Tax reliefOne way to reduce your tax bill is to claim tax relief. You can’t claim tax relief if your employer gives you all the money back or alternative equipment. For example, if you claim £60 of tax relief and usually pay tax at 20% then you will get £12 back. But if you earn less than this then you usually don’t have to pay Income Tax. Beyond this the tax rate you pay on dividends over the allowance depends on your income tax band.

Source: The Times December 29, 2025 19:40 UTC