Latest news with #HMRCgovuk
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Nationwide, NatWest, Lloyds customers issued HMRC warning
A lot of banks nowadays offer two or three-year fixed savings accounts as a way to grow your funds. But while you're counting the cash at the end of the term, you could be hit with a tax demand because HMRC views the interest from these accounts as income within a single year. Got a #sidehustle? 💸 We're here to help you get your tax right. ✅ Click below to check if you need to tell us about your side hustle income today. ⬇️ — HM Revenue & Customs (@HMRCgovuk) June 4, 2025 For some savers, the final payout could nudge them over the tax-free threshold, triggering a tax event. However, it's key to remember that this doesn't apply to cash ISA accounts, which remain tax-free up to £20,000. The current tax-free interest earnings cap for basic-rate taxpayers sits at £1,000 annually. Those on the higher-rate can pocket up to £500 without owing tax, but additional-rate taxpayers aren't afforded any tax-free interest allowance. Laura Suter, personal finance director at AJ Bell, told the Star: "Many people won't realise that [fixed rate accounts] could leave them with a tax headache in the future." She added: "You are taxed on the interest on your savings when it is accessible by you. "So if you pick a fixed-rate savings account that pays out all the interest at maturity, for tax purposes all of that interest will be counted in one tax year. Recommended reading: "This means that the interest from just one account could take you over your Personal Savings Allowance on its own." Ms Suter suggested getting an account where interest is paid out monthly or annually instead. She continued: "This means it is spread across different tax years. "Or you can opt for a fixed-term ISA savings account, where you won't pay any tax on the interest."
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
HMRC is urging anyone with kids aged 15
For someone with 13 missing years, who lives for another 20 years, it can be worth as much as £100,000 or more in State Pension payments. If you became a parent before May 2000, you may have Home Responsibilities Protection (HRP) missing from your National Insurance record. This could mean you're missing out on State Pension payments. Check if you can apply for HRP below. ⬇️ — HM Revenue & Customs (@HMRCgovuk) May 19, 2025 What is Home Responsibilities Protection? Home Responsibilities Protection (HRP) was given for full tax years (6 April to 5 April) between 1978 and 2010, if any of the following were true: you were claiming Child Benefit for a child under 16 you were caring for a child with your partner who claimed Child Benefit instead of you you were getting Income Support because you were caring for someone who was sick or disabled you were caring for a sick or disabled person who was claiming certain benefits National Insurance credits for parents and carers replaced HRP from 6 April 2010. Who qualified automatically for HRP? Most people got HRP automatically if they were: getting Child Benefit in their name for a child under the age of 16 and they had given the Child Benefit Office their National Insurance number getting Income Support and they did not need to register for work because they were caring for someone who was sick or disabled If your partner claimed Child Benefit instead of you, you may be able to transfer HRP from a partner you lived with if they claimed Child Benefit while you both cared for a child under 16 and they do not need the HRP. If you reached State Pension age before 6 April 2008, you cannot transfer HRP. HRP for caring for a sick or disabled person If you spent at least 35 hours a week caring for someone with a long-term illness or disability between 6 April 1978 and 5 April 2002, you may also be able to claim. They must have been getting one of the following benefits: Attendance Allowance Disability Living Allowance at the middle or highest rate for personal care Constant Attendance Allowance The benefit must have been paid for 48 weeks of each tax year on or after 6 April 1988 or every week of each tax year before 6 April 1988. If you were getting Carer's Allowance You do not need to apply for HRP if you were getting Carer's Allowance. You'll automatically get National Insurance credits and would not usually have needed HRP, but check - just to be sure. Recommended reading: If you were a foster carer or caring for a friend or family member's child You can also apply if, for a full tax year between 2003 and 2010, you were either: a foster carer caring for a friend or family member's child ('kinship carer') in Scotland All of the following must also be true: you were not getting Child Benefit you were not in paid work you did not earn enough in a tax year for it to count towards the State Pension Married women or widows You cannot get HRP for any complete tax year if you were a married woman or a widow and had chosen to pay reduced rate Class 1 National Insurance contributions as an employee (commonly known as the small stamp), or you had chosen not to pay Class 2 National Insurance contributions when self-employed
Western Telegraph
26-04-2025
