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We've collected the answers to the most common questions we get here. If your question isn't answered, or if you just prefer to talk to a real person right away, you can give us ring, use the Live Chat here on our site, join us on Facebook or send us a message for help.
Walk over to your thermostat and turn it down by one degree. If you can, avoid touching it again. Manage that, and you’ve just saved yourself nearly one hundred and twenty seven pounds for the year!
How many times have you put an item on your shopping list, and then realised you already have it? That’s partly why the average UK household wastes around seven hundred pounds’ worth of food per year. So go save some food from landfill, right now! Find the seven items closest to their sell-by and work them into this week’s meal plan. Repeat that process once a week and you’ll save yourself nearly five hundred pounds a year.
What’s your quietest day of the week? Circle that date and make it your “no spend day.” Pick free activities you can walk to. Make meals from leftovers. Crack out the board games. There’s loads you can do that costs nothing.
Could you live without premium, all-access gym membership? Could you replace spin class with a jog? Could you take a Youtube fitness class? There’s loads you can do to keep fit in the great outdoors and your home. The “gym of life” is all around you, and membership is free forever.
If you can live without a forty pound per month gym membership, that’s four hundred and eighty pounds back in your pocket for the year.
You don’t need two streaming services. You definitely don’t need three. So keep your favourite and get rid of the others. Remember, iPlayer, All4, and Freeview are all included in your TV licence fee. Youtube’s also free. And if you’re really old school, there’s always live TV…
You’ve definitely got one ill-considered purchase sitting in the house that still holds some resale value. Like the guitar that gets picked up once every six months. Or the iRobot Roomba that hasn’t been charged since last year. Get it on eBay, get some cash in your pocket, and reclaim some living space.
Are you in the right council tax band? Martin Lewis estimates more than four hundred thousand households are in the wrong one. The bands were calculated over 30 years ago. And in some cases, the calculations may have been wrong in the first place. So check your council tax band on a recent bill. It should have a letter next to it, like “Band B.” Letters close to the start of the alphabet are the cheaper bands. So if your home is fairly modest, but your council tax band is F or H, something could be wrong. Get on your local council’s website and find out how to challenge your band. Or get them on the phone - cause that call could be worth thousands! There’s another tax code you’ll need to check that often gets messed up - and it’s on your paycheck!
In debt with your council tax? Read our guide for support.
Let’s have a look at your last paycheck. What’s the tax code? Is it something like…
1257 W1
1257 M1 OR
1257 X?
If that’s a “yes”, it looks like you’re on an emergency tax code. Usually, this is a short-term measure - for example, on your first paycheck from a new job. They’re used when your employer, their payroll accountant, or HMRC don’t have your up-to-date information. A really common example is when your P45 hasn’t been received or processed yet.
But if you’ve been on an emergency code for a while, something may be wrong. It might be that your P45 was never received or processed. If it’s something you forgot to do, get that P45 to your employer, pronto!
If they already have it, it’s time to start busting chops. Get on to your employer first. They may allow you to speak directly to their accountants, or they may not. If you have no luck there, contact HMRC directly.
Once HMRC has the correct information, any tax you’ve overpaid will get paid back to you through your salary.
Where’s your water meter? Do you even have one? Are you sure? Water bills get charged in one of two ways; either through a water meter reading; or by averaging the amount of water used in your area. If you don’t have a water meter - and not everyone does - you could be paying for some of your neighbours’ water. The utility company will take an average for the area. But they make some assumptions in those averages - specifically, they may assume a larger house has lots of people living in it. Say you live alone in a three-bed house - in that case, you may be paying for 3 people’s worth of water. So check your bill. If it’s got a meter number on it somewhere, you’re golden. If not, call your utility provider - get a meter installed for free and get yourself a fairer deal.
Do you spend your own money on work expenses? For example, do you travel between work sites in your own car, or on public transport? Have you spent your own money on uniforms or courses? Many people don’t realise these expenses are tax exempt. It’s also a common misconception that you can only claim these expenses back if you’re self-employed. So if your employer hasn’t reimbursed you for these costs, you could be due a tax refund. It takes just a couple of minutes to find out what you could be owed.
Death, taxes, rising energy bills. You can definitely count on the first two. And the third is quickly becoming just as certain. Switching your energy provider is often touted as a smart way to lock in favourable terms. So has combining your gas and electricity into a single bill from the same provider. But that’s not always the best course of action. There are the usual hurdles to consider - like exit fees. But market conditions could also mean it’s better to stay where you are. Changing energy caps, in particular, have muddied the water. And many customers have ended up with providers they didn’t choose because theirs went out of business. So by all means, fire up the comparison site and see if there’s a better deal on the table. If there is, make sure it’s a good enough deal to offset any exit costs. And do your research. If there are press stories about your potential new supplier struggling financially, consider staying put.
You’re probably familiar with the unofficial “lazy man tax”. That’s when you get slapped with less favourable terms than new customers for products like insurance. In many cases, it’s been cheaper to shop around for new customer deals than stick with your existing providers - and banks have been no exception. In fact, it’s possible to get slapped with a double whammy on your bank accounts. For example, you may have signed up with a bank who offered a high interest rate on savings accounts. But after a year, those terms end, and you roll onto a much lower rate. It might even be zero percent! And by leaving your money where it is, you may also miss out on incentives for switching banks - like a cash bonus, or attractive introductory rate. However, like with energy bills, times have changed - and switching providers may no longer be the best option. In many cases, it might make more sense to stay where you are. Check your bank’s deals first, then see if any others can beat it.
Are you paying interest on your credit card bill each month? If the answer is yes, it might be time to look at a balance transfer. If you’re paying a high rate - which can be upwards of twenty percent APR - it could be time to transfer that balance. That’s where you move your existing credit card debt to a new card with a lower promotional interest rate. There’s usually a fee or percentage involved in balance transfers. But it can be worth paying if there’s a long-term saving on interest.
If you don’t carry a balance on your credit card, you could still consider switching. Many card providers offer 0% interest for two years or more. So, in theory, you could put your household expenses on your new 0% interest card. Put the money you’d normally spend on expenses into a high-interest account - and DO NOT TOUCH IT. Then pay your card off right before the end of your promotional term. You’ll be left with a tidy amount of interest in your savings account! Be warned though - this takes skill, attention, and discipline. You don’t want to accidentally spend the money in your savings account - or miss the end of your promotional period. So approach this idea with caution. Finally, could you get a better deal from a rewards card? This is where you get rewards for spending on your card - like cash-back on purchases or air miles. Make sure the benefits outweigh any fees based on your spending habits.
Getting Ocado delivered to your door? Get on Google Maps. There’s probably an ALDI, LIDL, or other discount supermarket nearby. Make your next shop a cheap one!
It’s that dreaded “lazy man tax” again! Digital subscriptions quite often sneak “auto-renew” features into their product. This can happen even when you think you’re paying a one-time fee - it can actually be a covert annual subscription that auto-renews. Adobe Photoshop, take a bow! So log in to any digital product or service you’ve signed up for recently and check you don’t have “auto-renew” turned on. It’s especially important if there are sneaky annual increases built into your terms and conditions. So go hunt down that auto-renew button and turn it off! Just make a note of the date the service will end. You can always switch it back on if you’re enjoying the subscription come renewal time.
It’s a classic for a reason. A simple penny jar is great for giving you a real-time, real-world sense of what you’re saving. Plonk your jar on a shelf or window sill, somewhere you’ll see it every day, and physically put your saved pennies into it. You won’t get too deep into the year before you have to get yourself a bigger jar, which is a great feeling in itself if you’d always felt like you couldn’t save money at all.
One thing to watch out for is the “cash-out tax” you might find yourself getting kicked with when you take your jar(s) to the bank at the end of the challenge. You could choose to carefully bag up all the loose coins yourself to deposit them, which is a bit of a chore but does keep your savings intact. On the other hand, dumping them into a bank’s coin-sorting machine is a lot simpler – but will typically cost you about 10% off the top for the convenience. With the kind of cash we’re talking about, that’s a big chunk of change to lose.
