A “forgotten” task could see UK households handed EXTRA tax relief from HMRC. The warning comes as we head through January and towards the self-assessment deadline which takes place in the wake of Christmas on January 31, 2025.
Claire Trott, divisional director of retirement and holistic planning at St. James’s Place, said: “With less than three weeks to go until the Self-Assessment tax return deadline, millions of taxpayers will be scrambling to complete their returns before the end of the month.
“Completing a tax return tends to be a dreaded task, leading many to put it off until the last minute, and in doing so risk leaving out vital information that could result in paying more tax than necessary.“There are a number of details – such as gift aid payments, and necessary work expenses – that can be easy to forget about when filing a return but can amount to significant tax relief.
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“It’s important that taxpayers take time to include all relevant information to ensure they receive the full tax relief they’re entitled to.” Ms Trott explained: “If you drive a car or van for work, you can use simplified expenses to claim 45p off your tax bill for every mile travelled up to 10,000 miles. After that, the amount you can claim is reduced to 25p.
“You need to keep a record of your mileage over the course of the year to claim tax relief on these travel expenses. You can’t claim for travel to and from your work, unless it’s a temporary place of work.” As well as driving to work, there are also benefits to be found if you’re a uniformed worker.
Ms Trott said: “These include work-related uniforms and protective clothing needed for your work, such as overalls or safety boots, that are not provided by your employer. To qualify, they must be necessary, work-specific clothing items.”
Ms Trott said: “A lot more is paid under Gift Aid than people realise – including subscriptions to organisations like Scouts, Guides, the National Trust, Wildlife Trust, and English Heritage, as well as entry fees for museums and zoos. Donations made through platforms like Facebook Giving also qualify.
“Similarly, if you donate goods to charity shops and sign up to Gift Aid, the charity will send you an annual statement detailing your contributions, allowing you to reclaim the associated Gift Aid in your tax return.” Ms Trott noted: “It’s well worth keeping a record throughout the year of any payments that are eligible for Gift Aid, as it can soon add up.”