This week in money matters, Felix from Philip J Milton & Co. talks about tax exemptions and allowances. Check out his column on our website for a full list of all his financial hints and tips and please make sure you tune in with your questions the next time Felix is in the studio.
Do you make full use of your annual tax exemptions?
There are many tax efficient allowances granted by the government although many go unused every year. Whilst there are some exceptions, usually if you don’t use it, you lose it! Here are two of the most common allowances that usually go unclaimed:
Marriage Allowance – Married couples born after 5 April 1935 where one spouse is a non-tax payer and the other is a basic rate tax payer can transfer up to 10% of the non-tax paying spouses personal allowance, saving the tax paying spouse £237 per year in tax. This can be back dated to 2015 too!
Uniform Allowance – If you have to wear a set uniform to work, did you know that you can claim tax relief every year towards the upkeep and replacement of specialist clothing required for work? Whilst the full list of qualifying occupations and amounts available to claim are on the HMRC website, many can claim the flat rate of £60 (saving £12 in tax for basic rate tax payers and £24 for higher rate) and this can be back dated to the past 4 years if needed.