Obviously, the cash method won’t work for everyone. We don’t all deal in coins as much these days, particularly since COVID-19 reared its ugly head. Instead, you can use your online banking app or website to transfer the savings into a separate account. Depending on your bank’s rules and systems, you might have to do this monthly rather than daily. That’s slightly against the spirit of the challenge, of course, but stick to the plan and don’t skip your transfer dates either way.
Another way to go is to split up your yearly savings total into 12 payments and get them transferred automatically to your savings account. Rounding up, this would mean stashing away £55.67 per month throughout the year.
Saving money isn’t always easy. When we talk about things like following the 50/30/20 rule, what we’re really trying to do is build up a healthier relationship with our cash. It’s all about developing simple habits that lead to serious benefits over time – and that’s usually worth a lot more than socking away a lump of cash every now and then.
For a quick guide to the 50/30/20 rule, take a look at our article, “What You Should Be Saving According to Your Salary”. For right now, though, let’s talk about how even the smallest baby-steps toward better saving habits matter. The 1p money saving challenge is a great example of this, and it’s something you can start as soon as the year ticks over.
Here’s the whole idea in a nutshell. Every day of the year, starting from the 1st of January, you’re going to save just one penny more than you did the day before. So, on the 1st of January you set aside a single penny. It doesn’t matter if it came out of your pocket or you picked it up off the street. Just put it away somewhere and mark your calendar to show that you did it.
When the 2nd of January rolls around, you save 2p – that’s on top of the 1p you saved yesterday, so you’ve got 3p saved already. On the 3rd, you save 3p (for a total of 6p stashed away). After that you just keep on going to the end of the year. See? We told you it wasn’t going to be complicated.
So right now, you’re probably thinking that these amounts really don’t seem like they’d be worth saving. After all, even on the final day of the year you’ll only be putting away a grand total of £3.65, right? The funny thing is, even though the challenge is incredibly easy to complete, that doesn’t mean it’s not worth trying. In fact, following the challenge for an entire year actually nets you a grand total of £667.95 (or £671.61 if it’s a leap year)!
The beauty of the 1p money saving challenge is that it really doesn’t matter when you start. The savings will be mounting up from the first day, and you can keep going well past the end of the year to keep your momentum.
If you’ve missed the suggested kick-off date of the 1st of January and want to catch up rather than working from scratch, no problem! Just work out what you would have saved if you had started on the 1st and sock that amount away immediately. So, if your actual start date was, say, the 24th of January, you’d just add up all the previous totals to get £3 and start by saving that. Then, the next day, you’d just add 25p to that total and work from there.
You can read up on this in our article “The 1p Money Saving Challenge”, but it’s basically just a very low-hassle trick to help you save an extra £667.95 per year. You can take the challenge with nothing more than a jar or piggy bank, or do it digitally if that’s easier. Either way, it’s as simple as saving a penny one day, then 2p the next and so on. It doesn’t sound like it’d amount to much, but over a year it’s an impressive way to save.
Making money decisions in a hurry is often a bad move, but we’re getting pressure piled on us all the time to do just that. “Unmissable” deals with limited-time offers and “FOMO” sales techniques are designed to short-circuit your brain into emptying your pockets. Before you know it, there’s a courier at your door and you’ve already forgotten what you ordered.
Here’s an easy trick that’ll cost you nothing and could save you plenty: just give it a day and decide tomorrow.
The 24-hour rule is one of Lloyd’s Bank’s top savings tips for the same reason it’s one of ours: it works. Set yourself a 24 hour no-spend rule on non-essential purchases – particularly online ones. Instead of hitting the “add to cart” button, just bookmark the page and click yourself away somewhere else. The next day, come back to your bookmark and ask yourself if it still looks like it’s worth the money. If it does, at least you put some thought into it. If it doesn’t, you’ve saved some cash.
Spending money is the easiest thing in the world and it seems even easier when it isn’t yours to begin with. As good as credit cards seem in the short term, failing to pay back your credit can gradually put you and your money in a very bad place. It’s vital that any purchases made on these cards is paid back pronto to prevent their high interest rates racking up debt. The money you’re using just to pay back the interest is cash that could otherwise be in a savings account. This is why crunching your credit is widely seen as the number one priority.
If you find yourself with large amounts of credit card debt, fear not, there are ways to unshackle yourself from this money merry-go-round. You can do this with the help of a balance-transfer credit card. It may seem strange to use another form of credit to pay off another but hear us out. By using one of these you can transfer your existing debt into new credit that reduces the impact of the initial interest.
Each balance-transfer card has different conditions but the majority offer a set promotional period to pay back the money without interest. When it comes to finding a balance-transfer card you must make sure you give yourself enough time to pay it back. Otherwise, you could find yourself in the same position as before. If you make this first step into cleaning out your credit, you’ll be in a much better mindset to kickstart your saving journey.
This tip is more about setting good saving discipline than actually finding money. All you need to do is set up a standing order so that money goes into your savings account each month. Be careful not to stretch yourself too thin as this trick works best when you don’t even notice it leaving your account. If you find yourself constantly pulling money back out of your savings, try dropping the amount until it’s at a consistent level.
Once you’ve hit this point you can continue living your life as usual but, this time, with a steady stream of savings totting up in the background. If you end up catching the saving bug and love this method you can take it one step further. The rise of online banks such as Monzo have grown in popularity over the past decade because of their dedicated saving tools. If you don’t mind switching, some let you segment your income into different pots for different purposes. Whether you’re saving for a holiday or a new car, this is handy for those who might lack discipline with their spending.
Spotify, Apple Music, Netflix, Amazon Prime and even Disney+. These streaming platforms have become a media mainstay in recent years with 60% of Brits now signed up to at least one service. In isolation, low costs of £9.99 for an almost endless library of content seems like a good deal when compared to satellite TV packages. However, if you’re subscribed to multiple platforms that serve the same purpose, your monthly costs could start to climb. Knocking just one additional platform from your bills can see you save upwards of £120 a year in some cases.
For those who literally cannot live without all of their subscriptions, it may be worth looking into sharing an account with a friend or family member. With the exception of Disney+, most of the major platforms offer some sort of discount for a shared subscription. This allows you to keep your own profiles and preferences whilst saving yourself a few quid each month.
With phone prices skyrocketing in excess of £1,000 it’s no wonder that more people are holding onto their phones for longer. Many top of the range handset contracts can easily cost you £80+ a month. The problem is that these contracts are split into two segments - device and usage. Network providers often use a standard usage tariff which means that you can get the same amount of texts, minutes and data for much cheaper if you were to switch to a SIM-only.
In general, it’s usually cheaper to buy a product outright. Unless you plan on shooting slow-motion motion video in ultra-HD, the chances are you can get by with an older model at a fraction of the price. If you want to save even more, many manufacturers and sites sell refurbished versions of even the latest models. If you’re a bit sceptical about refurbs, most actually come with a warranty in the unlikely case that something should go wrong.
Switching providers can be one of the quickest and most effective ways to save money each month. Whether you’re shopping around for car insurance, broadband or energy, you can input your details in a matter of minutes and see exactly what you could be paying. More times than not there’s a substantial difference between the most expensive and cheapest deals on the internet. Making this part of your routine every time your contract is up for renewal will ensure that you’re never overpaying for your services.
In the UK alone, Cheaper Waste found that 6.7 million tonnes of food is wasted every year at a cost of £250-£400 per household. Prepping meals on a weekly basis is a win/win if you can get yourself organised. On one hand, by setting one day a week to prepare your weekly meals, you can reduce the likelihood of ordering take-away on the days that you don’t have the energy to cook. Simply put your prepped meal in the oven and it can be ready quicker than the delivery driver can get to your door. Food prep can also reduce your monthly shopping total as it prevents your food from going out of date, making sure you get your money’s worth from every ingredient that otherwise may end up in the bin!
There are loads of tax reliefs and benefits that you may not know about but could be saving you money. For example with the Marriage Allowance, you can claim if you earn more than your husband, wife or civil partner and they do not pay income tax or pay the basic income tax rate. By transferring a maximum of £1,260 of your personal allowance to your partner, you can reduce their tax by up to £252.
