Yahoo News HMRC could owe you over £3,000 if you complete these simple checks
UK taxpayers could be in for a financial windfall by conducting simple checks to see if they are due any money. This could result in hundreds or even thousands of pounds being returned.
A significant number of UK employees may have overpaid taxes and could be owed money by HMRC. Given the complexity of tax codes and allowances, it's easy to overlook refunds that you're entitled to.
Many taxpayers aren't aware that they can not only claim a tax refund for the previous tax year but also backdate claims for up to four years. The average four-year refund currently stands at just over £3,000.
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Janet Frodsham from Cupid PR explains how to check if HMRC owes you money and reclaim what is rightfully yours.
DWP is depositing a Universal Credit £470 cost of living boost into thousands of accounts, reports Birmingham Live.
Check your tax code
Your tax code determines the amount of tax deducted from your earnings. If your tax code is incorrect, you could be overpaying taxes.
Here's how to ensure your tax code is correct:
Check your payslip: Your tax code should be listed on your payslip. Common tax codes include 1257L for the standard personal allowance.
Contact HMRC: If your tax code seems incorrect or you have multiple jobs, contact HM Revenue & Customs to rectify it. An error could result in overpaid taxes that you can claim back.
Claim tax relief on work-related expenses
If you've spent your own money on work-related expenses, you might be eligible to claim tax relief. Here are some examples:
Travel costs: If you're required to use your own car for work (excluding commuting), you can claim Mileage Allowance Relief.
Professional fees and subscriptions: You can claim tax relief on fees or subscriptions to approved professional bodies.
Uniforms and work clothing: If you must wear a uniform for work and have to wash, repair, or replace it yourself, you can claim a tax rebate. This applies to many occupations, from healthcare workers to retail staff. You can claim for the current tax year and up to four previous tax years.
Submit a claim for Marriage Allowance
Marriage Allowance allows you to transfer a portion of your personal allowance to your spouse or civil partner. If one partner earns less than the personal allowance threshold (£12,570), they can transfer up to £1,260 of their unused personal allowance to the higher-earning partner.
You could knock off up to £252 a year from your tax bill with this method. Furthermore, eligible couples have the choice to backdate their claim for the previous four tax years, and they could also be entitled to a lump-sum payment of more than £1,000.
People can find out in 30 seconds if they are eligible by using the online Marriage Allowance Calculator. The easiest way to claim Marriage Allowance is online via GOV.UK.
Reclaim PPI and pension misselling compensation
If you've been compensated for mis-sold Payment Protection Insurance (PPI) or pensions, did you realise that you may have paid tax on your compensation which you might be able to reclaim?
For those who had tax deducted from their PPI compensation, completing an R40 form will allow the opportunity to reclaim it. In a like manner, any tax paid on compensation due to pension misselling can also be reclaimed.
Janet Frodsham, head of finance at Cupid PR, remarked: "By taking these steps, you can ensure that you're not only receiving all the benefits and allowances you're entitled to but also potentially reclaiming money owed to you by HMRC. It's worth checking you might be due a refund worth hundreds or even thousands of pounds."