- Business
- Western Telegraph
HMRC urging parents to claim £2,000 tax-free childcare
Tax-free childcare sees parents given up to £2,000 a year - split up into £500 each quarter - for each of their children to help with the costs of childcare. This goes up to £1,000 every three months if a child is disabled (or up to £4,000 a year in total). To get tax-free childcare, parents just need to set up an online childcare account for each child. For every £8 they pay into this account, the government will pay in £2 to use to pay a nursery or childminder. Are you missing out on egg-cellent childcare savings? 🥚 Chick out our Tax-Free Childcare scheme and sign up to unlock savings of up to £2,000 a year per child on approved childcare costs. 💸🐣 Find out more 👇 — HM Revenue & Customs (@HMRCgovuk) April 20, 2025 Who is eligible for HMRC tax-free childcare payments? Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only) are certified as blind or severely sight-impaired What can you use tax-free childcare payments for? HMRC says you can use it to pay for approved childcare, for example: childminders, nurseries and nannies after school clubs and play schemes Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Are all parents eligible for HMRC tax-free childcare? No. This depends on: whether you're working (employed, self-employed, or a director) your income (and your partner's income, if you have one) your child's age and circumstances your immigration status You can usually get tax-free childcare if you (and your partner, if you have one) are: in work on sick leave or annual leave on shared parental, maternity, paternity or adoption leave and you're going back to work within 31 days of the date you first applied You may still be eligible if your partner is working and you get any of the following: Incapacity Benefit Severe Disablement Allowance Carer's Allowance or (in Scotland only) Carer Support Payment contribution-based Employment and Support Allowance You can apply if you're starting or re-starting work within the next 31 days. Over the next three months you and your partner (if you have one) must each expect to earn at least: £2,539 if you're aged 21 or over £2,080 if you're aged 18 to 20 £1,570 if you're under 18 or an apprentice This is the National Minimum Wage or Living Wage for 16 hours a week on average. You can use an average of how much you expect to earn over the current tax year if: you work throughout the year but do not get paid regularly you're self-employed and do not expect to earn enough in the next 3 months How about if you're self-employed or have a second job? If you're self-employed and started your business less than 12 months ago, you can earn less and still be eligible for Tax-Free Childcare. If you have more than one job, you can use your total earnings to work out if you meet the threshold. This includes: earnings from any employment earnings from any self-employment If you're both employed and self-employed, you can use just your self-employment income if this would make you eligible. For example, if you expect your average self-employed earnings over the tax year to be more than you'll get over the next 3 months as an employee. Certain types of income will not count towards the minimum amount you must earn to be eligible. These include: dividends interest income from investing in property pension payments If you or your partner have an expected 'adjusted net income' over £100,000 in the current tax year, you will not be eligible. If you get Universal Credit, a childcare bursary or grant, or childcare vouchers You cannot get tax-free childcare at the same time as claiming Universal Credit or childcare vouchers. Which scheme you're better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you. Childcare vouchers You must tell your employer within 90 days of applying for Tax-Free Childcare to stop your childcare vouchers or directly contracted childcare. They'll then stop the vouchers or directly contracted childcare. You may have to give HMRC evidence of leaving the childcare voucher scheme. Tax-free childcare and Universal Credit Wait until you get a decision on your Tax-Free Childcare application before cancelling your Universal Credit claim. Tax-free childcare and bursaries If you or your partner get a childcare bursary or grant or expect to do so within the next 3 months, you cannot get Tax-Free Childcare. Recommended reading: How to apply You can apply online for Tax-Free Childcare. If you apply for Tax-Free Childcare and someone else already gets free childcare for that child, their 15 or 30 hours will stop at the end of the next term. You may be eligible for 15 or 30 hours free childcare instead. If you have a partner You must include your partner in your application if you are: married or in a civil partnership and live together not married or in a civil partnership, but living together as though you are You and your partner cannot both have accounts for the same child. If you are separated You and your ex-partner need to decide who should apply if you are jointly responsible for your child. If you cannot decide, both of you must apply separately and HMRC will decide who gets a childcare account.
