Claim a share of billions
AS THE cost-of-living crisis intensifies Britons are overlooking billions of pounds worth of tax breaks and state benefits that could go a long way towards easing financial problems.
These will not just help those on low incomes, many are available to middle-income households as well.
Pensioners, married couples and parents with young children head the list of those who are failing to claim what they are due, said Laura Suter, head of personal finance at AJ Bell: “The tax system has become more and more complex over the years and many are missing out on thousands of pounds of extra income or support.”
Do any of these apply to you? Marriage Allowance Married couples can claim this where one spouse earns less than the £12,570 personal allowance and the other is a basic-rate taxpayer. “This typically applies when a household has one main breadwinner and could be worth £252 a year,” Suter said.
Claims can be backdated up to four years, giving a potential £1,242 windfall. “It has to be claimed, you don’t just get it,” Suter said. Go to Gov.uk/marriage-allowance Pension Credit An estimated 850,000 of the poorest pensioners fail to claim Pension Credit, which tops up your weekly income to £182.60 if you are single or £278.70 if you have a partner. In total they miss out on £1.7billion a year by failing to claim. You may be eligible if your sole source of income is the basic state pension, which pays a maximum of just £141.85 a week to those who retired before April 6, 2016.
Pension Credit would top this up by £40.75 a week, or £2,119 a year. Suter said: “However, two people on the full basic state pension are over the income threshold, as they would get £283.70 in total, which is above the pension credit threshold.”
Some will be entitled to additional Pension Credit, say, if they also receive Carer’s Allowance or disability support, Suter said. Find out more by calling the Pension Credit helpline on 0800 99 1234.
Cost of living payments Pension Credit also unlocks other support, including housing benefit, mortgage interest support, council tax reduction, free over-75s TV licence, help with NHS dental treatment, glasses and transport costs for hospital appointments and heating support. “If you claim, you will also get the government’s new £650 cost of living support payments,” Suter added.
To get the first payment of £326, you must have been receiving Universal Credit between April 26 and May 25, 2022. If you were not, there is still time to claim Pension Credit and qualify for the second payment of £324.
Pension tax relief Anyone under the age of 75 can contribute up to £3,600 each year to a pension and claim 20 per cent tax relief, even if they have retired or earn no income.
Tax-free childcare Last year, more than half a million families claimed tax-free childcare of up to £2,000 a child.
The money goes towards childminders, nurseries, nannies, afterschool clubs and play schemes, yet 800,000 who are eligible miss out.