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    , plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa

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    Well, here we are again.

    The start of a new tax year is upon us, bringing with it many opportunities to save tax (legally) and keep as much of your money in your hands, and away from Gordon Brown's.

    The budget was a bit of a damp squib, so let's look at some of the best ways to save tax!

    Now, it's possible you've heard of some of these ideas, but are you actually using them? I've heard many clients say they've heard of something, then admit they've done nothing about it. Don't let this be you...

    On with the tips.

    1. Use an offset mortgage to reduce the amount of tax you pay on your deposit savings. If you have, say, ?20,000 in a deposit account and it's earning interest of 3% AER, the gross amount is ?600. There's a further ?120 (20%) taken in income tax at source, plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa t

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    s.

    The budget was a bit of a damp squib, so let's look at some of the best ways to save tax!

    Now, it's possible you've heard of some of these ideas, but are you actually using them? I've heard many clients say they've heard of something, then admit they've done nothing about it. Don't let this be you...

    On with the tips.

    1. Use an offset mortgage to reduce the amount of tax you pay on your deposit savings. If you have, say, ?20,000 in a deposit account and it's earning interest of 3% AER, the gross amount is ?600. There's a further ?120 (20%) taken in income tax at source, plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa

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    d many clients say they've heard of something, then admit they've done nothing about it. Don't let this be you...

    On with the tips.

    1. Use an offset mortgage to reduce the amount of tax you pay on your deposit savings. If you have, say, ?20,000 in a deposit account and it's earning interest of 3% AER, the gross amount is ?600. There's a further ?120 (20%) taken in income tax at source, plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa

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    pay on your deposit savings. If you have, say, ?20,000 in a deposit account and it's earning interest of 3% AER, the gross amount is ?600. There's a further ?120 (20%) taken in income tax at source, plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa

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    , plus another ?120 tax if you're a higher rate taxpayer. Therefore, the net interest is only 1.8%.

    Now let's say you have a mortgage of ?100,000 at 5% interest, meaning you're paying ?5,000 pa to service the loan.

    Now you place the ?20,000 in an offset account, which means that you're now paying interest on ?80,000, which is ?4,000 pa.

    Let's see what you've achieved. You WERE earning ?360 pa interest on the ?20,000. Now you're saving ?1,000 pa on the mortgage payment, giving you a net gain of ?640! You would actually need another ?36,000 in deposit savings to equal the offset savings.

    The other plus is that you now don't have savings interest to declare on your tax return.

    2. If you don't want a flexible mortgage, or don't have a mortgage, you can still save tax. If your spouse is not working and has no income you should place the deposit savings in their name. For example, if you have ?50,000 in a deposit account and are paying 40% tax on this, you'll only be ear

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