HMRC update: Britons urged to act to reduce tax bill by up to £1,188 – are you eligible? | Personal Finance | Finance


HMRC, or HM Revenue and Customs, provides important taxation support to millions of Britons each year. While the paying of taxes is not expected to be well-liked, the service can help people to deal with their responsibilities in the most pain-free way possible. Although HMRC is often most associated with the payment of tax, it may be the case the Government can help certain individuals through tax breaks.

One such break in tax is commonly made available to people who are married or in a civil partnership, and could be worth over £1,000.

However, many are unaware of the tax break or even their eligibility to claim, and thus could stand to miss out. 

The matter in question is known as Marriage Allowance, which provides husbands, wives and civil partners with the opportunity to potentially slash their tax liabilities.

Marriage Allowance rules mean a person could be able to transfer part of their Personal Allowance over to their spouse to reduce their collective tax bill.

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When taking into account taxes in the present tax year, Marriage Allowance could reduce a person’s bill by up to £250.

However, HMRC has also noted some could back claim for Marriage Allowance and get a sum which covers the last four years.

As a result, this could mean a potential payout of £1,188, a welcome sum of money for many couples, particularly in the current climate.

It is, though, worth noting a particular deadline which is fast approaching which could impact what Britons receive.

HMRC has explained: “Claims can also be backdated to April 2016, until April 5, 2021.

“After April 6, 2021, couples will only be able to claim back to the 2017/18 tax year.”

Therefore, if people wish to benefit from years gone by, they will need to bear this deadline in mind and action their claim quickly. 

Signing up for Marriage Allowance is intended to be an easy process which enables people to discover their eligibility almost instantly. 

Before a person applies for Marriage Allowance they will need their National Insurance number to hand as well as their partner’s.

Britons also need a way to prove their identity and can use any two of the following:

  • UK passport details
  • Details from Self Assessment tax returns 
  • One of a person’s three most recent payslips
  • A P60
  • Information held on a person’s credit file

The quickest way for couples to apply for Marriage Allowance is online, and people can expect to receive email confirmation within 24 hours.

However, if a person is unable to claim Marriage Allowance online, they may also consider writing to HMRC.

Alternatively, some will be able to claim Marriage Allowance through their Self Assessment tax return. 

Britons are always encouraged to approach the Government directly on the matter, as this will ensure they receive a guaranteed 100 percent of their eligible entitlement.

In the past, warnings have been issued about firms which deal with Marriage Allowance, which may take a cut of the tax break for their services. 





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