As the self-assessment deadline looms, if you haven’t yet done your tax return, or are looking to file 2024/25 early in April, don’t forget the potential tax reliefs available!
🎁 Gift Aid:
If you are a higher or additional rate taxpayer, you can potentially claim additional tax relief on amounts that you donate to charity. If you agreed to Gift Aid when donating, you are able to claim the difference between the highest rate of tax you pay and 20% basic rate tax. For example, a higher rate taxpayer paying tax at 40% who donates £100 to charity can claim £25 tax relief.
Even if you don’t complete a self-assessment form, you can call HMRC on 0300 200 3300 and they can adjust your tax code.
💼 Pensions:
You can get tax relief on private pension contributions worth up to 100% of your annual earnings. You’ll either get the tax relief automatically, or you’ll have to claim it yourself – it depends on the type of pension scheme you’re in, and the rate of income tax you pay.
If you are a higher or additional rate taxpayer, then you can claim additional tax relief for pension payments by submitting a self-assessment tax return. For 2024/25, the contributions need to be paid by 5th April 2025.
🏠 Working From Home:
In the new business environment created by COVID, working from home expenses should not be forgotten as a possible tax relief. The rules as to who can claim tax relief keep changing but it is one worth checking out each tax year.
The current rules state that you can claim relief if:
- Your job requires you to live far away from your office
- Your employer does not have an office
You can also potentially get tax relief for job expenses such as professional fees and subscriptions, business mileage and work clothing, amongst other things. Some may seem small and not worth claiming but in the current economy – every little helps!