consumer champion Martin Lewis shared three things to check before April 5 or risk losing thousands of pounds.
What are three things to do before April?
Martin Lewis explained that you may be eligible to claim a refund for the following three reasons:
- You are on the wrong tax code
- You have not applied for the wedding tax deduction
- You had a PPI payment
In these examples, you can only claim your tax refund for the last four tax years, which means you only have a few weeks left before the 2017 tax refund opportunity expires. 2018.
After April 5, 2022, you can only go back to the 2018/2019 tax year, as the UK tax year begins on April 6 each year.
On the live broadcast, Martin Lewis said: “A month from now, April 6, you will only be able to claim the 2018/19 tax year, which means if you owe money from from that time, so if you don’t do it now, you’re going to lose it.
Wrong tax codes
Millions of workers are placed in the wrong tax code each year and could be owed thousands of pounds each year.
Tax codes are used by your employer or pension organization to determine the amount of tax withheld from your salary or pension.
The amount you are entitled to depends on how much you earn and how long you have been in the wrong tax code.
The most common code for people who have a job or a pension is 1275L, although not everyone is on this point.
To check your tax code, you can consult your last payslip or consult your P45. The GOV.UK website offers a webpage to check tax codes, but you will need to register for a government gateway ID.
MoneySavingExpert offers a free tax code calculator that can be used to get an estimate of the accuracy of yours.
To check your tax code, enter your pre-tax earnings and your current code. The calculator will then say if you are probably on the right code.
A tax calculator won’t be able to tell you for sure if you’re on the right code, but it should give you a rough idea.
If you think your tax code is wrong you can contact HMRC and ask them to investigate by calling 0300 200 3300.
But if you find you have paid less tax you will owe money to HMRC as the tax will need to be refunded.
Marriage tax allowance
The Marriage Tax Allowance allows eligible couples to transfer £1,260 of their personal allowance to their spouse or civil partner, reducing their annual tax bill.
The personal allowance is the amount you earn free of tax each tax year, and if you can claim for the previous four tax years you could potentially recoup £1,220.
To qualify, you must be married or in a PACS.
Half must be a non-taxpayer while the other half must pay the basic tax rate of 20%.
This means that one of you pays no tax or earns less than £12,570, while the other would earn between £12,571 and £50,270.
Another eligibility is that both halves must be born on or after April 6, 1935.
MoneySavingExpert estimates that around 2.4 million couples do not benefit from the marriage tax allowance.
You can apply online via the HMRC website or by calling 0300 200 3300
PPI was an insurance policy attached to credit agreements such as loans, mortgages or credit cards.
But it was often mis-sold to customers, for example, to people who could never claim, or when they were wrongly told they needed it.
The deadline for claiming a refund for mis-sold PPIs through the Ombudsman passed in August 2019, but it might be worth checking to see if you have a tax refund.
Many banks and lenders have automatically deducted tax from PPI payments, although not everyone has to pay it.
When the payments were made, the banks refunded the PPI premium plus 8% statutory interest.
The legal interest portion is taxed as a savings, and most companies deduct it automatically.
But since April 2016, taxpayers have recovered part of this tax through the personal savings allowance.
The Personal Savings Allowance allows basic rate taxpayers to earn £1,000 a year of tax-free interest on their savings, or £500 for higher rate taxpayers.
To recover any tax due on PPI payments, you will need to complete Form R40 on the Gov.UK website.