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How to Maximise Your Tax Refund as a Manchester Resident: A Guide from Payless Accountants

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How to Maximise Your Tax Refund as a Manchester Resident: A Guide from Payless Accountants

How to Maximise Your Tax Refund as a Manchester Resident: A Guide from Payless Accountants

Tax season can be a stressful time for many Manchester residents. Whether you’re employed, self-employed, or juggling multiple income streams, there are numerous ways to ensure you’re not leaving money on the table when filing your tax return. At Payless Accountants, we’re dedicated to helping you keep more of what you earn. Here’s our guide on how to maximise your tax refund as a Manchester resident.

1. Claim All Available Tax Reliefs

The UK tax system offers a variety of reliefs and allowances that can significantly reduce your taxable income, but many people fail to claim them. Some of the key tax reliefs include:

  • Marriage Allowance: If you're married or in a civil partnership, one partner can transfer part of their personal allowance to the other. This can save up to £252 per year.
  • Pension Contributions: Contributions to a pension scheme are tax-deductible. Make sure you’re taking full advantage of this, especially if your employer matches contributions.
  • Charitable Donations: Donations made to registered charities under Gift Aid can also help reduce your tax bill. The charity can claim 25p on every £1 you donate, while higher-rate taxpayers can claim additional tax relief.

2. Utilise Work-Related Expenses

Many employees are unaware that work-related expenses can be claimed, especially if you’re required to use your own money for things like uniforms, tools, or professional subscriptions. Make sure you keep receipts and records of any costs you incur, as these can help reduce your tax liability.

  • Uniform and Tools: If your job requires specific uniforms or tools that you pay for, these costs can be claimed as tax deductions.
  • Professional Fees: Memberships to professional bodies, unions, or other work-related organisations may also be tax-deductible.

3. Make the Most of Property Tax Reliefs

Manchester has a thriving rental market, and if you're a landlord, you can claim several expenses against your rental income. Some of the most common deductions include:

  • Mortgage Interest Relief: While mortgage interest tax relief has been phased out and replaced by a 20% tax credit, it’s still worth considering.
  • Repairs and Maintenance: You can claim for repairs and maintenance costs that keep your rental property in a good state. This includes fixing broken appliances or general upkeep of the property.
  • Wear and Tear Allowance: If you rent out a furnished property, you may be able to claim a wear and tear allowance for the depreciation of your furniture and fittings.

4. Check Your Tax Code

Your tax code determines how much tax is deducted from your salary. If it’s wrong, you could end up paying too much tax. Many Manchester residents are on incorrect tax codes without realising it. You should always check your tax code when you receive your payslip and ensure it reflects your personal situation. If you think you’ve been overpaying, you can claim a refund for up to four years of overpaid tax.

5. Self-Employed? Keep Accurate Records

If you’re self-employed, keeping detailed records is crucial. HMRC allows you to claim a wide range of expenses, from office supplies to travel costs. The key to maximising your refund is being organised and ensuring you’ve logged every allowable expense. You can claim for:

  • Home Office Expenses: If you work from home, a portion of your household bills such as heating, internet, and electricity can be claimed as business expenses.
  • Mileage and Travel: Keep a log of your business travel. You can claim mileage for using your car for work-related trips.
  • Training and Development: If you take courses directly related to your business, the costs can be deductible.

6. Review Your Savings and Investments

Manchester residents with savings and investments should ensure they’re making use of tax-efficient products like ISAs (Individual Savings Accounts). ISAs allow you to save or invest up to £20,000 per year tax-free. Additionally, if you receive dividends, the first £1,000 is tax-free, and using these allowances can significantly reduce your tax burden.

7. Stay on Top of Deadlines

Missing a tax deadline can lead to fines and interest on unpaid tax, which could eat into your refund. Make sure you’re aware of key deadlines, such as:

  • 31 January: Deadline for submitting your online self-assessment tax return and paying any tax due for the previous tax year.
  • 5 October: Deadline to register for self-assessment if you're self-employed or have other untaxed income.

8. Consult with a Tax Professional

Tax laws are complex and constantly changing. Even if you feel confident filing your taxes yourself, consulting with a professional accountant can ensure you’re taking advantage of all the tax reliefs and allowances available to you. At Payless Accountants, we specialise in helping Manchester residents and business owners optimise their tax returns, ensuring they get the best possible refund.

Conclusion

Maximising your tax refund as a Manchester resident doesn’t have to be a daunting task. By staying informed, keeping accurate records, and taking advantage of the tax reliefs and allowances available, you can ensure you’re not overpaying the taxman. If you need help navigating the complexities of tax returns, Payless Accountants is here to assist. Contact us today for professional advice tailored to your individual circumstances.