If you have children, you can benefit from Tax-Free childcare if your child is under the age of 11. You must earn at least the National Living Wage for 16 hours a week on average to be eligible, this must also apply to your partner if you have one. You can receive up to £2,000 a year for each child or £4,000 if they are disabled.
If you haven’t already seen our 7 Simple Heating Bill Hacks, we break down the easiest ways to reduce your energy bill each month. Some of the easiest methods include turning down your thermostat by 1 degree, prioritising heating in the rooms that you use and making sure you block out any drafts to prevent heat from escaping. With energy bills currently through the roof, just picking one of these tips can help knock a chunk off your heating bill and free up some money to put elsewhere each month.
With all things considered, saving even just a little bit of money can go a long way. Starting off is always the hardest part and breaking the paycheque to paycheque cycle isn’t easy. Even if you just become slightly more aware of your spending, you can start to pick apart your outgoings and prioritise what means the most to you in your life. After all, life is for living and if you can put more money into just that, we see it as a job well done.
If you already own a residential property, you’ll be hit a little harder with your SDLT charge, to the tune of an extra 3% on top. That means second homes, holiday homes and buy-to-let properties will all land you with extra Stamp Duty to pay. If you’re living in Scotland or Wales, that extra charge bumps up to 4% instead.
The timing can be pretty important here. If your main residence is already sold by the time you buy a new one to replace it, you won’t get lumped with the extra SDLT charge. If you still haven’t sold your main home by the time you complete the purchase of your new one, though, you’ll technically own both properties at the same time. That means the extra 3% (or 4% in Scotland or Wales) will apply. However, there’s a wrinkle in the rules that could still save you money. If you manage to sell your old place within 36 months after buying your new one, you can claim a refund of the 3% charge you had to pay. There are a few other situations that can earn you that same refund, but they’re few and far between.
Another key question is whether or not you count as a UK resident for tax purposes. This can sometimes get tricky, but a lot depends on how much time you spend in the UK. If you’re abroad for at least 183 days of the 12 months before you buy a property, you won’t count as a UK resident for SDLT. In that case, you’ll generally be charged a 2% surcharge when you buy a residential property in England of Northern Ireland.
There are more resources out there to help with both money and mental problems than most people realise. They don’t all involve waiting on phone helplines or sitting through benefits assessments, either. In fact, some of the most effective resources could already be right on your doorstep.
The first step you take is always the most important, so reaching out to family or close friends can set you on the right path from the start. From there, once you’ve broken the silence and opened up the conversation, you could start looking a little further – like talking to your GP or a support worker. The most important thing to understand is that you’re not alone in this. For instance, there are peer support networks online where people share their experiences and the solutions they’ve found or tried. If your mental health load is becoming too much to carry, there are experts at the Samaritans (call 116 123) who can offer confidential support with no judgement or strings attached.
Even though the table contains the tax rates for each income, it leaves out two crucial points for those earning over £100k in a year. For every £1 that you earn above this amount, your personal allowance will reduce by £2 until it’s gone. Once you hit the £125,140 mark your allowance will automatically be set to £0 meaning that you’ll have to pay tax on everything you earn.
In real terms, anyone caught between £100k and £120k can actually be paying a whopping 60% in tax. You may earn £100k a year but with a bonus of £1,000 your total income is taken to £101k. That additional £1,000 will not only be taxed at 40% but will also knock £500 off your tax free personal allowance. This removal of £500 from tax will be charged at another 40%, leaving you with a meagre £400 from your £1000 bonus.
As you can see, even if you think you’ve got breathing space before hitting this threshold, it’s best to check if you’re inline for any big bonuses or commission before the end of the tax year. Many people don’t notice until they receive their tax slip and it’s too late to act.
Although there is no way of avoiding this 60% tax for £100k-£120k earners, there are ways to manage your income so that you can still make some changes to become more tax efficient. Pensions, workplace benefits, and charitable donations are all great ways to help you reduce your earnings to below £100k and prevent any reduction in personal allowance.
One route you could take is to use your pension contributions to take you under the £100k barrier. You’d essentially be sending some of the money that would’ve been heavily taxed to your retirement pot. Although you’d be taking home less money each month, you’d still be more wealthy overall because of the break in tax and the hefty pension waiting for you. It’s worth noting that you can only deposit a maximum of £40,000 a year.
Now if a pay rise is on the cards, you may want to check out what benefits your company offers as a trade off. Things like company cars and private healthcare can often make your life more comfortable without having to jump over the £100k barrier. These are usually given through a “salary sacrifice” scheme so it’s definitely worth asking about if you’re in line for an annual review.
The exact Self Assessment forms you need to file will vary with your personal and financial situation. We’ve already covered most of the major ones, but here are a few more examples that might apply to you:
If you’ve got a purchased life annuity, you’ll usually be taxed on it at the normal rate. If your income is below your tax-free Personal Allowance, you’ll be able to claim that tax back. Alternatively, you could ask for your annuity to be paid out without tax taken off.
To claim back the tax you’re owed, you’ll need a form R40 for every year you’ve overpaid. As always, there’s a hard limit of 4-years to get back what you’re owed.
If you want your annuity paid tax-free instead, you’ll send form R89 to your provider, or form R86 for joint annuities. Either way, keep in mind that you’ll have to alert the provider if your income ever goes up. If you start bringing in more than your Personal Allowance, you’ll owe some tax on it.
For pension annuities, you should get a P800 letter from HMRC if you’re owed any tax back. If you don’t get one and think you’re owed money, talk to HMRC.
Most likely, yes. The amounts you receive don’t normally cover everything you’re entitled to.
It is important to know that we deduct HDT or GYH allowances from any claim we make as both are paid non-taxed.
Use our Tax Refund Calculator to find out if you are owed anything from HMRC
If you live in married quarters, on or off base, and spend your leave periods there, it would normally be classed as your main residence. The claim in this case would be for any costs for travel between your married quarters and any temporary postings of up to 24 months.
If you already receive a Home to Duty (HDT) allowance for this already, we will review the amounts received against the allowable limits and claim for any shortfall.
Use our Tax Calculator to see if you are owed a refund from HMRC.
If you live on base part of the time but go home to another address for weekends or longer periods of leave, the leave address would be classed as your main residence.
A tax refund claim in this case would be for travel between your home address and your workplace.
If you already receive a Get You Home Travel (GYH) allowance for this, we will review the amounts received against the allowable limits and claim for any shortfall.
Use our Tax Calculator to find out if you are due a refund.
Yes this is very important as we need to have documentary evidence to support your claim.
Please ensure you keep a copy of each of your Assignment Orders for each base that you have traveled to. You can print these from JPA but please note these are deleted after 60 days.
See our checklist of the documents you will need to make a claim. We can help you get copies of anything you are missing if needed.
It will depend on the type of training.
HMRC has strict rules about what is classed as an allowable expense around training. If it was an essential part of your contractual duties of employment then we might be able to claim for the traveling expense.
You will need to have completed your phase one training to make a claim.
Even if you not due a refund this year remember that you can claim for the past 4 tax years so use our tax calculator to find out if you are owed anything.
To get a tax refund, HMRC says you need to be travelling to temporary workplaces. Reservists and Territorial Army personnel tend to spend most of their service in one place, which wouldn't qualify and is an example of when you wouldn't be able to claim an MOD tax refund.
That said, your circumstances might be different from most. Get in touch if you want us to look into it for you. It costs you nothing to find out where you stand.
Use our tax calculator to see if you are due a refund
Find out if you need to complete a Self Assessment Tax Return or if you can claim Flat Rate Expenses.
Yes. You are legally entitled to reclaim 24p per mile, which is the difference between the HMRC allowed rate of £0.45 per mile* and the MOD £0.21 per mile tax exempt allowance. To claim this, you must be on temporary duty. This is defined by the relevant HMRC legislation, not by MOD policy.
Ask RIFT about your specific circumstances if you are still unclear.
*HMRC EIM32080 Travel expenses: travel for necessary attendance: temporary workplace: limited duration, the 24 month rule.
Despite what some people are saying, MOD personnel really can get UK tax refunds. RIFT Refunds always knew this was true and we fought hard to get the proof. You can read the MOD letter to us and feel assured that this is something that can be legitimately claimed for.
