Are you making the most of HMRC’s available reliefs and allowances?

HMRC have recently published a list of their available reliefs and allowances – are you utilising the financial support which is available? In our latest blog we highlight the tax savings you could be making.

Child Benefit

Child Benefit can be claimed if you’re responsible for raising a child who is:

  • under 16
  • under 20 if they stay in approved education/training

It is important to note that only one person can claim Child Benefit for a child. It is paid every 4 weeks, and there is no limit to how many children can be claimed for.

However, if you (or your partner’s) individual income is over £50,000, you may be taxed on the benefit, otherwise known as the ‘High Income Child Tax Benefit Charge’. Use the Child Benefit tax calculator by clicking here to determine how you may be affected.

Tax-free childcare

You can claim up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. If your child is disabled, this increases to up to £1,000 every 3 months (up to £4,000 a year).

Check your eligibility for tax-free childcare, including how to apply, by clicking here.

Income tax relief for your employment expenses

Claim income tax relief on money you’ve spent on things like work uniform and clothing, tools, business travel and business fees or subscriptions.

Marriage Allowance

Marriage Allowance allows you to transfer 10% (£1,260) of your personal tax allowance to your husband, wife, or civil partner if you earn less than the personal tax allowance (currently £12,570).

Help to Save

Help to Save is a type of savings account for those who are entitled to Working Tax Credit or are in receipt of Universal Credit. The Help to Save scheme gives a bonus of 50p for every £1 saved over 4 years.

Child Trust Funds

A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011. You can add up to £9,000 per year to an existing Child Trust Fund, and there is no tax to pay on the income or any profit it makes.

Payment of tax in instalments (Time to Pay)

If you are unable to pay your tax bill on time, contact HMRC as soon as possible, as you may be able to pay what you owe in instalments (sometimes called a Time to Pay arrangement), depending on your circumstances and what you can afford. Find out more by clicking here.

Get in touch

It is more important than ever to ensure you are making the most of your available reliefs and allowances, whilst they are still available. For a further discussion on any of the financial support mentioned above, or advice tailored to your specific circumstances, please get in touch by emailing enquiries@pmm.co.uk or by calling 01254 67931.

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