---
title: Set Up Tax Reliefs
description: Tax Relief
---
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# Set Up Tax Reliefs
Tax reliefs are your employees' financial friends! They help reduce the tax burden by recognizing personal financial responsibilities like mortgages or life assurance. Let's walk through how to set these up and add them to your Paygrades.
#### Create New Tax Relief
---
- Navigate to the **Menu** on the left side of the screen and scroll down to find **Compensation**.
- Click on the downward arrow next to **Payroll** to reveal additional options.
- From the list of options, select **Configuration**.
- At the top of your screen, click on **Tax Reliefs**.
[](https://downloads.intercomcdn.com/i/o/1096288024/8d71eb834c8332d0d68625cd/Tax+reliefs.gif?expires=1768262400&signature=19db6c0f7d6b511acb64a0d785e94d6aca3c974310eff1b4f832add3d81ce7a3&req=dSAuEMt2lYFdXfMW3nq%2BgRtmaE%2BDMUxVERxsjdouCaq%2BVy85aJ92vfxYt3pn%0AP0J2U9u0rP1MOzt9GamKFvlKKGs%3D%0A)
- Click on **Create Tax Relief.**
[](https://downloads.intercomcdn.com/i/o/1092436237/43d7f11f08713191e8bbd1ed/image.png?expires=1768262400&signature=3924f405ab9231099b2105eb1ac0d20665a0bba14caef829e69f0b014b536b0c&req=dSAuFM19m4NcXvMW3nq%2BgYRlDg1SsvypAih6IIBgkRB2iFDtBG3VtjHb0FPB%0AQYMgFVHvPD9lbU7c0xvDrj0JHh0%3D%0A)
- Choose a **name** for your tax relief.
- **Save** to finish.
---
Now that you have set up the tax reliefs, it's time to see them in action! Here's how to add them to your employees' compensation and watch those taxes reduce:
#### Adding Tax Relief To A New Paygrade:
---
- From the menu, go to **Payroll** \> **Configurations** \> **Paygrades.**
- Click **Create new paygrade.**
- Fill in paygrade details, allowances, and tax reliefs (*Need help?* **[Click here](https://support.padehcm.com/en/articles/9246024-how-to-create-paygrades)**)
Under **Tax Reliefs**, select from your list of created **Tax reliefs.**
[](https://downloads.intercomcdn.com/i/o/1096519832/f39bbd111e63d8f593ca9dbb/taxxxxxx.gif?expires=1768262400&signature=7a08cc11fc51372b59187b4735d04e66972ccf6eec0b3d5d8f098b73c2364988&req=dSAuEMx%2FlIlcW%2FMW3nq%2BgYrlNzdgdf2ah%2F%2BtYjovBIFjP56ZfH5P1r8DypZM%0AQsxg9FmA42jzxzt0eF9v2Wtmb1o%3D%0A)
- Choose whether it's a **fixed amount** or **percentage of gross pay.**
- Enter the **annual** amount for the tax relief.
- Click **Next** until you reach the paygrade breakdown page.
- Click **Next** once more to save.
**To Edit An Existing Paygrade With Tax Reliefs**
---
- Go to P**ayroll** \> **Configurations** \> **Paygrades**.
- Use the **search box** to find the paygrade.
[](https://downloads.intercomcdn.com/i/o/1096701912/29b4ac5a38dac5254d1a9a20/Reliefsssss.gif?expires=1768262400&signature=c3f2592e3efec27bac5562fb8b3f54642168c27bda0d023ac51a9f3274a90a85&req=dSAuEM5%2BnIheW%2FMW3nq%2BgTp8fHPJ2xbFCX2PONBcfoI%2B3eoBMSZpga91yxex%0AyvkY%2BizDeMyQ%2FuiWdOwMxnOuxGI%3D%0A)
- Click the **three dots** next to it and select **Edit.**
- Navigate to **Tax Reliefs**.
- Update the **Tax Reliefs** field with the annual amount.
- Click **Next** till you get to the paygrade breakdown page, then save.
PaidHR makes it easy to implement these tax-saving measures for your team. Remember, properly set up tax reliefs can make a significant difference in your employees' take-home pay.
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