Martin Lewis urges everyone to do three things by April or risk losing thousands


Money-saving expert Martin Lewis has shared three things everyone in the UK should check before the start of the next tax year – or risk losing thousands of pounds.

Martin’s warning relates to tax refunds before April 5, when the current tax year ends.

Martin explained how you might actually be able to claim the money if you’re on the wrong tax code, didn’t claim the marriage tax allowance, or received a PPI payment.

READ MORE –Facebook users have issued an urgent warning to make changes now or risk being blocked

With all of these examples, you can only claim for the last four tax years. This means you only have a few weeks left to apply for the 2017/2018 tax year – after April 5 passes, you will only be able to go back as far as the 2018/2019 tax year, reports the Mirror.

Here’s everything Martin Lewis explained you need to check before the start of the next tax year:

Check your tax code – worth £1,000

Tax codes are used by your employer or pension organization to determine the amount of tax withheld from your salary or pension.

But millions of workers are listed on the wrong tax code every year – and could potentially be owed thousands of pounds.

How much you could claim depends on how much you earn and how long you’ve had the wrong tax code.

The most common code for the current tax year is 1257L for people who have a job or a pension – although not everyone is on this point.

You can check your latest payslip to see your tax code, or on your P45 if you recently quit your job.

Get all the latest Glasgow news and headlines straight to your inbox twice a day by signing up to our free newsletter.

From breaking news to breaking news on Scotland’s coronavirus crisis, we’ve got you covered.

The morning newsletter arrives before 9 a.m. daily and the evening newsletter, hand-curated by the team, is sent between 4 and 5 p.m., giving you an overview of the most important stories we covered that day.

To register, simply enter your email address in this link here.

Check Wedding Tax Allowance – worth £1,220

The Marriage Tax Allowance allows eligible couples to transfer £1,260 of their personal allowance to their spouse or civil partner to reduce their annual tax bill.

Your personal allowance is the amount you can earn tax-free each tax year.

For the current 2021/22 tax year, the tax relief you can get is worth £252 – but if you’re able to make a claim for the previous four tax years, you could get £1,220 back .

As the name suggests, you must be married or in a civil partnership to benefit from the marriage tax allowance.

One of you must also be a non-taxpayer while the other must pay the basic tax rate of 20%.

This usually means that one of you pays no tax or earns less than £12,570, while the other earns between £12,571 and £50,270.

Other eligibility criteria you must meet include that you were both born on or after April 6, 1935.

You can apply online via the HMRC website or by calling 0300 200 3300.

Check PPI Claims Tax – worth £1,000

PPI was an insurance policy attached to credit agreements such as loans, mortgages or credit cards.

But it was often mis-sold to customers – for example, to those who could never claim it, or in cases where people were wrongly told they needed it.

If you received a payment from a mis-sold PPI – the deadline for doing so through the Ombudsman passed in August 2019 – it might be worth checking whether you also have a tax refund.

Most banks and lenders have automatically deducted tax from PPI payments, although not everyone has to pay it.

When the payments were made, the banks refunded the PPI premium plus 8% statutory interest.

The legal interest portion is taxed as a savings, and most companies deduct it automatically.

But since April 2016, more people are liable for part of this tax thanks to the introduction of the personal savings allowance.

This allows basic rate taxpayers to earn £1,000 a year of tax-free interest on their savings, or £500 for higher rate taxpayers.

To recover any tax due on PPI payments, you will need to complete Form R40 on the website.


About Author

Comments are closed.