3 legal ways to increase your take-home pay today
You don’t need an accountant. These are HMRC-approved income tax reduction strategies that any UK employee can use — from salary sacrifice pension contributions and ISA tax wrappers to employment expense claims and self-assessment tax return optimisation. All legal, all accessible, starting right now.
Salary sacrifice: reduce taxable income at source
By directing part of your salary into a pension or childcare vouchers before tax is calculated, you shrink the amount HMRC can tax. On a £40,000 salary, increasing pension contributions by 5% saves roughly £800/year in income tax plus National Insurance.
This is completely legal and encouraged by HMRC. Your employer pays less NI too — many will match extra contributions as a result.
Check and correct your tax code with HMRC
If your tax code is wrong, you could be paying hundreds more each month than you should. The most common mistake: an emergency code (ending in W1 or M1) that stays active long after it should have been corrected.
Checking takes 5 minutes via HMRC’s online portal. If you’ve overpaid in the last 4 tax years, they will refund you directly.
Claim work-related expenses you’ve been ignoring
HMRC allows deductions for expenses your employer doesn’t reimburse: working from home (up to £312/year), professional subscriptions, uniform maintenance, and business mileage. These can be backdated up to 4 tax years.
You can do all of this directly with HMRC
Visit gov.uk/income-tax, sign into your Personal Tax Account, and check your code, previous overpayments, and eligible expenses — all in one place. Many workers find unclaimed refunds waiting for them. It’s your money. HMRC will not chase you to take it back.
One last thing most workers miss entirely
There’s a fourth option that works differently — and it’s now the easiest way for UK employees to optimise their tax position in 2026. It takes under 10 minutes to set up.
Show me the final method →Links to third-party providers are included for informational purposes. Some links may be affiliate or advertising links. We do not recommend any specific financial product. Always verify fees, terms, and regulatory status before using any financial service. Tax savings vary by individual circumstances. This is not financial advice.