Don’t Pay Too Much Tax

There are several HMRC programs that can reduce your taxable income. These aren’t shady scams but rather perfectly legitimate offers from the government, though admittedly ones they don’t always shout about.

Marriage Allowance

If you are married or in a civil partnership you could get up to £252 a year through Marriage Allowance. That’s where one partner transfers £1,260 of their personal allowance to the other partner, who’ll then pay less in tax. The allowance is only available (and only makes financial sense) if one partner is a basic-rate taxpayer and the other doesn’t pay income tax and you should always crunch the numbers before applying. The person making the transfer (the non-taxpayer) can apply online at www.gov.uk/apply-marriageallowance. The person receiving the transfer (the taxpayer) can’t make the application. All you need to apply is both partners’ national insurance numbers and proof of identity. HMRC will then apply the changes to both partners, either through their tax code or self-assessment. When you apply, you can backdate your claim to cover any of the previous four tax years where you met the criteria. For previous-year claims, HMRC simply sends a cheque or bank payment for the relevant amount to the partner receiving the personal allowance transfer. Once you’ve had an application approved, the personal allowance transfer will remain in place until you cancel it.

Working From Home Allowance

If you’ve worked at home regularly (even if it’s part-time or a ‘temporary’ arrangement during COVID), you can get tax relief to compensate you for your costs. This tax relief will reduce your taxable income and thus you’ll pay less tax. You can claim it at www.tax.service.gov.uk/claim-tax-relief-expenses/only-claiming-working-fromhome-tax-relief. You have two ways to work out the amount of the relief. One is to calculate the actual extra costs you’ve incurred, which can include a share of utility bills and costs such as office equipment. The other is to take a flat amount of £6 a week, which doesn’t require any evidence of the costs. It’s a small amount but adds up to more than £60 a year just for filling in a short online application. You can also backdate claims to cover two years, though the rate was £4 a week until April 2020.

Work Uniform Claims

If you’re an employee with a work uniform and pay to clean it yourself, or you pay for repairing work equipment, you can claim tax relief on these costs. The uniform expenses are only for clothes that you have to wear for work and people wouldn’t normally wear outside of work. For example, you couldn’t claim for an ordinary suit. You can claim the actual expenses of cleaning or repairs, but you will need to apply by post and send supporting receipts to HMRC. Alternatively you can claim a flat rate based on occupation. For example, army staff can claim £100 a year, ambulance staff £185 a year and prison officers £80 a year. Full details are at www.gov.uk/guidance/job-expenses-for-uniforms-work-clothing-and-tools. To advertise in The Villager and Town Life please call 01767 261122

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