Latest news with #MartinSLewis
Glasgow Times
3 hours ago
- Automotive
- Glasgow Times
Pensioners' HMRC tax codes to change for Winter Fuel Payment
Following the announcement that pensioners who receive under £35,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above £35,000 through their tax codes, or by asking them to complete a self-assessment tax return. HMRC said: "Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare." What is a tax code? It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax. But, many people are paying too much tax - as we go into the HMRC tax year 2025 - 2026 it's worth making sure you aren't one of them - and if so, look at how to get a rebate. Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use. How to check your tax code You can find your tax code: by checking your tax code for the current year online - you'll need to sign in to or create an online account on on the HMRC app on your payslip on a 'Tax Code Notice' letter from HMRC, if you get one This week's 'Joker' #martinlewis break bumper: If you have a 1250L tax code - what does the number bit stand for? a) Just an ID code b) You can earn 10x that number tax free each year c) It's your additional allowance on top of the standard allowance — Martin Lewis (@MartinSLewis) February 17, 2020 If you check your tax code online or in the HMRC app, you can also: find your tax code for previous tax years sign up for paperless notifications - this means HMRC will email you when your tax code changes Check what your tax code means You can use the HMRC tax code checker to find out: what the numbers and letters in your tax code mean how much tax you will pay what you may need to do next What the numbers mean in your HMRC tax code The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car). HMRC tax code letters and what they mean The full list can be found on the website, but these are the most common, and what they mean: L - For an employee entitled to the standard tax-free Personal Allowance S - For an employee whose main home is in Scotland BR/ SBR - For a second job or pension M - For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance) N - For an employee who has transferred some of their Personal Allowance to their spouse or civil partner (through Marriage Allowance) T - When HMRC needs to review some items with the employee Recommended reading: How to claim back tax with an HMRC tax rebate If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
South Wales Argus
9 hours ago
- Automotive
- South Wales Argus
Pensioners' HMRC tax codes to change for Winter Fuel Payment
Following the announcement that pensioners who receive under £35,000 a year will now receive winter fuel allowance, HMRC has confirmed it will take back the money from those with incomes above £35,000 through their tax codes, or by asking them to complete a self-assessment tax return. HMRC said: "Winter Fuel Payments will be paid automatically without a claim, and any charges will be collected via PAYE, or via self-assessment for those with other income to declare." What is a tax code? It may look like a secret code, but the formula is pretty simple (and explained below). The most common HMRC tax code is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax. But, many people are paying too much tax - as we go into the HMRC tax year 2025 - 2026 it's worth making sure you aren't one of them - and if so, look at how to get a rebate. Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use. How to check your tax code You can find your tax code: by checking your tax code for the current year online - you'll need to sign in to or create an online account on on the HMRC app on your payslip on a 'Tax Code Notice' letter from HMRC, if you get one This week's 'Joker' #martinlewis break bumper: If you have a 1250L tax code - what does the number bit stand for? a) Just an ID code b) You can earn 10x that number tax free each year c) It's your additional allowance on top of the standard allowance — Martin Lewis (@MartinSLewis) February 17, 2020 If you check your tax code online or in the HMRC app, you can also: find your tax code for previous tax years sign up for paperless notifications - this means HMRC will email you when your tax code changes Check what your tax code means You can use the HMRC tax code checker to find out: what the numbers and letters in your tax code mean how much tax you will pay what you may need to do next What the numbers mean in your HMRC tax code The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). They also consider the value of any perks you get from your employer (such as a company car). HMRC tax code letters and what they mean The full list can be found on the website, but these are the most common, and what they mean: L - For an employee entitled to the standard tax-free Personal Allowance S - For an employee whose main home is in Scotland BR/ SBR - For a second job or pension M - For an employee whose spouse or civil partner has transferred some of their Personal Allowance (through Marriage Allowance) N - For an employee who has transferred some of their Personal Allowance to their spouse or civil partner (through Marriage Allowance) T - When HMRC needs to review some items with the employee Recommended reading: How to claim back tax with an HMRC tax rebate If you think you are on the wrong tax code, you can contact HMRC on 0300 200 330 or speak to an advisor online via their live chat service. HMRC will contact your employer to correct your tax code and you will get any money you overpaid in tax in your next payslip. You can also claim back up to four additional years if you have been overpaying for some time.
Glasgow Times
2 days ago
- Business
- Glasgow Times
Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs. Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period). "Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is." Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October. The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025 What is the energy price cap? The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. Recommended reading: Warm Home Discount There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26. Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). "That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
South Wales Argus
2 days ago
- Business
- South Wales Argus
Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs. Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period). "Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is." Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October. The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025 What is the energy price cap? The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. Recommended reading: Warm Home Discount There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26. Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). "That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
Western Telegraph
11-06-2025
- Business
- Western Telegraph
HMRC tax updates: Martin Lewis on the most confused rules
On X, he posted about the "common "taxable" and "taxed." Eg all earnt income from everyone of any age (even a one year old baby appearing in a nappy ad) is taxable. "Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which is the annual personal allowance (the amount most can earn tax free each year) Ps and yes that personal allowance has been frozen which is a stealth tax rise as with inflation and income growth more people earn above it." Another common confusion is the difference between "taxable" and "taxed." Eg all earnt income from everyone of any age (even a 1 year old baby appearing in a nappy ad) is taxable. Yet it's only taxed if earnings are over £12,570/yr (and only earnings above that are taxed) -which… — Martin Lewis (@MartinSLewis) June 10, 2025 According to HMRC, you do not pay tax on: He also posted: "I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance, personal savings allowance, ISA allowance or in Premium Bonds its tax-free)." HMRC says: "Most people can earn some interest from their savings without paying tax." Your allowances for earning interest before you have to pay tax on it include your: Personal Allowance starting rate for savings Personal Savings Allowance You get these allowances each tax year (6 April to 5 April). How much you get depends on your other income. I keep reading on here that savings are taxed. Just to be technical, that's incorrect. Its savings interest that is taxable, not savings. Ie you're only taxed on what you earn from having savings. (Though if its within your personal allowance, starting savings allowance,… — Martin Lewis (@MartinSLewis) June 10, 2025 You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. Recommended reading: The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be. You're not eligible for the starting rate for savings if your other income is £17,570 or more. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
