HMRC Highlights Financial Support

HMRC recently published a useful list of allowances, reliefs and other forms of support that may help individuals with their finances during the cost of living crisis ...

It is a strange thing for HMRC to do considering their role is to administer payment of taxes rather than offer financial help, however, the checklist is really useful for many, especially those who do not have an accountant or other agent to help them out.

Here are the highlights:

- Child benefit

HMRC's list does not talk about the High-Income Child Benefit Tax Charge (HICBC) or how, in certain circumstances, it's beneficial to claim child benefit, but elect not receive it. It's certainly worth looking into.

- Tax free childcare

There's a distinct lack of take-up of this benefit. It is a state benefit available to many parents and can be used to cover both after school care and during school holidays as well as for childminders, nurseries and nannies.

- Tax relief on employment expenses

Claiming tax relief on employment expenses has recently improved dramatically and should be the first port of call before considering using a paid-for claims company.

- Transferrable marriage allowance

Another allowance that generally goes unclaimed by many who are entitled. It can be sensitive to small changes in circumstances so this allowance should be reviewed regularly.

- Help to save

Help to Save is available to those claiming Universal Credit or Working Tax Credits as it is unlikely they will have spare funds to save. Not a big surprise so few people have taken up this offer.

- Payment of tax in instalments

HMRC is generally very amedable to payment of tax via installments. Where possible, it is best to speak to HMRC first to setup a Time to Pay arrangement.

So, there are a number of allowances and reliefs you can take a look at, but also remember to check your tax codes, file your returns as soon as possible, claim blind person's allowance where necessary, ensure your pension contributions are correctly claimed for, and remember your gift aid contributions.

And finally, look at your National Insurance contributions to ensure you'll get full benefits when you retire.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.