Here are 5 other areas which you might want to explore, to see if you are entitled to any more money from the taxman – just in time for Christmas. (Yes, we went there!)
- Uniform Tax Relief
If you wear a uniform at work, and have to wash, repair or replace it yourself, you may be able to claim tax relief on the cleaning, repairing or replacing.
The amount you’re able to claim in tax relief depends on the industry which you work in, but the standard flat rate expense for uniform maintenance is £60 (for 2018/19). You may be entitled to up to 5 years of tax back, which could be worth more than £200 depending on the industry and so is definitely worth claiming.
You may get approached by a claims firm who will offer to do this for you, but it’s something you can do yourself for free, by filling out a P87 claim form online
- Check your Tax Code!
Even the taxman can get things wrong from time to time, and this is especially common if you move jobs, get promoted or change your employment status.
“If you receive an income via PAYE, be that employment or pension income, make sure you check your tax code. Your PAYE code determines how much tax you pay, and it is down to you to make sure you are on the right code, otherwise you could be paying too much tax.” (Katie Bladen)
The most common mistake is to put someone on an emergency tax code when they get a new job or change their job title.
You will find your code on your P45, the PAYE Coding Notice sent by HMRC or on your wage slip
- Find out if you can get Tax Credits
Tax credits are tax-free state benefits that provide extra money to those looking after children, disabled workers and other workers on low incomes.
The two main tax credits are working tax credits and child tax credits.
Keep in mind that you can't claim tax credits if you already receive Universal Credit
- Put money into Pensions
Although not an instant tax saving, as your money can’t be accessed until you’re 55, pensions still offer a tax-efficient way to invest for your retirement.
A pension fund grows tax-free, and any contributions you make into the plan also receive income tax relief at your highest marginal rate (so 20% for a basic rate tax payer)
The maximum you can contribute in any one tax year is the greater of £3,600 or 100% of your earnings. This is capped at the Annual Allowance (£40,000 for most people)
Contributions to your employer's pension scheme (including any additional voluntary contributions you make) can be made from your gross pay, before any tax is charged
- Consider a Lifetime ISA
Introduced by George Osborn, in his final Budget as Chancellor, these are designed to encourage saving for retirement and/or a deposit on a first home.
If you are between 18 and 40 then you can save £4,000 a year into a LISA with the government topping up your contributions by 25% each year until you turn 50.
Unlike pension funds, the money can be withdrawn before the age of 55, but you may face a withdrawal charge depending on how old you are, or how you want to use the money.
These charges won’t apply if you are using the money to buy your first home or if you are 60 or over.
So, there you have it – our top 5 tax saving tips! If you have any queries then just let one of our team know