Time is Running Out
The tax year is winding down, and households in the UK have only a few days left to take advantage of tax breaks that could save them thousands of pounds before the new tax year begins on April 6.
Why It's Crucial This Year
This year is especially important as many low-earners may face extra tax burdens due to frozen income tax thresholds, pulling more people into higher tax brackets despite the recent National Insurance rate cuts.
Maximize Your Savings
Here are some tax perks to consider before the tax year ends:
Tax-Free Childcare
Families can claim up to £2,000 annually tax-free for childcare costs, in addition to 30 hours of free childcare for eligible parents. Visit gov.uk/tax-free-childcare to start your claim.
Savings Allowance
Low earners earning between £12,570 and £17,570 could earn up to £5,000 in interest on savings tax-free, potentially saving them £1,000 that would have gone to the taxman. Higher earners can still earn £1,000 in interest tax-free.
Marriage Allowance
Couples on a low income could save £252 annually with the marriage allowance, allowing one partner to share 10% of their tax-free personal allowance with the other. Claims can be backdated for up to four years.
Trading Allowance
Savvy sellers could earn up to £1,000 annually tax-free with the trading allowance, saving basic-rate taxpayers up to £200. This is ideal for those doing side jobs like babysitting or selling items.
Rent Out Your Property
Renting out your home or driveway can earn you up to £1,000 tax-free. Whether it's through Airbnb or letting out your driveway, you could save £200 a year in taxes. Make sure to get permission from your landlord or check with your home insurer first.
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