Glasgow Times
25-04-2025
- Business
- Glasgow Times
HMRC urging parents to claim £2,000 tax-free childcare
Tax-free childcare sees parents given up to £2,000 a year - split up into £500 each quarter - for each of their children to help with the costs of childcare. This goes up to £1,000 every three months if a child is disabled (or up to £4,000 a year in total). To get tax-free childcare, parents just need to set up an online childcare account for each child. For every £8 they pay into this account, the government will pay in £2 to use to pay a nursery or childminder. Are you missing out on egg-cellent childcare savings? 🥚 Chick out our Tax-Free Childcare scheme and sign up to unlock savings of up to £2,000 a year per child on approved childcare costs. 💸🐣 Find out more 👇 — HM Revenue & Customs (@HMRCgovuk) April 20, 2025 Who is eligible for HMRC tax-free childcare payments? Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only) are certified as blind or severely sight-impaired What can you use tax-free childcare payments for? HMRC says you can use it to pay for approved childcare, for example: childminders, nurseries and nannies after school clubs and play schemes Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Are all parents eligible for HMRC tax-free childcare? No. This depends on: whether you're working (employed, self-employed, or a director) your income (and your partner's income, if you have one) your child's age and circumstances your immigration status You can usually get tax-free childcare if you (and your partner, if you have one) are: in work on sick leave or annual leave on shared parental, maternity, paternity or adoption leave and you're going back to work within 31 days of the date you first applied You may still be eligible if your partner is working and you get any of the following: Incapacity Benefit Severe Disablement Allowance Carer's Allowance or (in Scotland only) Carer Support Payment contribution-based Employment and Support Allowance You can apply if you're starting or re-starting work within the next 31 days. Over the next three months you and your partner (if you have one) must each expect to earn at least: £2,539 if you're aged 21 or over £2,080 if you're aged 18 to 20 £1,570 if you're under 18 or an apprentice This is the National Minimum Wage or Living Wage for 16 hours a week on average. You can use an average of how much you expect to earn over the current tax year if: you work throughout the year but do not get paid regularly you're self-employed and do not expect to earn enough in the next 3 months How about if you're self-employed or have a second job? If you're self-employed and started your business less than 12 months ago, you can earn less and still be eligible for Tax-Free Childcare. If you have more than one job, you can use your total earnings to work out if you meet the threshold. This includes: earnings from any employment earnings from any self-employment If you're both employed and self-employed, you can use just your self-employment income if this would make you eligible. For example, if you expect your average self-employed earnings over the tax year to be more than you'll get over the next 3 months as an employee. Certain types of income will not count towards the minimum amount you must earn to be eligible. These include: dividends interest income from investing in property pension payments If you or your partner have an expected 'adjusted net income' over £100,000 in the current tax year, you will not be eligible. If you get Universal Credit, a childcare bursary or grant, or childcare vouchers You cannot get tax-free childcare at the same time as claiming Universal Credit or childcare vouchers. Which scheme you're better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you. Childcare vouchers You must tell your employer within 90 days of applying for Tax-Free Childcare to stop your childcare vouchers or directly contracted childcare. They'll then stop the vouchers or directly contracted childcare. You may have to give HMRC evidence of leaving the childcare voucher scheme. Tax-free childcare and Universal Credit Wait until you get a decision on your Tax-Free Childcare application before cancelling your Universal Credit claim. Tax-free childcare and bursaries If you or your partner get a childcare bursary or grant or expect to do so within the next 3 months, you cannot get Tax-Free Childcare. Recommended reading: How to apply You can apply online for Tax-Free Childcare. If you apply for Tax-Free Childcare and someone else already gets free childcare for that child, their 15 or 30 hours will stop at the end of the next term. You may be eligible for 15 or 30 hours free childcare instead. If you have a partner You must include your partner in your application if you are: married or in a civil partnership and live together not married or in a civil partnership, but living together as though you are You and your partner cannot both have accounts for the same child. If you are separated You and your ex-partner need to decide who should apply if you are jointly responsible for your child. If you cannot decide, both of you must apply separately and HMRC will decide who gets a childcare account.
