MoneySavingExpert founder Martin Lewis has alerted the nation to exercise ten checks on their taxes from HMRC and benefits from the DWP since the new tax year commenced on April 6.
The most recent MSE newsletter featured an elaborate outline from Martin and his team stating ten categories of people who need to ensure they claim their rightful dues and prevent overpayment.
In the bulletin, the team interpreted: “Forget 1 January, the New Year that matters is 6 April… the start of the New Tax Year, which has a material impact on the money in your pocket. It’s when new tax codes start, ISA allowances reset, and this year there are also national insurance cuts and a Child Benefit shake-up.”
Included in the ten alterations, those with employment will be subject to less National Insurance deductions. One can compute their exact reduction using the MSE Income Tax and National Insurance Calculator.
Moreover, all citizens will receive a new tax code at the beginning of the year.
The MSE Free Tax Code Calculator can validate if your 2024/25 tax code is correct, reports Wales Online.
The team reported: “Your tax code is a series of letters and numbers (for example, 1257L) which tells your employer or pension provider what tax to deduct. However, millions of codes are wrong each year, so it’s crucial to check yours – it’s your responsibility, not your employer’s or HMRC’s.”
Self-employed individuals are urged to review the MSE self-employed NI changes for comprehensive information on their potential earnings and savings.
Parents are being urgently advised to check if they are among the hundreds of thousands of families benefitting from the increased cut-off point for Child Benefit. The first changes since 2013 mean you can now receive full Child Benefits even if your income is £60,000, and some benefits even if you earn up to £80,000.
Changes to ISA rules have also been implemented for those wishing to save up to £20,000 this year, as well as regulations on cash savings, stocks and shares.
MSE has reminded first-time buyers aged between 18 and 39 that they can receive a free £1,000 by depositing money into a LISA savings account. The Government will boost whatever you save by 25%, up to £1,000.
The account can be secured with as little as £1.
Married individuals or those in civil partnerships could be eligible for up to £252 this tax year due to the Marriage tax allowance. Everyone is being encouraged to check whether they are entitled to claim anything from the DWP using the MSE 10-minute benefit checker.
In line with the recent 6.7 percent rise in benefits such as Universal Credit, pensioners may be able to utilise the checker to determine their qualification for both tested and non-tested benefits.
This extends to Attendance Allowance too, states the team, claiming that: “Around one million pensioners are missing out, often due to misconceptions around what it is and who can get it. So don’t just assume that you – or someone you know – won’t qualify. Take the time to check. See Attendance Allowance.”
They add that pensioners might also enhance their income by up to £5,500 by examining their National Insurance record for gaps and filling them at no charge.