Tax refunds for travel can be claimed, as confirmed in DIN ‘2015DIN01-005’ which has been issued to all service personnel to officially confirm this.
There has been a lot of confusion around tax refunds that RIFT has worked hard to clear up with both the MOD and HMRC.
Different interpretations of what is meant by ‘a temporary posting’ have caused this confusion. Some believed that individuals who claimed a tax refund on HDT were doing so in breach of HMRC rules. RIFT can categorically confirm that none of these potential situations can arise and this is confirmed by the MOD.
Some also thought that making any claim for a tax refund may mean the individual may have to repay rebated money in the future. Others also thought claiming a refund would jeopardise the whole tax exemption of the MOD HDT allowance, disadvantaging many service personnel.
Others were worried about changes to tax codes. Your tax code should not change due to a refund claim but any problems with your tax code are covered in our aftercare service which means we will get any errors fixed for you at no extra charge. Read more about tax codes and how to check if yours is correct.
DIN ‘2015DIN01-005’ has been issued to all service personnel to officially confirm that tax refunds for travel are claimable.
It also states that you can use an agent to make a claim for you. RIFT will act as your agent, providing an end to end service if you don’t have the time or are not comfortable dealing with the technical legislation set out by HMRC.
This supports the previous formal confirmation we received from the Ministry of Defence.
Just like anyone else, you're entitled to a UK tax refund for travel expenses to and from temporary workplaces. If you're making your own way from a UK residence, you could have a pretty big refund on your hands. Watch out, though - if your family has moved abroad with you, then your main residence might be outside the UK. In that case, you can't claim for your travel costs.
Find out everything you need to know about paying UK tax if you work overseas or get in touch.
Yes, if this is classed as your main residence.
The legislation for tax refund claims is based on costs for travel expenses on to temporary postings of under 24 months, even outside the UK, using either your own vehicle or public transport counts.
If you're in the Armed Forces and making your own way to more than one base, you can claim any overpaid tax on the cost of that travel for the last 4 years, and the RIFT average 4 year rebate is £2,500.
HMRC takes a big enough bite out of your pay already. Don't let them hold onto cash that's supposed to be in your pocket. Use our tax calculator to find out if you are owed anything back.
No, laundry costs are included in your annual personal allowance (i.e. the amount you can earn tax-free each year). This will be recorded in your tax code.
You may be able to claim if you have the receipt and it is in the last four tax years as it is a work related expense.
Use our tax calculator to find out if you are due a refund.
Yes, the cost of flying varies considerably so we need evidence of your actual expenses for HMRC. We can only claim for the actual flights you made, not the cost of any flights between two destinations.
Have a look at our checklist of the documents or paperwork we'll need for your claim.
You can download all your wage slips from the JPAC website.
Under HMRC legislation a posting that is more than 24 months is deemed permanent and therefore the temporary workplace rules don’t apply. However, we would review every case in isolation as we would need to understand your expectation at the outset of your posting.
As you can claim for the previous 4 years even if you have been at your current base for over 24 months you may be able to claim for previous postings.
Use our Tax Calculator to work out if you are due a refund.
We need the following information to assess your MOD tax refund and then hopefully process your claim:
See our full document checklist and what to do if you are missing anything.
Other information – We’ll ask you a few simple questions about your financial circumstances e.g. if you have any other sources of income such as rental income, whether you have a student loan or a private pension that may affect your claim, your tax code or mean that you need to submit a self assessment tax return.
The MOD accommodation rules may also have an impact so we will need to understand your living arrangements. This helps us calculate the value of tax you’ve overpaid.
Use our Tax Calculator to find out if you are due money back.
Armed Forces uniform tax rebates are handled differently from most other professions. Generally speaking, your uniform maintenance costs are handled through your tax code. Basically, your tax-free Personal Allowance gets ratcheted up a few notches to make up for what you're shelling out.
Review our checklist below to see if you need to do a tax return. If you answer yes to any of the following, you’re on the hook for self-assessment…
If you’re not sure – just ask.
You can find out more about Self-Assessment, how to do it and the forms you need to fill in here.
One more thing! If you’re a RIFT Refunds customer, we do your tax return – FOR FREE. It’s all part of the service.
Your return will be different to anyone else’s, because of your earnings and the kind of work you do. But, in general terms, the kind of information you’ll need to supply should include:
If you’re a landlord, you may also need things like tenancy agreements, for example.
You can find out more about Self-Assessment, how to do it and the forms you need to fill in here.
You can do your self-assessment online, which makes the process a little easier, but if you’re not an accountant, some of the terminology can still be hard to understand. You’ll also still need to have all of your paperwork, invoices, receipts and expenses in order. Knowing what you can and can’t claim for is key to making sure you pay the right amount of tax.
Most people fill out the SA100 form and there is guidance if you’re doing it online. A lot of guidance – read the notes carefully! And be warned – it can get even complicated if you have to fill out supplementary sections.
Some people qualify to complete the SA200 form. This is only four pages and is for those with a turnover of less than £85,000. This can include employed, self-employed and retired people. HMRC will decide if it’s suitable for you.
There’s nothing worse than submitting a last-minute tax return and having to sit up into the wee small hours to do it. That’s head banging stuff.
Especially if you’re not sure what you’re doing, when it’s not your area of expertise it can be hugely overwhelming. Paying an expert means you can concentrate on the day job and just bring home the bacon!
Of course, if you’re prepared to take the time, do a good bit of reading and know your paperwork’s in order, you can save an Accountant’s fee.
We do tax returns and again, if we’re doing your refund, we’ll do your tax return as part of the deal. That’s pretty big stuff!
Getting a specialist to do your tax return and refund means a load off. Any high street accountant will be expert at filling in tax returns. They may also offer you a guarantee that they’ll look after and take care of any queries, though this may be an extra cost.
As part of our Tax Refunds Service, we can complete your return AND we offer a full year’s aftercare.
If you’re the kind of person who isn’t great with paperwork, it’s likely you need help. A good personal tax consultant (like the one RIFT customers get) will go through everything you need to provide and advise if you need to complete supplementary sections.
This is especially important if you don’t know what counts as work expenses, as these are the things that will help to get your tax bill down - and perhaps even qualify you for a refund.
Processing a tax return is almost instantaneous – for the taxman! HMRC calculates how much you owe almost straight away. Claiming a tax refund can take a little longer.
In any case, if you’re claiming more than £2,500 in expenses, you need to register for self-assessment which then has to be done every year. It just isn’t possible to do it all on one form.
Our specialist software is linked to HMRC systems and we also have a direct line that our agents use to get a faster response.
HMRC have a tool here that you can use to find out when you can expect a reply from them.
There are a few! Our specialist subject is tax refunds, but that also means we know a thing or two about tax returns. The two go hand in hand!
If we’re doing your tax refund, you’ll also get:
The Pay As You Earn (PAYE) system generally isn't bad at working out the tax most people owe. However, it's only as good as the information it's working with. When it's contending with expenses like travel to temporary workplaces, the system tends to trip itself up because HMRC won't automatically have the necessary information to get its calculations right.
Of course, work expenses have a nasty habit of changing year on year. Unless you prove otherwise, HMRC often has no choice but to change your tax code to account for what it thinks you owe. This can lead to severe headaches when your costs change, since your tax code won't be keeping up with your expenses. That's why you’re better off making full yearly refund claims and watching your tax code carefully.
It’s easy to get set in your ways, particularly with things you rarely even think about. You already know what temperature you like your home to be, so you reach for the thermostat, set it and forget it. The thing is, if you’ve got all your radiators on full, you’re blowing through a lot of energy just to heat the rooms you’re hardly using. Consider turning a few of your radiator valves down – or even just shutting doors so you’re not spending needless money heating empty rooms.
While you’re at it, think about nudging your main thermostat down by just 1 degree. The chances are you won’t even notice the difference – at least until your energy bills arrive. Running your home 1 degree cooler could be worth an average of £55 a year off your energy budget.