South Wales Argus
25-04-2025
- Business
- South Wales Argus
HMRC urging parents to claim £2,000 tax-free childcare
Tax-free childcare sees parents given up to £2,000 a year - split up into £500 each quarter - for each of their children to help with the costs of childcare. This goes up to £1,000 every three months if a child is disabled (or up to £4,000 a year in total). To get tax-free childcare, parents just need to set up an online childcare account for each child. For every £8 they pay into this account, the government will pay in £2 to use to pay a nursery or childminder. Are you missing out on egg-cellent childcare savings? 🥚 Chick out our Tax-Free Childcare scheme and sign up to unlock savings of up to £2,000 a year per child on approved childcare costs. 💸🐣 Find out more 👇 — HM Revenue & Customs (@HMRCgovuk) April 20, 2025 Who is eligible for HMRC tax-free childcare payments? Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only) are certified as blind or severely sight-impaired What can you use tax-free childcare payments for? HMRC says you can use it to pay for approved childcare, for example: childminders, nurseries and nannies after school clubs and play schemes Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Are all parents eligible for HMRC tax-free childcare? No. This depends on: whether you're working (employed, self-employed, or a director) your income (and your partner's income, if you have one) your child's age and circumstances your immigration status You can usually get tax-free childcare if you (and your partner, if you have one) are: in work on sick leave or annual leave on shared parental, maternity, paternity or adoption leave and you're going back to work within 31 days of the date you first applied You may still be eligible if your partner is working and you get any of the following: Incapacity Benefit Severe Disablement Allowance Carer's Allowance or (in Scotland only) Carer Support Payment contribution-based Employment and Support Allowance You can apply if you're starting or re-starting work within the next 31 days. Over the next three months you and your partner (if you have one) must each expect to earn at least: £2,539 if you're aged 21 or over £2,080 if you're aged 18 to 20 £1,570 if you're under 18 or an apprentice This is the National Minimum Wage or Living Wage for 16 hours a week on average. You can use an average of how much you expect to earn over the current tax year if: you work throughout the year but do not get paid regularly you're self-employed and do not expect to earn enough in the next 3 months How about if you're self-employed or have a second job? If you're self-employed and started your business less than 12 months ago, you can earn less and still be eligible for Tax-Free Childcare. If you have more than one job, you can use your total earnings to work out if you meet the threshold. This includes: earnings from any employment earnings from any self-employment If you're both employed and self-employed, you can use just your self-employment income if this would make you eligible. For example, if you expect your average self-employed earnings over the tax year to be more than you'll get over the next 3 months as an employee. Certain types of income will not count towards the minimum amount you must earn to be eligible. These include: dividends interest income from investing in property pension payments If you or your partner have an expected 'adjusted net income' over £100,000 in the current tax year, you will not be eligible. If you get Universal Credit, a childcare bursary or grant, or childcare vouchers You cannot get tax-free childcare at the same time as claiming Universal Credit or childcare vouchers. Which scheme you're better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you. Childcare vouchers You must tell your employer within 90 days of applying for Tax-Free Childcare to stop your childcare vouchers or directly contracted childcare. They'll then stop the vouchers or directly contracted childcare. You may have to give HMRC evidence of leaving the childcare voucher scheme. Tax-free childcare and Universal Credit Wait until you get a decision on your Tax-Free Childcare application before cancelling your Universal Credit claim. Tax-free childcare and bursaries If you or your partner get a childcare bursary or grant or expect to do so within the next 3 months, you cannot get Tax-Free Childcare. Recommended reading: How to apply You can apply online for Tax-Free Childcare. If you apply for Tax-Free Childcare and someone else already gets free childcare for that child, their 15 or 30 hours will stop at the end of the next term. You may be eligible for 15 or 30 hours free childcare instead. If you have a partner You must include your partner in your application if you are: married or in a civil partnership and live together not married or in a civil partnership, but living together as though you are You and your partner cannot both have accounts for the same child. If you are separated You and your ex-partner need to decide who should apply if you are jointly responsible for your child. If you cannot decide, both of you must apply separately and HMRC will decide who gets a childcare account.
