firm in the UK.
1. Start by Checking Your Tax Code
It sounds simple, but it’s often the biggest reason for overpaying tax.
Your tax code decides how much income tax is taken from your salary. If HMRC has the wrong information — maybe you changed jobs, received a company benefit, or had a bonus — your code could be wrong.
Tip: Log into your HMRC Personal Tax Account and make sure the code matches your situation. If not, request a correction online. People often find they’re owed hundreds from previous years.
2. Don’t Miss Out on Work-Related Expense Claims
Even when your employer reimburses some costs, there are still tax-deductible expenses you might be entitled to. Common ones include:
- Professional memberships (ACCA, ICAEW, CIPD, RICS, etc.)
- Work uniforms or specialist tools
- Business travel in your own car (not your commute)
- Certain training costs you paid for personally
You can submit a P87 form or claim through your HMRC account — it’s a quick win that adds up year after year.
3. Make Use of Salary Sacrifice Schemes
Most large employers offer salary sacrifice options. These allow you to exchange part of your gross pay for certain benefits, which lowers your taxable income.
Popular schemes include:
- Pension contributions
- Cycle-to-work programmes
- Electric car leasing
- Childcare vouchers (if you joined before the scheme closed)
These benefits are deducted before tax and National Insurance, meaning you save twice.
4. Boost Your Pension Contributions
If you’re looking for an easy, long-term way to save on tax, your pension is your best friend. Contributions into your workplace pension are taken before income tax, so every extra pound you contribute reduces your taxable income.
Higher-rate taxpayers save the most — for every £100 you put in, the real cost after tax relief could be only £60. It’s an effective way to pay less tax now while building a stronger retirement pot.
5. Use the Tax Allowances You’re Entitled To
Every year, HMRC gives you a few opportunities to keep more of your money — but only if you know where to look.
You might qualify for:
- Marriage Allowance – transfer part of your personal allowance to your spouse if one earns below the threshold.
- Savings Allowance – up to £1,000 of tax-free interest (basic rate taxpayers).
- Dividend Allowance – £500 of dividend income tax-free.
- Rent a Room Relief – earn up to £7,500 tax-free by renting a furnished room in your home.
These allowances often go unused, yet they’re simple to apply for.
6. Get Tax Relief on Charitable Donations
If you donate through Gift Aid, the charity claims back 25%, and if you’re a higher-rate taxpayer, you can claim the difference yourself through Self Assessment.
In short: giving to charity not only helps others — it can reduce your tax bill too.
7. File a Self Assessment (Even if You’re Employed)
Many employees never file a tax return because they assume it’s only for the self-employed. But if you have additional income — from shares, property, crypto, or side work — completing a Self Assessment allows you to:
- Claim tax relief on extra expenses
- Reclaim overpaid tax
- Stay fully compliant with HMRC
At TAXREADS LTD, we help employed professionals file accurate returns, ensuring every eligible deduction is included from 300 pounds.
8. Review Your Employee Benefits
Large firms often offer benefit packages that look attractive — company cars, medical cover, or share schemes. However, some of these can be taxable perks.
For instance, electric company cars are currently taxed at a much lower rate than petrol ones. A quick review of your benefits with a tax professional can help you choose options that work in your favour.
Conclusion
You don’t have to quit your job or start a business to pay less tax. A few small checks and smarter planning can make a real difference.
At TAXREADS LTD, we help employees of large firms understand the UK tax system and keep more of what they earn — legally, efficiently, and stress-free.
Contact us today to review your tax position and see how much you could save this year.