Learn more about five Money Saving tips. Quick wins, straightforward to implement and access. Learn more your tax entitlements and generate funds
Married or civil partnership, it’s all about the love, but also some tax savings to be had. You can save £250 a year in tax in claiming your partner’s unused personal allowance. Double bonus, you can backdate your claim and get a tax windfall up to £1,000!
How it works
Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner.
This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year).
To benefit as a couple, you (as the lower earner) must normally have an income below your Personal Allowance – this is usually £12,570.
This combo of numbers & letters is used by your employer, and pension provider to calculate how much tax you pay. It’s worth checking because it’s not always correct, and you may be paying too much tax. If it’s been wrong for a while you can go back at least 4 years!
Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use.
Find your tax code
Use the check your Income Tax online service within your Personal Tax Account to find your tax code for the current year. You can also view your tax code for:
- a previous tax year
- the next tax year
Lots of business expenses aren’t claimed which means that you may be paying more tax than you should. Typical expenses include working at home, travel, using your car, bike, telephone, clothing, training courses, subscriptions, and computers. If you’ve not claimed all your business costs before, you can go back at least four years! Kerching.
Rent a room
Another Spare space in your house and you want to earn up tax free money! Well under the Rent a Room scheme you can have a lodger and get rent up to £7,500 completely tax free! Up to £7,500 this tax free sum is automatic, no forms to fill in or anyone to inform.
You can opt in to the scheme at any time if:
- you’re a resident landlord, whether or not you own your home
- you run a bed and breakfast or a guest house
You cannot use the scheme for homes converted into separate flats.
Read the Rent a Room helpsheet for more detailed information on how to complete the form, and when it makes sense to opt out of the scheme.
Over 65 and working. You’re not alone, you’re among the 1.3 million people still working. You don’t pay National Insurance once you get to 65, so check your employer knows this and isn’t taking it off your pay. You can get a refund if you’ve overpaid, and you can claim back for previous years – that could be worth a lot
You pay National Insurance contributions to qualify for certain benefits and the State Pension.
Who pays National Insurance
Moreover, you pay mandatory National Insurance if you’re 16 or over and are either:
- an employee earning above £184 a week
- self-employed and making a profit of £6,515 or more a year
You may be able to pay voluntary contributions to avoid gaps in your NI contributions.
More on Money Savings tips. Working parents, with children under 11, are entitled to Tax-Free Childcare – up to £2,000 per year per child, £4,000 if your child is disabled. Tax-Free Childcare applies for single parent working households as well. Childcare covers childminders, nurseries, after school clubs and play schemes
This short vlog on Money Saving Tips is handy stuff to know. Furthermore, they are useful across the ages, and whether you are tax payer or not.
Furthermore, you can improve your financial understanding and well-being. Plus make more profit, save tax and time, and your money mindset. How wonderful is that?
Get in touch with us to help make your life easier and stress free.
Contact us if you need help figuring out and sorting your financial and cash flow planning, your tax , payroll and other accounting and business matters. For more business and finance , news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.
Pro Active Resolutions
The Numbers Crew- Here to help you!