Here's a few more bad habits to try break:
Bank credit is similar to consumer credit in a lot of ways. The bank offers the chance to pay back what you owe in stages, with terms depending on your financial position. The bank will look at things like your statements and the value of any assets you own, which are often used as ‘security’ in the agreement.
As for what you actually get with a bank credit deal, we’re talking about anything from a mortgage or housing loan to a cash credit facility. Letters of credit (where a bank backs your payment to a seller), bank guarantees and discounted bills of exchange (where a bank basically buys a debt at a discounted rate) are also broadly lumped under the bank credit category.
There’s a fair bit of confusion about whether or not rechargeable batteries actually save you money. For one thing, you’re going to use a fair amount of electricity charging them up back, rather than swapping them out for a fresh set of regular batteries. What it comes down to is whether the price of those new conventional cells ends up higher than powering up a set of rechargeables. The bottom line there is, if you pick the right battery brand, you’re better off recharging.
Rechargeable batteries last a lot longer than conventional ones. Good quality rechargeables can handle 200 or more charges, so you’d potentially have to replace normal ones hundreds of times to match up. Yes, you’re using electricity to top up your flat batteries, costing you some money. However, you stand to save a lot more by not having to buy a new single-use battery every time one goes flat.
Of course, money isn’t the only thing that disposable batteries waste. A battery is a difficult thing to get rid of safely. Doing it right means taking them to a household waste recycling centre, or a shop that’s set up to collect them. Switching to high-quality rechargeable batteries isn’t just a money saver; it’s also a good way to bring down your carbon footprint and waste output.
Yes, no matter why you're leaving your job, you should get a P45.
Let’s start with your simple, beginner-level options for making money from home. They won’t get you rich quick, but they also don’t need any special skills.
Pick up people’s dry cleaning, mow their lawn. These kinds of odd jobs have been around for ages. But it’s now a digital marketplace - sites like TaskRabbit connect people who need odd jobs doing, with the people who are happy to do them. Some of this will require leaving the house - like picking up dry cleaning. But equally, it could be helping people with digital tasks - like helping write emails or making them a spreadsheet. So go check it out!
We’re not talking about life-changing money here but some companies will reward you for filling out surveys. It is that simple - give your opinion, get paid! You won’t even need a laptop for this one - you can easily do it on your phone.
Some people want their pets looked after in their own homes. But others will be happy to drop them at your place. There are a few well-known companies who’ll let you sign up online and then connect you digitally with pet owners - so get Googling!
If you’re just looking for some short-term funds, auction sites are a great place to start. Getting some unused items up for auction will also help you declutter your life, as well as giving you a short-term cash injection.
A lot of people like the idea of being their own boss, but don’t want to risk being self-employed as their only source of income. That’s how a lot of small businesses get their start, as second jobs for people who wok on the books elsewhere. This can be a great idea if you’re cut out for it, but you do need to keep your tax situation under control.
When you’re self-employed, even as a second job, you’ll need to get cosy with the taxman. That means registering yourself with HMRC as self-employed, getting set up for the Self Assessment system and filing yearly tax returns to report all your earnings, expenses and other key details.
Self Assessment comes with some specific dates and deadlines to hit, the most important of which is the 31st of January. Every year, this will be your deadline for filing your tax return paperwork, along with paying up what you owe.
The other thing to know before setting yourself up as self-employed is that your National Insurance Contributions (NICs) wont’ magically take care of themselves any more either. You’ll have to pay what you owe for these when you settle up with the taxman each year.
The basic paperwork for your self-employed job will be a little different from your on-the-books work, too. You won’t have a regular payslip sent to you, for one thing. That means you’ll have to keep a tight set of records covering all the money flowing into and out of your business. Self Assessment tax returns are a huge topic in themselves, so make sure you have a good understanding of what’s involved before diving in.
So, are you an on-the-books employee with a self-employed side gig or a small business owner who moonlights PAYE for someone else? Generally, it’s probably best to class your “main job” as the one that brings in the most money. Either way, you’ll be paying a year in arrears for your self-employed work. That means, for example, that the profits your self-employed business made in 2021/22 will factor into the eventual tax bill you’ll pay up by the 31st of January 2023. This is something that trips up a lot of people when they’re new to Self Assessment. Instead of the tax trickling out of your pay each month through the PAYE system, your self-employment tax for the entire year will all fall due in a big lump. Tax years run from the 6th of April to the 5th of the following April, though, so you’ll know 9 months ahead what you’ll have to cough up.
One of the most important things a good adviser will do is make sure you’re not paying more tax than you need to. The right kind of specialist will protect your money by helping you make the most of all the tax relief and deductions you’re entitled to. At the same time, they’ll protect you by making sure you’re keeping within the various tax rules.
Another thing a specialist adviser can offer is the reassurance of getting your tax paperwork handled accurately. Getting caught in the spotlight of an HMRC investigation is bad news, and can lead to fines and penalties – or even a criminal record! A good specialist will help you keep your tax documents spotless, even when dealing with the most complicated areas of the rules like reporting multiple sources of income.
Beyond that, a specialist tax consultant will make planning out your finances a lot easier and safer. Tax planning is an ongoing process throughout the year, and some of the biggest decisions need to be made well in advance. A tax consultant who understands your situation will help you scout out the financial road ahead for opportunities and obstacles alike.
Finally, talking to a tax adviser is a great way to save time and boost your peace of mind. Taking care of your taxes can be stressful and time-consuming. Just knowing your money’s in good hands can free you up to focus your attention on the things that really matter to you.
Buy Now, Pay Later is a popular way to spread the cost of an everyday purchase. It’s become a popular way to finance small-ish purchases for a short period of time – over a couple of months, for example.
You can choose to pay with BNPL at the checkout, paying the first instalment and then spreading the others over the next few months, depending on the terms the BNPL company offers.
BNPL is usually operated by a finance company on behalf of a retailer. Popular BNPL brands include Klarna or ClearPay. PayPal also has a BNPL product.
BNPL can be really useful if you’re making an unplanned or emergency purchase that you just don’t have all the funds for. It’s also a good way to spread the cost of a larger planned purchase.
Where you might get into trouble with BNPL is seeing it as a way to buy things on impulse that you don’t need or you can’t afford. Like that pair of smart trainers that have been calling your name but you already have five pairs stashed under the bed…
It pays to take care with BNPL!
Use it right and BNPL won’t cost you any more than the cash price of the item you’re buying.
There are no fees if you pay off the full amount in the time stated, and there’s no interest. But these terms can vary by provider.
So essentially you pay the cash price but typically over a few months.
None of the big BNPL brands charge you any fees for using BNPL in this way.
BNPL allows you to spread the cost of a purchase and is offered by many high street and online retailers.
So it’s a cheap and quick way to get FREE credit.
It’s also easy to set up and use – perhaps too easy! You just have to select this payment method at the checkout.
Some providers will give you up to 3 months to pay off your BNPL credit.
For many people, the downside of BNPL is the temptation to overspend. BNPL is debt and it needs to be repaid.
Check yourself at the checkout – if you’re only buying this item on impulse and because you can spread the payments, think again about getting into this kind of debt.
Also, because each BNPL company has different terms, make sure you know the Ts&Cs that come with your BNPL purchase.
For example, ClearPay lets you pay in 4 instalments but has a £6 minimum late payment fee.
Alternatively, Klarna allows you to choose to pay in 30 days or 3 months and promises no late repayment fees.
Think about it like this: if you have to borrow to make a purchase, think about that purchase carefully. Because however easy it feels, it is still debt. And debt shouldn’t be taken on lightly.
For example, while you can now use Klarna to pay for a Deliveroo takeaway, it doesn’t mean that you should!
If you do decide that you’re happy and confident to buy now and pay later for a purchase, make sure you factor the upcoming payments into your budget.
According to Experian, when you ask for credit and a lender does a credit check on you, this new credit application will most likely be registered on your credit report. Other lenders can see BNPL searches, but these are excluded from your credit score for 12 to 18 months.
It’s also been reported that Klarna and LayBuy report users’ payment history to credit reference agencies. And Citizens’ Advice have found data that half of 18-34 year olds are taking out loans to make their BNPL repayments.
This year, the government are working to regulate the BNPL industry with tougher affordability checks and FCA approval for BNPL companies.
