Top 10 UK Tax Reliefs You Might Be Missing in 2025

Are You in Danger of Losing a Precious Tax Relief?

Every year, thousands of innocent UK taxpayers let go of precious income by simply overlooking some valuable tax reliefs. In 2025, more than ever, knowledge of these reliefs is crucial, with the rise in living costs combined with changing tax regulations making every penny count. Grab this opportunity if you want to keep maximum out of your pay while lessening your tax bill.

This guide will look at the top 10 UK tax reliefs for which you may lose out in 2025. Some are suitable for employees, whereas others are great for freelancers and side-hustlers, and very clearly offer actionable insight into helping you hold on to more of your hard-earned money.

1. Working from Home Allowance

The Working from Home Allowance is very important with the nature of remote working from home being pretty common at present:

• Employees claim tax relief up to £6 per week, which is £312 per annum.
• Self-employed individuals claim based on actual costs associated with running a home.

Apply online from GOV.UK.

2. Marriage Allowance

It's often missed out on by many couples:

• Transfer £1,310 of your personal allowance to your spouse or civil partner.
• This can save you up to £262 a year if one partner earns below £12,570 and the other pays tax at the basic rate.

Check your eligibility on GOV.UK.

3. Pension Contributions

Additional pension contributions are one of the most powerful tax saving methods:

• Get automatic tax relief at your marginal rate.
• Higher-rate taxpayers claim additional relief with Self Assessment.

Think about contributing more to your workplace pension scheme or your own private pension scheme.

4. Gift Aid

The Gift-Aid scheme can be employed to give to charity with benefits to both the donor and the charities:

• Charities get an extra 25% from HMRC on top of your donation.
• Higher-rate taxpayers can claim back more via Self Assessment.

Make sure you report any Gift Aid donations on your tax return.

5. Tax-Free Childcare

This scheme is designed to considerably reduce childcare expenses for a family:

• Receive up to £500 every 3 months (£2,000 annually) per child.
• For employed or self-employed parents earning at least £167 per week.

Go to Childcare Choices to submit your application.

6. Personal Savings Allowance

A common tax relief, hugely overlooked as it allows interest on savings up to limits to be tax-free:

• £1,000 for basic-rate taxpayers
• £500 for higher-rate taxpayers
• No allowance for additional-rate taxpayers

Use your ISAs and savings accounts carefully to benefit as much as possible.

7. Rent-a-Room Relief

Letting a furnished room? You could be qualified for this:

• May earn up to £7,500 tax-free annually (£3,750 each for joint owners).
• Applies to spare rooms let in your main residence.

If you earn more than this, declare the income on Self Assessment.

8. Trading Allowance

Perfect allowance for freelancers and side-hustlers:

• Up to £1,000 casual earnings are tax-free.
• Makes record-keeping and reporting easier for small businesses.

Perfect for the occasional seller on eBay or Etsy.

9. Mileage Allowance Relief

If using a private car for business travel, an employee can claim:

• 45p per mile for the first 10,000 business miles
• 25p per mile thereafter

Claim via Self-Assessment or through your employer.

10. Capital Gains Tax Allowance

Disposing of valuable assets? Claim your annual exemption:

• Tax-free allowance of £6,000 for the 2024/25 tax year.
• Sell assets carefully, with an eye to maximising annual allowances.

Plan asset disposals carefully to maximise your reliefs.

How to Best Claim Tax Reliefs

Here's a quick checklist to make sure you do not miss out:

• Check your eligibility each tax year
• Keep good records of expenses and income
• Claim additional reliefs via Self Assessment
• Hire a financial advisor, chartered accountant, or tax consultant on doubt

For personalised feedback, use our salary calculator to get an idea of how the relief affects your take-home pay.

Conclusion: Get Started With Tax Savings Today

Knowing how to claim these 10 UK tax reliefs in 2025 will put a lot more money in your pocket. Small achievements today pave the way for huge achievements tomorrow. Stay informed, plan accordingly, and provide relief opportunities whenever you can, and then watch you bank account swell.