Whilst we all hate paying tax, the vast majority of people pay far more than they actually need. Without clear advice individuals often fail to make the most of tax relief when they save and invest.

Tax planning may not an exciting topic but the benefits can be too good to ignore, our service at Foresight is designed to find where you could be paying over the odds and in a few simple steps it's possible to save thousands.

Although a discussion with our advisers should lead to the creation of a long-term tax-saving strategy here are a few of our top tips for reducing your tax bill. 

Always file your tax return before the 31 January deadline - miss the deadline and you'll be hit with a £100 fine. You may also be liable to pay interest on your outstanding bill.

An estimated 10% of tax codes are incorrect, so check yours is at the right level with your local tax office.

Make the most of your individual savings account (ISA) allowance and watch your savings and investments grow tax-free. See our investment section.

If either you or your spouse are non-taxpayers, ensure the Inland Revenue knows. You need to complete form R85 to prevent tax being automatically deducted from any savings accounts.

By transferring investments to a non-taxpaying spouse - this could save you 40% tax on investment income. 

If you have large savings consider an offset mortgage. By offsetting your savings against your mortgage you won't earn any interest that will be liable to tax, instead you reduce the interest payable on your mortgage. This is particularly beneficial to higher rate taxpayers who see 40% of their interest disappear in tax.

Cash in on pensions tax relief. It costs basic rate taxpayers 80p to invest £1 in a pension while higher rate tax payers only need to pay 60p. Following the introduction of new rules last year, it's possible to invest 100% of your earnings subject to a £235,000 maximum, see our pension section for more information.

If you have children with a child trust fund make sure take full advantage of it before setting up other investments. Each year you can invest up to £1,200 tax-free.

Consider the use of Nil Rate Band Discretionary Will Trusts, as transfers between spouses are tax-free, this little trick ensures you take advantage of both your allowances saving your family 40% of the nil rate band, potentially up to £124,800 for the current tax year. Although changes introduced following the pre-budget report of October 2007 mean that most couples will be able to benefit from both Nil Rate Band allowances without incoporating any such clauses there are still circumstances when this might be advantageous and we would recommend seeking legal advice. If you want further information on planning in this area please do contact us. 

Remember to take advantage of your capital gains tax allowance - currently £9,600.

Using your Capital Gains Tax Allowances in conjunction with your income tax allowances could create a tax-free income of up to £33,500 for a retired couple!