If you continue to miss BNPL repayments, some providers will refer you to a debt collection agency.
Good question! And the answer depends on a couple of factors…
If your credit card has a low or no rate of interest (an interest free period for example), then using your credit card can be as cost effective – if you repay the amount at the end of the month or within the interest free period.
But there’s another excellent benefit to using your credit card: Section 75.
Section 75 means that all purchases over £100 are protected by your credit card. So, you have an extra layer of protection if you have a problem with the product or service: you get your money back!
Using a ‘third-party payment processor’, in this case, our BNPL providers, means you don’t have a direct link to this credit card cover and so it’s unlikely you can take advantage of the extra consumer protection.
Taking out a bond is like making a loan to a business or government (government bonds are also known as gilts). In return for your investment, you get a steady income in the form of interest payments for the duration of the bond. At the end of the term, you get your initial cash back. In terms of risk, bonds are generally considered pretty safe investments to make. As usual, though, that does tend to mean that the returns are comparatively lower. If you don’t feel like going it alone in a fixed-income bond, you can buy into collective investments like unit trusts.
It’s worth stressing that investing in bonds is very different from buying shares in a business. All you’re doing is lending the organisation your cash in return for interest payments. You won’t get a stake in the company itself this way. On the other hand, bonds can be a safer bet if business goes badly. If the company were ever made insolvent, for instance, you could still lose your money like a shareholder. However, since you’re counted as a “creditor”, you stand a decent chance of getting at least a big chunk of your investment back.
You can buy company bonds from the London Stock Exchange’s Retail Bond platform, with a minimum investment of just £1,000. For gilts, you can go straight to the government’s Debt Management Office.
Before you calculate how much a house will cost, you need to know how much you can borrow. We all have a dream house. However, since the financial crash in 2009, new laws set by the UK’s Financial Conduct Authority (or FCA) mean that in most cases, banks will only be able to lend you up to 4.5 times your income. This can vary depending on a number of factors such as your credit score or if you’re buying with another person.
Most banks will offer a mortgage calculator tool. This allows you to input your income with other financial information to figure out the maximum that you can borrow.
Mortgage calculators will often use something called a “soft credit search”. These will not impact your credit score which is important if you are looking to borrow money. A better credit score can lead to better rates when taking out a loan - making it cheaper in the long run. It’s best to check that the calculator you are using only involves a soft search. Some may leave a hard search on your report, and if too many of these are used in a short space of time, you may end up affecting your credit score.
Online calculators are not the only way to find out how much you can borrow for a house. You can also use a mortgage advisor to work out this amount for you. However, some advisors can only offer certain products or providers when comparing deals. In order to see all of the offers available on the market, you’ll need to make sure you go with an Independent Mortgage Advisor. If you’re unsure if an advisor is independent or not, make sure to ask as they are legally required to tell you.
Whatever method you choose will give you an estimate on how much a bank is willing to lend you. This means you can now work out how much of a deposit you want to put down.
The most important first step you can make is to give yourself a clear picture of where you’re money’s going each month. If you’re looking to find ways to save cash, you need to spot the leaks in your wallet first.
One of the most useful hacks for this is what’s called the “zero-based” or “zero-sum” budget. It’s simpler than it sounds. First, figure out exactly how much money you’ve got coming in, regardless of where it’s coming from. Once that’s done, look at where all that money’s going. Start with the stuff you really can’t control, like rent or mortgage payments, before moving on to your “optional” spending. Finally, don’t forget to take any cash you’re saving into account. A lot of people miss this step, but remember – every penny goes somewhere, even if you save it.
If it’s sounding like hard work already, remember that there are loads of free apps designed to make it simpler. At this point, the goal is to get organised so you can make better decisions later.
Well, okay. Maybe “exciting” isn’t quite the right word, but the humble spreadsheet is still one of the most effective ways to get your budget working for you. If you don’t already have one you’re comfortable with, there are plenty of spreadsheet options on offer. A lot of them even have built-in templates specifically for managing a budget. Microsoft Excel and Google Sheets, for instance, have a range of set-ups to help guide your budget-building in the right direction.
The main thing to realise up-front is that setting up a spreadsheet to handle your budgeting really isn’t nearly as difficult as it might look. You won’t need to study up and become a qualified computer geek to stay on top of your financial plans. What you will have to do, though, is make a few basic decisions from the outset.
The first thing you’re going to want to do is choose whether you’re making a weekly budget or a monthly one. Basically, this is going to come down to the way you’re paid. Weekly budgets make more sense if you’ve got weekly wages than if you’re paid at the end of the month, for instance. If that sounds obvious, it probably is – but remember that it might not just be your own finances you’re budgeting around.
That brings us neatly to the next thing you’ll need to consider. Is the budget you’re making only going to include your own income and spending? If there’s another earner in your household, it’s a pretty good idea to include their information in a combined budget. This, naturally enough, could easily effect your decision about budgeting weekly or monthly. If your partner’s paid by the week and you’re paid by the month, for example, it might make sense to make your budget a weekly one.
With those initial decisions squared away, it’s time to start entering the key details. The first things to look at here are your bank statements, whether you get them on paper or digitally. Your statements are some of the most important budgeting tools you’ll ever have, so it pays to keep track of them.
Most of the information you’ll need can be found here. Note down all the income covered in your statements, wherever it comes from. What you’re really looking for here is the money coming in that you can count on regularly. We’re talking about wages, pensions, rent payments (if you’re making any extra cash by letting out a room or property) and any benefits you’re getting. If you’re self-employed, on a zero-hours contract or have an irregular income for any other reason, this can sometimes be a challenge. In that case, you’ll often find your best bet is to average out your income over 3 to 6 months’ worth of bank statements. Once again, your banking paperwork comes to the rescue!
Now let’s take a look at the other half of your budget: your regular spending. Start out with the costs that you really can’t do too much to bring down. We’re talking about your rent or mortgage repayments, Council Tax and other essentials like energy and water (although there are a few ways to help with those – see our guide, “6 Easy Ways to Save on Gas and Electric Bills” for more). Once you’ve got those sorted, move on to your other regular expenses, like transport costs (whether that’s petrol, public transport tickets or both), grocery bills and any medical costs you’ve got, like prescriptions or private health insurance payments.
Next up, give some thought into the spending you’re doing on a less regular basis. This is where you record the cash you spend on one-off emergencies, repair bills and so on. This kind of spending can be difficult to account for – but again, averaging the numbers based on what you’ve splashed out in previous years is a good start. For costs that crop up only once a year or so, feel free to divide them by 12 when you slot them into your monthly budget, to keep things nice and simple.
That’s pretty much your basic budget in a nutshell. The important thing now is to make good use of it. This is going to sound pretty obvious, but the main goal is to keep your spending lower than your income. If you can’t do that, then you’re going to be running up debts over time. When the balance of your budget seems to be tipping that way, it’s time to start looking for ways to either boost your income (like renting out an unused room, for instance) or to cut back on your spending. Look a little closer at those expenses you’ve been recording to see if there’s anything you could prune back enough to balance things out.
If you can get yourself into a position where you’re spending less than you’ve got coming in, you can start planning out a strategy for saving money. Again, your budget is a great help here. The trick to saving is to make a habit of it. Putting a little aside every month is generally a lot better than dumping in a big chunk of change only once in a while, particularly when you’re trying to plan ahead. The more consistent you are with your saving, the easier it’ll be to see it stack up - even if the monthly amounts aren’t huge. Most importantly, remember to include your savings in your budget spreadsheet. That aim is to record where every penny of your income is coming from and going – whether it’s spent, saved or given away. It’s called a “zero-based” budget, and it’s an incredibly valuable tool.
To get you started on your budgeting journey, we've produced a free and simple budget spreadsheet that uses the 50/30/20 rule to help you take control of your finances without a lot of hassle.
Building a budget is about making predictions. Just like an employed person with a regular income, you need to understand where your cash is coming from and how reliable it is. For the self-employed, one of the simplest ways is to base your average expected income on what you earned in previous months. You won’t be able to predict every little bump in the road or unexpected bonus this way, but the longer you keep it up, the more accurate your predictions should tend to be.
