Martin Lewis reveals how Brits can get up to £2,000 boost over next two weeks by cashing in on end of tax year rewards
MARTIN Lewis has revealed how Brits can claim up to £2,000 worth of free government bonuses – if they act fast. The consumer expert, who presented the finale of the ITV Money Show tonight, has revealed how households can cash in on end of year tax rewards. Martin warned that the “the clock is ticking” […]
MARTIN Lewis has revealed how Brits can claim up to £2,000 worth of free government bonuses – if they act fast.
The consumer expert, who presented the finale of the ITV Money Show tonight, has revealed how households can cash in on end of year tax rewards.
Martin warned that the “the clock is ticking” for married couples, first time buyers, people working from home, and those with savings in the bank, the Mirror reports.
Marriage tax allowance
Savers have a few weeks left to claim a £250 refund if they were married in the 2016-2017 tax year, Martin revealed tonight.
The tax break allows people with an income of £12,500 or less to transfer up to £1,250 of their Personal Allowance to their husband, wife or civil partner – if their income is higher.
“This can be backdated up to four years – which means the clock is now clicking to claim for the 2016 year,” Martin said.
“It’s worth £250 a year but this is your last chance to claim for the 2016 to 2017 tax year. It takes just two minutes to file a claim on the government website.”
Uniform tax rebate
Through the uniform tax relief, you could get around £12 back for the current tax year.
“If you wash the uniform yourself, you could get up £60 back in the form of a uniform tax break if you backdate it for the full four years,” Martin said.
You may be able to claim tax relief on the cost of repairing or replacing tools needed to do your job, or cleaning specialist clothing.
Lifetime ISA
Martin also urged Brits under the age of 40 to make the most of a yearly £1,000 government bonus.
The cash is available through the Lifetime Isa, which pays a bonus if you use the savings towards your first home or retirement.
“For 2020, the tax year is ending which means it’s your last chance to put £4,000 in and get the £1,000 bonus,” Martin said tonight.
If you can afford to pay the chunk of money in, it pays a 25 percent bonus.
“This is also a warning for parents,” Martin added.
“The Lifetime ISA rule means you have to have it for a year to get the bonus.
“If you’re a parent and your child is hoping to buy a home one day – possibly in the next few years – open one now, you only need £1 to get started.”
The accounts are open to anyone aged 18 to 39 and you can keep saving in one until you are 50-years-old.
Cash ISAs and stocks and shares
Martin also said now is the time to make sure you’ve used up your ISA allowance for the year if you have lots of savings.
“This is because all interest you earn above £1,000 will be tax free wherever you put it – so my advice is to opt for the account that pays highest returns, don’t just focus on your ISA options,” Martin said.
Work from home tax relief
If you’ve worked from home at any point over the last year during the pandemic, you could get £6 back from your employer or £6 in tax relief from HMRC each week.
The rebate is worth £64 for a basic rate taxpayer or £124 if you’re a higher rate payer.
“This is in the form of work from home tax relief – and it applies even if you’ve worked just one day from home in the past 12 months,” Martin said.
The government says you cannot claim tax relief if you choose to work from home.
You may also be able to claim tax relief on equipment you’ve bought, such as a laptop, chair or mobile phone.
TV Licence fee
The TV Licence is rising by £1.50 a year from next month.
But Martin warned there a millions who don’t need to pay it.
“There are a million pensioners that are missing out on pensions credit – and if you qualify, you don’t need to pay the TV Licence,” he said.
Also, if you’re not watching live TV, you might be able to avoid the charge.
Most read in Money
Council tax
Council tax is also rising next month – but Martin said thousands, including students and people who live alone, could be eligible for a discount, or a refund.
Martin has previously urged Brits to check if they can lower their council tax bill by thousands of pounds.
Households could be paying too much money on their council tax if they’ve been placed in the wrong band.