Latest news with #SelfAssessment
Wales Online
3 days ago
- Business
- Wales Online
Parents warned child benefit could stop if they don't act ahead of looming deadline
Parents warned child benefit could stop if they don't act ahead of looming deadline HM Revenue and Customs (HMRC) is warning parents that they need to take action to avoid missing out on Child Benefits which could be worth thousands of pounds each year HM Revenue and Customs (HMRC) is currently issuing reminders to parents of teenagers aged 16 to 19 ahead of a key deadline in August. If they fail to update their Child Benefit claim by this date, payments will cease automatically. The cut-off point for updating the online account to maintain the benefit is August 31, 2025. This update is crucial for parents whose teens are pursuing further education or training. For all the latest money-saving tips, sign up to our Money newsletter here . Parents can swiftly and conveniently extend their claim using the HMRC app or by visiting online. The reminder letters also feature a useful QR code that directs parents straight to the digital service on Child Benefit stands at £26.05 weekly for the eldest or an only child, totalling £1,354.60 annually, and £17.25 per week for each additional child, amounting to £897 yearly. Last year saw over 870,000 parents renew their Child Benefit claims for their teenagers, with most confirmations done quickly online or through the HMRC app. Myrtle Lloyd, HMRC's Director General for Customer Services, commented: "Child Benefit is an important boost to families. As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to or the HMRC app to confirm today," reports the Daily Record. Children who are engaged in full-time studies in approved non-advanced education are eligible for continued Child Benefit payments. Child Benefit will continue to be provided for children enrolled in certain unpaid approved training courses. If a child decides not to pursue further education or training, parents can simply notify HMRC online or via the app, and payments will be adjusted accordingly. If either the claimant or their partner earns between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families in this income bracket, the online Child Benefit tax calculator can provide an estimate of the benefit they will receive and the potential charge. As part of the UK Government's Plan for Change, starting this summer, families will have the option to pay the charge directly through their PAYE tax code using a new digital service, eliminating the need to file a Self Assessment tax return. This new service aims to reduce bureaucracy for eligible employed parents liable to the High Income Child Benefit Charge, although those who prefer to pay the charge through their Self Assessment can continue to do so. Families who have previously opted out of Child Benefit payments can choose to opt back in and restart their payments quickly and easily online or via the HMRC app. Article continues below Upon turning 16, teenagers can take control of their Child Trust Fund savings account, which could potentially be worth thousands of pounds. They can withdraw the money once they turn 18. Child Trust Funds were established for every child born between 1 September 2002 and 2 January 2011. Teenagers or their parents and guardians who are aware of their Child Trust Fund provider can get in touch with them directly. If they're unsure about the whereabouts of their account, a free online tool on can help locate their Child Trust Fund provider.
Western Telegraph
20-05-2025
- Business
- Western Telegraph
HMRC home working expenses you can claim back for five years
The money is given to cover the extra household costs if you have to work at home for all or part of the week. According to the HMRC website, this could be because:: your job requires you to live far away from your office your employer does not have an office You cannot claim tax relief if you choose to work from home. This includes if: your employment contract lets you work from home some or all of the time your employer has an office, but you cannot go there sometimes because it's full You can only claim for things to do with your work, such as: business phone calls gas and electricity for your work area You cannot claim for things that you use for both private and business use, such as rent or broadband access. You can claim for this tax year and the 4 previous tax years. You can either claim tax relief of £6 a week, or the exact amount you've spent, and you'll get tax relief based on the rate at which you pay tax. So, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you would get £1.20 per week in tax relief (20% of £6). In a post on his Money Saving Expert website, Martin Lewis says: "If your employer requires you to work from home, you've always been able to claim for increased costs, eg, heat or electricity, for the specific time at home. Yet in October 2020, HM Revenue & Customs (HMRC) launched a 'microservice' which, even if you only needed to work from home for a day, allowed you to get a whole year's tax relief. "That special relief applied for both the 2020/21 AND 2021/22 tax years – meaning many are due two years' worth, which can translate to up to £280 in your pocket. "Since I first got tipped off about the microservice, I've pushed hard to make people aware, both here and on my TV show – and that push worked, with substantially more than four million people claiming. But many more could be missing out. "So, if you had to work from home, even for a day, from 6 April 2020 to 5 April 2022 and haven't claimed, then you can still claim." Recommended reading: How to claim When you claim, you must send evidence that you have to work from home if you're either claiming: £6 a week for the tax year 2022 to 2023 or later the exact amount you've spent If you're claiming the exact amount you've spent, you will also need to send evidence such as a copy of your receipts or bills. If you complete a Self Assessment tax return, you must claim through your tax return instead.
