MARTIN Lewis has warned that hundreds of thousands of Brits could be missing out on major tax rebate cash from HMRC.
Speaking on his ITV show tonight, the money saving expert discussed how people who work in uniform, as well as married couples, can get money back from the tax man.
ITVMartin Lewis explained a number of tax rebates on his ITV show tonight[/caption]
ITVHe revealed that married couples, people who got PPI payouts and anyone who works in a uniform could be eligible for money back[/caption]
Martin explained that those who wash or repair their own work uniform are entitled to an allowance to cover the cost, even if it’s just a branded T-shirt.
The minimum allowance is £60 a year, which he explained would mean a £12 a year gain on the basic rate of tax, or £24 on the higher rate.
He warned that there was no need to pay anyone to claim this rebate for you as it’s easy to do yourself.
A viewer messaged into the show to reveal that the handy hack had saved the business he worked for around £14,500 after a group of 40 employees took advantage of the advice.
Other tax advice included a rebate for married couples in certain circumstances.
Specifically couples where one person doesn’t pay income tax and the other only pays that basic rate could be in for some cash back.
This also includes people in civil partnerships, but not unmarried couples who live together, regardless of the length of time.
In such cases, the non-taxpayer can transfer a portion of their income tax allowance, which they aren’t using, to their spouse.
This can result in over £200 a year back in your bank account, which over the four year claiming period can total upwards of £1,000.
However, Martin urged people to be quick to put his tips into action as the tax year end in April is the cut off for the period.
This means that if you were entitled to the allowance in the 2018/19 tax year you have to claim it by April 5 this year.
Once you have been found to be eligible, you will continue to be given the refund unless your circumstances change, such as the previously non-taxpaying partner beginning to pay income tax.
Finally, Martin revealed that people who made a PPI claim before the deadline in August 2019 would have had 20% tax automatically deducted.
However, most people don’t have to pay tax on savings interest as there is an allowance of up to £1,000 a year for lower-rate taxpayers and £500 for those on the 40% higher rate.
Therefore, some or all of the payment from your PPI claim should have been tax free based on your circumstances in the tax year that you received it.
Martin particularly advised anyone who was paid in 2018/19 to check if they paid tax on it.
If you were charged in any tax year, you can claim the money back using an R40 form via gov.uk.
The form is quite complicated, but step-by-step guides are available online.
ITVIf you wash your own uniform, you could be entitled to a tax allowance, which the show revealed saved one business over £14,000[/caption] Read More