Income Tax Relief

Posted 26/07/2019

There are tax reliefs available to UK taxpayers if they meet certain criteria; a tax relief can reduce the amount of self-assessment tax an individual pays at the end of January and July, it could mean that HMRC are due to repay the individual a sum based on the relief, or that the tax is repaid to the individual in other ways such as their tax code being updated so that less tax is deducted from wages.

If an individual pays 20% income tax from their employment income, and their employer pays a percentage of their wages to a pension provider before tax deductions are calculated and paid to HMRC then pension relief is available to that employee. Payslips are a good way to work out at what point the pension deduction is made during the payroll process and to evaluate the eligibility for pension payments relief.When an individual makes a charity donation they may be asked if they want to make the payment under gift aid. Gift aid can add income tax relief if that person is taxed on their income at source or if they fill out a self-assessment tax return and pay tax on their earnings that way. If no tax payments were made during a tax year the individual will have to pay the gift aid relief amount across to HMRC. There is a section on self-assessment tax returns for gift aid donation information to be passed on to HMRC.

10% of maintenance payments made to ex-spouses or civil partners can be claimed up to the amount of £326 in relief. The maintenance payments must be made under a court order to provide aid to the ex-partner who has not remarried or has a new civil partnership, or for any children under the age of 21 years. HMRC must be contacted to apply for this relief.

An employed person can claim tax relief on expenses they have paid for which were wholly for the purpose for their employment. If their employer does not repay their expenses then the employee can contact HMRC. Rather than a repayment, HMRC are likely to change the employment tax code for the current year to adjust for this relief. Expenses can only be claimed for relief within the last 4 years.If a UK resident spent the total of more than 365 days serving on a ship or a floating or fixed production platform on the seas they can fill out a HS205 working sheet and keep a record of travel tickets and vouchers, hotel bills, passports and visas, seafarer discharge book and the freeboard log of the ships the person served on. These documents must be kept safe for HMRC’s request when the application for the relief is put through either by direct contact with HMRC or by filling out a self-assessment tax return. HMRC may also contact the employers for these roles for information on the vessel and crew.

Tags: Income tax relief, tax relief, personal tax


Need help?

Get in touch and see how we can help you