Martin Lewis says households can get £262 for two | U.Ok.Finance News
Money professional Martin Lewis has urged UK households to assert as a lot as £274 from HMRC with two tax loopholes which you can ‘backdate’ for the previous 4 years – however there’s a deadline coming in April.Martin returned on The Martin Lewis Money Show Live on Tuesday to induce people to assert any tax allowances that they might be owed earlier than the new tax 12 months begins on April 6. That’s as a result of these tax claims can be backdated for the previous 4 years, however from April, the furthest-back tax 12 months – 2020-21 – will no longer be claimable, which implies any money you’re owed from these two claims will no longer be accessible to assert backdated.There are a number of completely different tax allowances you can declare going back to 2020, however two of them which Martin talked his viewers by means of could possibly be price £262 collectively for the financial 12 months 2020, which is able to no longer be claimable from April 6, 2025.First, the Marriage Tax Allowance. This is the place {couples} who’re married legally are in a position to switch some of their tax-free allowance to their companion in the event that they don’t work. This is price £1,250 if you happen to backdate your declare for 4 years however the £250 for the 2020-21 12 months will no longer be accessible after April.Martin defined: “You need to be married or in a civil partnership. Just cohabiting with kids doesn’t count. This is where the non-taxpayer can give 10% of their tax-free allowance to the 20% taxpayer (40% it doesn’t count), and therefore they have more income that they can earn without paying tax on it.“It’s worth about £250 a year, you can back claim four years, that’s about £1,250 but if you were eligible four years ago in 2020-21, you need to claim now or you’re about to lose the ability to back-claim to that tax year.“It’s a big subject I covered it in detail in the show on February 13, watch that back.”Martin additionally mentioned that if you happen to put on a uniform to work you could possibly benefit from a tax reclaim all the best way back to 2020 as nicely.He added: “It could be a branded t-shirt, it could be a full uniform. If you do and you wash and repair it yourself, then you can claim a tax rebate, it’s the P80 form on gov.uk you do not need to pay anyone to do this for you.“You get £60 a year allowance so if you’re a basic rate taxpayer you get 20% of that, £12 a year, higher rate taxpayer it would be double that because you’re paying 40% tax.“It’s not huge, it would be £60 going back this year and four previous years, £24 going back that way but it’s worth checking out – the uniform tax rebate.”In whole, collectively each of these claims made for 2020-21 could possibly be price between £262 for a primary charge taxpayer, or simply £24 for a greater charge taxpayer (not £274, as a result of greater charge 40% taxpayers can not declare the Marriage Tax Allowance).But there are different belongings you can backdate to 2020 too which could possibly be price even more.Martin additionally talked about PPI payouts in 2020, including: “It was a big year for PPI payouts. Check right now. Many unnecessarily had tax deducted from their payouts. Tax was deducted automatically, it’s the same tax as savings.“It was taken off you, but most people can earn £1,000 a year of interest in savings without paying tax so shouldn’t have been paying it. If so, you can claim the tax back via the government R40 form on gov.uk.“It’s easy to do it yourself, don’t pay anyone. You may need some help in which case there are free PPI payout reclaim guides online that you can read that will take you through it.”The Martin Lewis Money Show Live remains to be accessible to watch on ITVX.
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