For many, December may well turn out to be an expensive time of year. The series of bank holidays over the festive season may also provide opportunity for some to review their finances. On Monday, Martin Lewis has suggested a way in which Britons can claim money back within moments.
Speaking on Clare McDonnell’s show on BBC Radio 5Live, he highlighted five different ways it may be possible to reclaim cash.
He began by explaining there has been a temporary change regarding claiming tax relief for additional household costs, for those required to work at home.
Martin said: “Number one is have you been required to work from home even for one day since April 6? If so, and I’ve been going on about this on here, and on my show and on my site ever since I discovered the new change in October, and 1.25 million people have now applied – so why not join them?
“The typical gain here is £60 or £100,” he continued, adding the former is for basic rate taxpayers and the latter higher rate taxpayers.
“Effectively, there is a working from home allowance. You’re allowed to claim an allowance of up to £6 tax-free. Your firm may give you £6 tax-free, in which case you can’t do this. But otherwise, you can claim £6 tax-free without receipts for working from home,” adding the £6 is a weekly figure, and directing people to the micro portal on HMRC’s website.”
Martin also spoke about the Marriage Allowance.
“Number two, are you married or in a civil partnership? If so, there are 2.4 million couples missing out on a tax break.
“The typical gain from this one? £1,188. So this one is a big one.”
Martin explained this works via a non-taxpayer can apply to move some of their Personal Allowance to their spouse or civil partner, provided they’re a basic rate taxpayer.
It’s also possible to back claim the payment for up to four years, provided the couple was eligible for those years.
He also touched upon the power of attorney application refund, explaining there are 1.3 people who may be owed money back.
“Typical gain, £45 per application,” the Money Saving Expert founder said. “If you applied in England and Wales between April 2013 and March 2017 for a power of attorney, you paid £110. It should have been lower because it should have been in proportion to costs.
“You’ve got until January 31 next year to get on the GOV.UK website. Fill in a form, you’ll just get your money back.”
Moving on, he addressed graduates who have previously had a student loan: “Next, did you start repaying your student loan too early? This could be hundreds and hundreds of pounds.
“In effect you’re only supposed to start repaying your student loan in the April after you graduate, roughly nine months after you leave university for most people.
“But, many employers – hundreds and thousands – took the money beforehand. They said, ‘Oh well you’re earning over the threshold. We should take the money.'”
Martin clarified this is not correct, and those who find themselves in this situation can call up the Student Loans Company and ask to get the money back.
Concluding his five tips, the finance expert said: “Finally, did you wear a uniform to work?
“If you wear a uniform to work, and you have to, I’m talking branded T-shirt or overall and you wash it yourself, and you don’t wear it anywhere else, you are entitled to a tax rebate.”
This is also something which can be done via the government’s P87 form, and can be backdated for up to four years, Martin explained.
Published at Tue, 15 Dec 2020 07:15:00 +0000