Filing a self-assessment tax return does not necessarily mean paying extra tax. Often it can mean tax reliefs and refunds.
Tax relief means that you either:
Some of the income tax reliefs available are:
Private pension contributions
You can get tax relief on private pension contributions worth up to 100% of your annual earnings.
You get the tax relief automatically if your:
However, you may have to claim tax relief on pension contributions if:
Donations to charity from individuals are tax free. You can get tax relief if you donate:
If pay Income Tax above the 20% basic rate you can claim back the difference between the tax you’ve paid on the donation and what the charity got back when you fill in your Self-Assessment tax return.
Expenses if you’re self-employed
If you’re self-employed, your business will have various running costs. You can deduct some of these costs to work out your taxable profit as long as they’re allowable expenses.
Costs you can claim as allowable expense might include:
Tax relief for your job expenses if you are employed
If you are employed, you might be able to claim tax relief if:
You cannot claim tax relief if your employer either gives you:
You must have paid tax in the year and you’ll get tax relief based on what you’ve spent and the rate at which you pay tax.
Maintenance Payments Relief reduces your Income Tax if you make maintenance payments to an ex-spouse or civil partner.
To qualify, all of the following must apply:
Maintenance Payments Relief is worth 10% of the maintenance you pay to your ex-spouse or civil partner, up to a maximum of £326 a year (or 10% of £3,260).
Some income tax reliefs are applied automatically but for others, a claim must be submitted to HMRC, usually through the self-assessment tax return.
Contact us for any advice regarding your self-assessment tax returns and claiming income tax relief.
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