Scottish Sun
19-05-2025
- Business
- Scottish Sun
Millions of workers urged to check key code on special payment slips arriving in DAYS – check if you're overpaying
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MILLIONS of workers have been urged to check a key code on a special payment slip revealing if they're overpaying tax. The warning has been issued to employees who should receive their P60s before the end of the month. 1 The wrong tax code on your P60 means you could be overpaying tax to HMRC P60s are issued to workers at the end of every tax year with the final deadline for bosses to send them May 31. They are sent out either electronically or in paper form. However, one key detail on the P60 could tell you you're paying the wrong amount of tax - your "final tax code". If it turns out you are on the wrong code, it means you could be overpaying tax and are owed money from HMRC. Bear in mind though, you may also be underpaying tax and have to pay HMRC any shortfall. Sarah Coles, personal finance expert at Hargreaves Lansdown, said: "It isn't always easy to get to grips with your P60, but the thing to look for is the final tax code. "If it's wrong, you could end up over-paying or under-paying your tax – either of which is a pain in the neck." Your tax code could be wrong for any number of reasons, including if you have multiple jobs and your employer doesn't know your personal allowance has been used up from earnings elsewhere. You may also be on the wrong code if you've changed jobs and your employer hasn't received the right documentation from a previous employer. Or, someone in the HR department might simply have made a clerical error meaning you're on the wrong code. How to challenge your council tax band How to check your tax code A tax code is normally a five-digit mixture of letters and numbers. The most common tax code for the current tax year is 1257L. This tax code is used for most people with one job and no untaxed income, unpaid tax or taxable benefits (like a company car). You can check your tax code on your online personal tax account, via payslips, or on the HMRC app. You can also, if you've received one, check your code on a "Tax Code Notice" letter from HMRC. You'll need your Government Gateway ID and password to log in to your online personal tax account. If you don't have this you can use your National Insurance number or postcode and two of the following: a valid UK passport a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) a payslip from the last three months or a P60 from your employer for the last tax year details of a tax credit claim if you have made one details from a Self Assessment tax return (in the last two years) if you made one information held on your credit record if you have one (such as loans, credit cards or mortgages) You can also use free tax code calculator which can give you a steer as to whether you're on the right one. How to report a wrong tax code If, after checking, you think you're on the wrong tax code, you can contact HMRC to tell them via phone on 0300 200 3300. This is usually the quickest way to get a response. Or, you can send a letter to the following address: Pay as You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom. If you are on the wrong tax code and have been paying too much, HMRC will change it so you pay the correct amount moving forwards. They should also reimburse any tax you've already overpaid. If you've been underpaying tax, you will usually have to pay the money back over 12 months. But, only if you are earning enough over the personal tax allowance (£12,570) to cover the underpayment and owe less than £3,000. HMRC might get in touch with you to tell you you're owed a tax rebate too - they'll do this via a P800 letter or a simple assessment letter in the post. But again, a P800 might tell you if you've not paid enough tax and have to pay it back. A P800 letter will tell you if you can claim online through the Government's website, in which case you'll need your Government Gateway ID and password. If you claim the money online it will be sent to your bank account within five days. You can also claim your refund through the HMRC app. If your P800 letter states you will be paid your tax rebate via cheque in the post, you should receive it within 14 days of the date on your letter. If you're owed tax from more than one year, you'll get a single cheque for the entire amount. There are time limits in place to reclaim any overpaid tax, which is currently four years from the end of the tax year in which you are trying to claim. So, if you're in any doubt you've overpaid tax, you should contact HMRC as early as possible. What your tax code means Your tax code is a combination of letters and numbers. The number will normally dictate the level of your tax-free allowance. So if your allowance is £11,000 the first four digits of your code will be 1100. The letters have different meanings - here is a guide: L - You're entitled to the standard tax-free personal allowance - You're entitled to the standard tax-free personal allowance M - Marriage Allowance: you've received a transfer of 10 per cent of your partner's personal allowance (£1,260) - Marriage Allowance: you've received a transfer of 10 per cent of your partner's personal allowance (£1,260) N - Marriage Allowance: you've transferred 10 per cent of your personal allowance to your partner - Marriage Allowance: you've transferred 10 per cent of your personal allowance to your partner S - Your income or pension is taxed using the rates in Scotland - Your income or pension is taxed using the rates in Scotland T - Your tax code includes other calculations to work out your personal allowance, for example, it's been reduced because your estimated annual income is more than £100,000 - Your tax code includes other calculations to work out your personal allowance, for example, it's been reduced because your estimated annual