While you might not be able to predict or control every penny you’ll have coming in from month to month, there’s a lot you can do to keep your costs in line. When you make a budget, you’re trying to account for where every penny you’re earning goes – whether it’s spent, saved or given away. That means it’s every bit as important to track your spending as your income.
Naturally enough, there will be some essential costs you’ve got no way of bringing down. Others, however, might be a bit more flexible. Just to pick one of the more common things self-employed people overspend on, take a look at your broadband package. It’s easy to assume you need a top-tier superfast service, but if all your business needs is email and maybe decent video conferencing, you might be paying too much to get online. Even if you don’t want to slim down your service, you might still find a better deal on a similar package if you’re prepared to scout around a bit.
So, armed with a clear picture of what you’re spending each month to keep the lights on and a good estimate of your expected income, it’s time to turn that information into an actual budget. The good news is that you’ve already done most of the hard work!
Having regular bills and irregular income needn’t stand in your way too much here. You’re already used to working with averages, so you’ve probably got a decent idea of your annual income. You’ve checked through your regular bills, so you know what your unavoidable yearly “overheads” like electricity and internet access are costing you. Working out what percentage of your total income is being taken up by these essential expenses will tell you what you need to set aside for them each payday.
So that’s the job done, right? Well, not exactly. Bills have a nasty habit of sneaking – or rocketing – up over time, so each year you’ll need to readjust your calculations a bit. The whole point of budgeting is to keep your cash flow healthy over the long term, so working from up-to-date figures is a must. If there’s an unavoidable price hike on the horizon, make sure you’re putting aside enough money now to cope with it later.
The yearly Self Assessment tax returns you have to file when you’re self-employed can easily trip you up if you’re not prepared. Leaving your planning for how to pay up what you owe until after you’ve already filed your return is a dangerous road to walk down. It’s all too easy to get lumped with a tax bill you can’t pay at the end of the tax year, or payments on account that you haven’t got the cash flow to cover.
Luckily, since you’re already used to estimating your annual income, you should already have a good idea which tax bands you’ll be dealing with. If you know you’ll only be paying at the basic rate of 20%, for instance, you’re in a decent position to prepare by setting aside 20% of your earnings as they come in. That’ll keep your Income Tax covered – but there’s still more to pay!
We know, it sounds nightmarishly complicated. In practice, though, it’s all calculated automatically when you file your Self Assessment tax returns online. The main point is to keep your National Insurance situation in mind throughout the year, because Income Tax isn’t the only way HMRC dips into your pocket.
Cash flow crises can be incredibly dangerous when you’re self-employed, with the money flowing through your business getting choked off by late-paying customers, unreliable suppliers or unexpected costs. Even the best-prepared business will sometimes find it didn’t bring in as much money in a month as it expected. That’s what a rainy day budget is for. A good rule of thumb is to aim for an emergency cash stash that’ll tide you over for at least 3 months of your basic living expenses. It sounds like a bit of a hill to climb, but you don’t have to reach the top all at once. Just keep socking a little away regularly until you hit the summit. You might never need to fall back on your rainy day fund, but you’ll be glad of it any time you’re struck with a short-term financial disaster.
It’s not always essential to have a dedicated business account when you’re self-employed. If you’re a Sole Trader, for instance, you might be keeping your finances simple by just using your personal bank account for your business cash. However, a separate account can be a useful thing to have when you’re keeping a close eye on how your business is doing. It’s not always easy to get a clear picture of your work finances with your personal money cluttering up the numbers. When you make payments for essential work expenses, for instance, they can bring down the profits you’re being taxed on in your Self Assessment paperwork. Keeping those finances separate makes it a lot easier to tell your allowable expenses from your personal spending so you don’t miss out on the tax relief you’re owed.
With Self Assessment, it’s incredibly important to understand the connection between the money you’re spending to stay in business and the tax you owe. If you’re not letting the taxman know about all your allowable expenses, you’ll end up pouring much more than your fair share into HMRC’s pockets. Anything from professional clothing and equipment to work travel, meals and accommodation can count toward the tax relief you’re owed – but it all depends on your situation. For example, if you use the same phone for work and personal calls, only the money spent on business use can count against your taxable profits for Self Assessment. It can take a bit of legwork to make sure you’re claiming for every eligible cost, but it’s really worth getting it right. Self-employed people without a lot of business expenses to claim for in a year can actually simplify things a lot by claiming a tax-free trading allowance of £1,000 instead of working out all their allowable costs.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Let’s take the biggest step first. If you’re planning on moving out, getting control of your finances is Job One – and that means making a budget. Don’t worry; it’s a lot less scary than it sounds. You’re not going to need to become an expert accountant overnight. All you have to do is paint yourself the clearest, most complete picture you can of the cash you’ve got coming in and going out, then use that information to make a plan.
One of the best ways to do this is to draw up a “zero-based” budget (sometimes called “zero-sum” budgeting). All this really means is listing out every penny of your regular income, no matter where it comes from, and every penny going out, whether it’s spent, invested, saved or just given away. You can read more about zero-based budgets in our other guide, “4 Fixed Income Saving Strategies – Combine to Win!”
So, with your zero-based budget all mapped out, what can you do with the information? Well, for starters, it’ll make it a lot easier to get into some great saving habits. When you’re putting away your spare cash, little and often’s usually a lot better than dumping in larger amounts at random. With the information from your budget, you should be able to set yourself up a “50/30/20” system. Basically, each month, you set aside 50% of your income for essential expenses, 30% for fun stuff and 20% for savings. The trick to it, of course, is keeping the consistency up. Whatever you’re saving toward, though, building good habits from the outset can make a huge difference to your overall finances.
You’ve probably heard of budgeting before. But what does it really mean? It’s the act of getting all of your income together and putting it against your outgoings. Once you’ve done this, you can start to see where your money is being spent and can make more informed decisions.
Without a budget, you’re spending blind. The danger of this comes when you’re spending more than you actually earn and fall into debt.
Think of your income as water coming from the tap - and your outgoings as leaks. The more you spend on one thing, the more money escapes from your income stream. Identifying where you’re spending can help you plug any holes, helping you reallocate money to where you really need it.
Getting organised with your money is the first step in budgeting… and it doesn’t take as long as you might think. Arm yourself with a notepad and pen or a spreadsheet depending on what works best for you - and block off a day to go through your spending.
In terms of paperwork, the more information you can get (your hands on), the better:
As you spend different amounts of money at different times of the year, going back 12 months will give you a better idea of your spending all year round. For instance, you might spend significantly more around Christmas than in January.
Thankfully, most of this information can be found online, so you won’t have to go digging around for paper copies.
To make sense of all these numbers, there are loads of free budgeting spreadsheets with inbuilt formulas to do all the calculations for you. Some may be really simple and some have more detailed sections about monthly outgoings. Simply pick one that (best) suits your needs - you can always rename certain sections if there’s no perfect match.
Before we get into working out the numbers, make sure you hit the subscribe button below. That way, you can stay up to date with the best ways to make your money go further…because you’re always better off with rift! Now that’s done, let’s get to the fun part - working out what you have to play with.
We all wish we could take home our entire salary. Unfortunately, that’s not the case. When working out your budget, it’s important to use your income after all deductions are taken out. That includes tax, national insurance, and pension contributions.
If you used your pre-tax salary, you’d end up with a number much larger than what actually goes into your bank account. That may look great on your spreadsheet, but it could lead to spending more money than you have.
The best way to look at your income is to add up all of the amounts on your payslips and divide it by the number of months they’re from. This way you’ll get an average that you can expect to take home each month.
For those with big differences in their pay, you may want to be a bit more cautious as some months may fall short of this figure. You might be best trying to save additional money from the higher paying months, so that you can make up the rest on the lower-paid months.
So we’ve worked out how much is coming in. Now it’s time to calculate what’s going out. This can be split into two categories - essentials and non-essentials. Essentials are everything that you need to live. These include:
It’s likely some costs - like household bills and food - will change every month. So, work out an average to get a rough idea of how much you spend on each.
