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As part of Talk Money Week, we want to let you and your employees know about services available online and in the HMRC app that can help boost and manage their finances.
For example, where money can be claimed back, it’s free to claim directly through HMRC’s online services and is the only way to guarantee receiving 100% of the repayment.
We’d appreciate your support in letting your employees know that the HMRC app and online services can help them:
- Claim money back on work expenses.
- Claim and manage Child Benefit.
- Claim a tax refund.
- Claim Marriage Allowance.
We’ve also outlined guidance on how to use the HMRC app for the first time.
How to use the HMRC app for the first time
The HMRC app allows users to check and manage their finances at their own convenience. If this is you or your employee’s first time using the app, there are three simple steps:
- Download the free HMRC app.
- Follow the instructions on screen to complete the app settings – users will be asked to sign in.
- Users will need to know their Government Gateway user ID and password to sign into their account on the app for the first time, but after that can just select facial recognition, a short PIN or choose to use their fingerprint to get in quicker. If they don’t already have an ID and password, this can be created on the same sign in page.
1. Support for employees – claim tax relief on employee expenses
Did you know you and your employees may be able to claim tax refunds on work-related expenses? Making a claim online via GOV.UK takes minutes and guarantees that you get 100% of the money back, if eligible.
Use the online claim service to check eligibility and a full list of work expenses, including:
• uniforms and work clothing
• buying work-related equipment
• professional fees, union memberships, and subscriptions
• using their own vehicle for work travel (excluding journey from home to work)
2. Support if you’ve paid too much tax – claim a tax refund
If you or your employees have paid too much tax, claim a refund easily through the HMRC app.
This is the quickest way to claim your tax refund from us. We’ll pay the refund straight into your bank account and means you don’t have to wait for us to send it by post.
To claim your tax refund, select the ‘Pay As You Earn (PAYE)’ section in the HMRC app. If you’re due money back from us, you’ll see a green button on the page to claim your refund and the amount we owe. Select this button to begin your claim.
Find out more about claiming a tax refund via the HMRC app.
3. Support for families – claim and manage Child Benefit
If you are responsible for children, you can claim as much as £1,248 a year in Child Benefit for the first child and could also receive nearly £827 a year for any other children you have.
Parents can now claim and manage their Child Benefit online, and could get their first payment in as little as 3 working days.
You can also use the HMRC app to view recent payments, get proof of entitlement and update your bank details. This will all help to ensure you don’t miss out on any payments.
You and your employees should still apply if they or their partner’s income is over £50,000 a year. You may have heard of the High Income Child Benefit Charge,, but this shouldn’t put you off. By claiming, you and your employees can get National Insurance credits towards a State Pension. You and your employees can also opt out of payments, when you claim or receive them and pay the charge.
4. Support for couples married or in civil partnerships – claim Marriage Allowance
Married couples and those in civil partnerships can share their personal allowances, if one partner has an income under their Personal Allowance threshold – which is usually £12,570 – and the higher earning partner’s income is between £12,571 and £50,270 (£43,662 in Scotland).
This allows couples to transfer £1,260 of the lower earners personal allowance to their husband, wife, or civil partner, and reduces their tax by up to £252 a year.
Couples can apply any time and backdate their claims for any of the previous tax years since 2019, if eligible. It’s free to complete a Marriage Allowance application to receive 100% of the tax relief they’re eligible for.
Thank you for continuing to provide invaluable support to your employees. We hope this information helps you and your employees, and we’ll continue to keep you updated on our digital services.
HMRC Income Tax Team