How do I claim tax back if my tax code is wrong?
If your tax code is wrong on your payslips, you can save tax by calling HMRC and they will adjust your code to pay you back. This code determines the amount of PAYE (Pay As You Earn) tax that is deducted from your pay. This year’s tax code is 1250L if your code is lower than this then you may be paying too much tax. When you do call HMRC it is best to ring in the morning between 8:00 am when phone lines open, and around 11:00 am.
Am I eligible for a marriage tax refund?
A four-year marriage allowance claim can give you up to £1250 tax back from HMRC. If you are married or in a civil partnership. The lower-earning partner can transfer a chunk of their annual tax-free personal allowance to their partner if:
- The lower-earning partner earns under £12,500 (which means they would have some spare tax allowance to give)
- The higher-earning partner must earn under £50,000 to be eligible.
Can I get tax back from my food and travel expenses?
At Swift Refunds, we help mobile workers claim these types of expenses, the average refund which people save tax on is £2,500 on a four-year claim. If you have a lot of expenses for example food on the go, travel, cleaning of uniform and tools then the refund could be significantly larger. If you are a higher rate taxpayer, then you would receive an even bigger tax refund.
What is a season ticket loan scheme?
A season ticket loan scheme is where your employer pays for an annual travel ticket, with the cost then deducted from your pay. Commuting to work using public transport can be expensive, so it is worth asking your employer if they are a part of the scheme, potentially saving you hundreds on travel costs.
Can I save tax by claiming back on childcare costs?
Working parents can claim up to £500 every three months (that’s up to £2,00 a year) per child to cover childcare costs such as nurseries, childminders, nannies, and after-school clubs. While 1.3 million families are eligible for this scheme, roughly one million are missing out on the benefit. The scheme is available to all workers including self-employed workers, as long as they meet the following criteria:
- The child must be 11 or younger
- Parent/Parents earning a minimum of £142 a week but less than £100,000 a year
can I claim tax back on my pension?
A pension scheme allows you to get tax relief on pensions, meaning money that would have gone to the government as tax goes into your pension instead, helping you save money for later in life. Some pension schemes may be run by your employer or you can set one up yourself.
What is the rent a room scheme?
The rent a room scheme allows tenants to earn up to £7,500 a year tax-free for letting out furnished accommodation in their home. The tax exemption is automatic if you earn less than £7,500. This means you do not need to do anything. If you earn more than this you must complete a tax return.
Can I claim the running costs of my car?
If you are self-employed and use a personally owned car for business, some of the costs associated with running the car are allowable for tax purposes, so you can claim these expenses in your accounts to reduce your profits and pay less tax. All you need to do is add up all motor expenses for the year and calculate the percentage of miles for business that has been done.
Can I earn interest on personal savings?
With personal savings allowance, you could earn up to £1,000 of interest without paying any tax depending on what tax band you are in. If you are a basic rate taxpayer (20%) your tax-free allowance is £1,000 and if you are a higher rate taxpayer (40%), your tax-free allowance is £500.
Can I earn dividends without paying tax?
If you own shares in a company, each year you can earn up to £2,000 in dividend income without paying any tax. Tax on dividends is at a lower rate compared to the rate you pay on money from a pension or work.
