Households across the country are facing a year of price rises, as taxes go up and energy costs soar.
From April, the average family will see gas and electricity bills rise by around £700, as inflation continues to bite and a National Insurance tax increase comes into effect. There has never been a better time to get on top of your finances.
There are a number of moves people can make to claw back cash from the taxman, as well as receiving a refund if you've overpaid council tax. Some people could also see their council tax bands renewed, meaning lower payments in future too.
READ MORE: Martin Lewis issues urgent mortgage warning to homeowners
From claiming work from home tax relief to the marriage allowance, here are some ways you can get some of the money you have paid out back, according to the Mirror.
1. Check your council tax
Households across the UK are facing huge council tax hikes from April as the cost of living crisis continues to bite. The official cap on how much local authorities can increase council tax by is 5% – this is made up of a 2% council tax rise and an additional 3% for social care.
Councils can technically ask to charge more than this, but they have to hold a referendum with residents first. Any new council tax rates always come in from the start of April, to tie in with the new tax year.
If you're retired, live alone, are on benefits or are disabled, it's worth checking if you can claim a discount. Millions of people may also be on the wrong tax band. If you act now, you may be able to escape the rise entirely.
One couple claimed back almost £8,2000 after following advice from finance guru Martin Lewis. The pair, known only as Suzanne and Sami, had been in the wrong council tax band for 24 years - meaning they'd been overpaying for more than two decades.
They decided to check if they were in the wrong band after reading Martin Lewis' Money Saving Expert website. The article claims up to 400,000 homes in England and Scotland may be overpaying too.
Suzanne and Sami emailed MSE back in October, saying: "After reading Martin's advice, we checked our council tax band. "Ours was higher than our neighbours', so we went through the process and received an £8,192 refund - after paying the wrong amount for 24 years. Thank you. Martin... keep up the good work."
2. Get £125 from the taxman
Millions of people who have worked from home over the past year have until April 5 to claim £125 worth of tax relief from HMRC. The rebate applies even if you've only worked one day from home - and it's easy to claim online.
The money - which can cover things like broadband and heating costs - will automatically be returned in your next pay slip with your tax code adjusted accordingly. You don't need to submit receipts to make a claim.
The rebate is paid based on the rate at which you pay tax. For example, a worker that pays the 20% basic rate of tax and claims tax relief on £6 a week, would receive £1.20 a week in tax relief (20% of £6 a week) towards the cost of their household bills.
You can claim £2.40 a week if you pay the higher 40% tax rate. Over the course of a year, this means workers could reduce the tax they pay by £62.40 or £124.80.
If you miss the deadline, you won't be locked out completely. HMRC told The Mirror you will have to claim it separately and will receive a lump sum payment instead. If you had to work from home because of the pandemic, you can currently back date it two years.
3. Use the marriage tax allowance
The marriage tax allowance allows a non-taxpaying spouse to shift 10% of their annual tax-free allowance to their basic-rate (20%) taxpaying partner. This is worth £252 this year, and you can claim back up to four tax years, as long as you were eligible during that time.
This means backdating can get you as much as £970. People in a civil partnership are also eligible for the allowance. Unfortunately, just living together doesn't count.
One of you needs to be a non-taxpayer, earning less than the £12,570 personal allowance between 6 April 2021 and 5 April 2022. The other partner needs to be a basic 20% rate taxpayer.
This means you'd normally need to earn less than £50,270. Higher or additional-rate taxpayers aren't eligible for this allowance. You both must also have been born on or after 6 April 1935.
If you are claiming the allowance for the current year, the higher earner will see it deducted in the form of paying less tax on their wages or salary. If you are claiming for previous years, it will arrive via bank transfer or cheque.
4. Claim back cash for work uniform
Millions of hospital workers, shop staff and hairdressers are unaware they could get their expenses back from HMRC if they've had to pay for uniform in the past tax year. It's simple to claim and the average payout is around £60.
You can find out exactly how much you are owed by following the steps on this online tool. Each claim takes around three weeks.
Who can claim it? You might be able to claim tax relief if:
- You use your own money for things that you must buy for your job
- You only use these things for your work
What can I claim it on?
- Repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
- Cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
- Business mileage (not commuting)
- Travel and overnight expenses
- Professional fees and subscriptions
5. Set up a direct debit for your Council Tax rebate
Bill-payers are being advised to set up a direct debit for their council tax payments before April to ensure they receive the £150 rebate on time. The Energy Rebate scheme was announced by the Chancellor earlier this month to help people cope with rising energy bills.
It will see eligible households in England in Council Tax Bands A-D properties receive a £150 energy rebate payment from their council from April this year. This includes those who already receive help with paying some or all of their council bill through local council tax support.
Cllr Shaun Davies, chair of the Local Government Association, said: “Having a direct debit set up will mean councils can automatically pay the £150 energy rebate straight into your bank account. It is quick and easy to set up to pay council tax by direct debit via your council’s website. You can still get the money if you don't have a direct debit set up, but it could take longer as your council will have to contact you and then you'll have to make a claim."
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