Home Lifestyle Martin Lewis issues one-week taxpayers warning to avoid losing 1,000s

Martin Lewis issues one-week taxpayers warning to avoid losing 1,000s

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Martin Lewis has issued a one-week warning to taxpayers (Picture: Ken McKay/ITV/Shutterstock)

As the beginning of the new financial year looms, Money Saving Expert Martin Lewis has issued a one-week warning to UK taxpayers who could risk losing out on hundreds if they don’t take action.

‘[There are] a number of tax allowances you can claim back four tax years before the current one,’ he wrote in his latest newsletter.

‘So that means when the new tax year starts on April 6 we say bye-bye to the 2019/20 tax year, (specifically 6 Apr 2019 to 5 Apr 2020), so to claim anything from then, do it now.’

Marriage tax

Firstly, Martin suggested those who are either married or in a civil partnership should check whether they’re eligible for marriage tax – or risk losing up to £250.

2.1 million couples are eligible for the marriage tax allowance – but don’t claim it (Picture: Getty Images)

Approximately 2.1 million couples are eligible for the marriage tax allowance, but don’t claim it.

The policy means you can transfer £1,260 of your personal allowance to your spouse or civil partner, which reduces their tax by up to £252 in that tax year.

Martin says that if you’ve been eligible since the 2019/2020 tax year, you can backdate it for a gain of £1,260.

‘Almost everyone eligible will gain, bar the rare circumstance where the non-taxpayer almost earns the £12,570/yr needed to pay tax and the taxpayer only just earns over this,’ Martin adds.

Payment Protection Insurance (PPI)

Elsewhere, those who claimed PPI payouts in 2019 have until the April deadline to reclaim the tax back.

The original deadline to reclaim PPI was August 29, 2019, and the PPI reclaim pays you back what you paid in, plus an added 8% annual statutory interest.

This interest counts as savings interest for tax purposes, and as Martin explains, this means that 20% taxpayers can earn £1,000 per year tax-free.



Martin Lewis urges everyone born between these years to put £1 in bank account now

In a recent Budget Special episode of the Martin Lewis Money Show on ITV, the financial guru previously urged those aged between 18 and 39 to take advantage of a scheme to help them get on the property ladder.

He said anyone within this age group who wants to buy a house costing up to £450,000 to put £1 in a Lifetime ISA (LISA) account now, both to reap the rewards it offers and ensure they don’t miss out due to a cut-off.

The government-backed scheme gives first time buyers a 25% bonus on savings of up to £4,000 a year in the tax-free account.

While the bonus is only payable after a year, you don’t have to put the full amount in straight away to receive it, which could add up to a maximum of £1,000 for each year you have it.

Savers can put money into a LISA until they turn 50, but they need to make their first payment before reaching 40 years old to receive bonuses.

Tax code

Did you know that it’s actually up to you, not HMRC or your employer, to check that your tax code is correct? This series of letters and numbers dictate the taxes that are taken off your payslip – so if it’s wrong, you might’ve been mindlessly overpaying.

Check your tax code (Picture: Getty Images)

If you have, you’re due a rebate – and you have until April 5 to do so for the 2019/2020 tax year.

Uniform tax

Wear a recognisable uniform to work? You could be due tax back.

‘Even if it’s just a branded T-shirt, if you wash or repair it yourself, you can likely claim a tax rebate,’ Martin explains.

The minimum allowance is £60 per year, which is worth £12 per year for a basic 20% taxpayer and £24 for a higher 40% payer.

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