income is more than £100,000 0T - Your personal allowance (which is currently £12,570) has been used up, or you've started a new job and your employer doesn't have the details they need to give you a tax code - Your personal allowance (which is currently £12,570) has been used up, or you've started a new job and your employer doesn't have the details they need to give you a tax code BR - All your income from this job or pension is taxed at the basic rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the basic rate (usually used if you've got more than one job or pension) D0 - All your income from this job or pension is taxed at the higher rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the higher rate (usually used if you've got more than one job or pension) D1 - All your income from this job or pension is taxed at the additional rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the additional rate (usually used if you've got more than one job or pension) NT - You're not paying any tax on this income - You're not paying any tax on this income Tax codes starting with K mean you have income that isn't being taxed another way and it's worth more than your tax-free allowance If your tax code begins with 'W1', 'M1' or 'X' you've been placed on an emergency tax code and may need to update your details. If you change jobs, take on an additional role or have another change in circumstances it is also worth checking your details and making sure you are on the correct code. It could be that HMRC has not received information about your change of circumstances and therefore will not update anything. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Leader Live
18-05-2025
- Business
- Leader Live
HMRC home working expenses you can claim back for five years
The money is given to cover the extra household costs if you have to work at home for all or part of the week. According to the HMRC website, this could be because:: You cannot claim tax relief if you choose to work from home. This includes if: You can only claim for things to do with your work, such as: You cannot claim for things that you use for both private and business use, such as rent or broadband access. You can claim for this tax year and the 4 previous tax years. You can either claim tax relief of £6 a week, or the exact amount you've spent, and you'll get tax relief based on the rate at which you pay tax. So, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you would get £1.20 per week in tax relief (20% of £6). In a post on his Money Saving Expert website, Martin Lewis says: "If your employer requires you to work from home, you've always been able to claim for increased costs, eg, heat or electricity, for the specific time at home. Yet in October 2020, HM Revenue & Customs (HMRC) launched a 'microservice' which, even if you only needed to work from home for a day, allowed you to get a whole year's tax relief. "That special relief applied for both the 2020/21 AND 2021/22 tax years – meaning many are due two years' worth, which can translate to up to £280 in your pocket. "Since I first got tipped off about the microservice, I've pushed hard to make people aware, both here and on my TV show – and that push worked, with substantially more than four million people claiming. But many more could be missing out. "So, if you had to work from home, even for a day, from 6 April 2020 to 5 April 2022 and haven't claimed, then you can still claim." Recommended reading: When you claim, you must send evidence that you have to work from home if you're either claiming: If you're claiming the exact amount you've spent, you will also need to send evidence such as a copy of your receipts or bills. If you complete a Self Assessment tax return, you must claim through your tax return instead.
North Wales Chronicle
18-05-2025
- Business
- North Wales Chronicle
HMRC home working expenses you can claim back for five years
The money is given to cover the extra household costs if you have to work at home for all or part of the week. According to the HMRC website, this could be because:: You cannot claim tax relief if you choose to work from home. This includes if: You can only claim for things to do with your work, such as: You cannot claim for things that you use for both private and business use, such as rent or broadband access. You can claim for this tax year and the 4 previous tax years. You can either claim tax relief of £6 a week, or the exact amount you've spent, and you'll get tax relief based on the rate at which you pay tax. So, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you would get £1.20 per week in tax relief (20% of £6). In a post on his Money Saving Expert website, Martin Lewis says: "If your employer requires you to work from home, you've always been able to claim for increased costs, eg, heat or electricity, for the specific time at home. Yet in October 2020, HM Revenue & Customs (HMRC) launched a 'microservice' which, even if you only needed to work from home for a day, allowed you to get a whole year's tax relief. "That special relief applied for both the 2020/21 AND 2021/22 tax years – meaning many are due two years' worth, which can translate to up to £280 in your pocket. "Since I first got tipped off about the microservice, I've pushed hard to make people aware, both here and on my TV show – and that push worked, with substantially more than four million people claiming. But many more could be missing out. "So, if you had to work from home, even for a day, from 6 April 2020 to 5 April 2022 and haven't claimed, then you can still claim." Recommended reading: When you claim, you must send evidence that you have to work from home if you're either claiming: If you're claiming the exact amount you've spent, you will also need to send evidence such as a copy of your receipts or bills. If you complete a Self Assessment tax return, you must claim through your tax return instead.