Once you take away this essential spending from your income, you’ll be left with a figure that’s called your disposable income. As this section is the most likely to fluctuate, it’s definitely worth breaking it down.
Some examples might include:
Now all your money’s accounted for, you’re much better equipped to make judgements on your spending. For instance, if renting is taking up a huge chunk of your income, you could set an ideal amount before looking for new properties. This way you can set a cap to ensure you’re spending an amount you’re happy with.
As mentioned earlier, some months may be more costly than others. Yes, we’re looking at you Christmas. However, with enough time you can budget for this. If you know you’re likely to spend £300 at the end of the year, you can always put this into your budget. Simply divide £300 by 12 months and put that into your outgoings. By putting £25 away each month, you’re less likely to feel the shock in December than if you had to pay it all in one go. This method works for pretty much anything - from MOTs to holidays.
If your outgoings are more than your income, you may want to put your spending habits under the microscope so you don’t go into debt. If this is the case and money is a concern for you, it’s best to speak to a financial advisor. Several charities also offer free advice.
And remember, these are just the basics of budgeting to get you started. It’s important to revisit your spending every month to keep up-to-date with where your money’s going.
When you commit to saving, you’re making a potentially critical investment on your own future, so starting young makes sense. Your early decades are a great time to get to grips with things like pension planning and basic budgeting. The trouble is, this isn’t usually the kind of thing they dig deeply into at school. Most of us are pretty much left to educate ourselves on simple money management. When you’re 21, pensions can seem like such a non-issue that they’re hardly worth learning about – much less paying into. However, having even just a rough idea of how the system works can be a major leg-up when you start working and building up a pension of your own.
So how do you kick-start some good savings habits? Well, the first thing to do is open up a spreadsheet. Don’t worry – that’s about as scary as this is going to get. We’re not expecting you to become an instant financial expert. Just open your sheet and start recording what you earn each month in it. When you spend money, make a note of that too. Pretty soon, you’ll have the makings of your first real budget plan laid out.
Remember that the small details matter. Every amount you’ve spent, no matter how small, goes into your spreadsheet.
Remember to record what it was you spent it on, too. You’ll quickly get a clear picture of where all your cash is going – and that’ll be important when you start to plan your saving.
Yes! There are lots of everyday work expenses that entitle you to tax relief, but so many people just don't realise they qualify. Small tools from hairdressing scissors to masonry drills can count for a rebate claim, as can any required licences or professional subscriptions. This is a huge and often misunderstood area of tax law.
One of the biggest tax rebate issues is travel to temporary workplaces, but anything from visas to vaccinations can count. Understanding what you can claim for (and, just as importantly, what you can’t) is the key to maximising your tax refund claims while staying on HMRC’s good side.
Tax rebates are a really tricky area, which is why so many people decide to get professional help with them. The basic idea is that when you have to spend money to do your work, some of your costs can be used to bring down your tax bill. That said, the regulations are complicated, and you can get into serious trouble if you mess up. Not claiming back everything you’re owed is painful enough. Claiming too much is a whole lot worse once HMRC catches on.
There are a lot of reasons why you might be owed some tax back, but the main one is generally work expenses. Travel to temporary workplaces, repair and replacement of any essential gear and a whole range of other everyday costs can build up into a decent tax refund claim.
When HMRC works out the tax you owe, it assumes you’re working regularly throughout the year. If you’re a student doing casual or short-term work, though, you could end up paying too much tax. Basically, a holiday job could see you only being paid for a couple of months, but charged a whole year’s worth of tax. Worse yet, you’re probably still under your Personal Allowance for the year, so you shouldn’t have been taxed at all!
Luckily, whatever the reason you’ve paid too much, you can claim a tax rebate to settle up. You can generally check your tax and claim your refund online - but again, a lot of people prefer to get professional help. Claiming refunds properly means keeping track of a lot of paperwork, from the official documents you get from your employer to receipts and invoices for your expenses. You can find the official tax checker here: https://www.gov.uk/check-income-tax and the refund tool here: https://www.gov.uk/claim-tax-refund.
One of the problems with dealing with HMRC is the amount of jargon they use. Ask the taxman about Capital Gains Tax, for example, and he’ll flood your ears with talk of “disposing of chargeable assets” and other confusing terms. Basically, what we’re talking about here is a tax on the profit you make when you sell, swap or give away something that’s gone up in value since you bought it. It even counts if the “asset” got lost or damaged and you claimed compensation for it.
The trick to getting your head around Capital Gains Tax is to understand that it’s the profit you make that matters. That’s what you’re paying tax on, not the full amount of money you got for it. So, to put it in real terms, let’s say you bought a work of art for £5,000. You held onto it for a while, then sold it on for £25,000. Your total “chargeable gains” (the amount you’ll actually pay the tax on) come to £20,000, since that’s the overall profit you made on the deal.
When you boil it down to the basics, Capital Gains Tax (CGT) isn’t all that complicated. At its simplest, it’s just the tax you owe on your profits when you sell something that’s gone up in value since you bought it.
Keep in mind that it really is just the profit you make when you dispose of an asset that counts for Capital Gains Tax, rather than its entire value. The amount you originally paid for it makes a huge difference to the tax you owe. The more it cost you, the less profit you made (and have to pay tax on).
All clear as crystal so far, right?
Well, not quite. While those are the bare bones of it, there’s a fair bit more to know about Capital Gains Tax. For example, you don’t technically even need to sell your “asset” to end up paying tax on it. Capital Gains Tax can hit you any time you “dispose” of something it applies to. That can mean when you swap it for something else, give it away or even claim compensation for it if it gets lost or stolen. All of these situations can count as disposing of your asset.
So what exactly is an “asset” for Capital Gains Tax? In general terms, if it’s a physical, movable thing that’s worth at least £6,000, then it probably counts as an asset. That could mean artwork, jewellery, or even book collections and wines. There’s an exception for privately owned cars, but other kinds of vehicles can still count for the tax.
If you dispose of property that’s not your main home then you’ll probably owe Capital Gains Tax on your profits. In fact, if you were using your main home for business or letting it out, even that can count for the tax. The same goes for any shares (unless they’re in an ISA or Personal Equity Plan) or business assets you dispose of.
Anything with an expected lifespan of 50 years or under will generally be exempt, but the rules can get fiddly here, so it’s probably best to get professional advice if you’re not sure where you stand.
Like a lot of UK taxes, there’s a threshold you have to hit before you start owing anything on your capital gains. For the 2024/25 tax year, for instance, there’s a tax-free allowance of £3,000, or £1,500 for trusts. If your overall profit from disposing of assets ends up below this amount, you won’t pay any Capital Gains Tax on it.
If you’re married or in a civil partnership, then the rules for Capital Gains Tax have a little flexibility in them. In fact, unless you were separated and not living together at all during a tax year, you won’t pay any Capital Gains Tax if you “dispose of” an asset to them. At least, not unless you did it so their business could then sell it on.
Watch out, though – your spouse or civil partner could easily still get hit with Capital Gains Tax if they later dispose of the asset. If that happens, the rules work in the usual way. They’ll pay tax if they sell the asset, swap it, give it away or claim compensation for it. In this case, the profit they pay tax on will be based on the amount you originally paid for the asset, compared to the value they dispose of it for.
There’s another general exemption for Capital Gains Tax on items you give to charities. However, a wrinkle in the rules means that you could still have to pay CGT if you sell the item for less than its market value (but still make a profit compared to what you paid for it). Again, talk to a trusted professional if you’re not 100% sure whether you need to pay Capital Gains Tax or not.
When you pay Capital Gains Tax, the rate you’re hit with depends on the highest tax band you fall into. Basic rate taxpayers, for example, pay a percentage based on the size of their gains (their overall profit), their taxable income and whether or not the gains come from residential property. We know, that sounds complicated – and it definitely can be.
One bright side to the Capital Gains Tax system is that it cuts both ways. If you make a loss from disposing of assets, you can report it to HMRC to deduct it from your total taxable gains for the year. These are called “allowable losses”. You can actually report losses like this for up to 4 years after the end of the tax year when they occurred. Obviously, if your losses from disposing of assets mean your total taxable gains drop below the tax-free allowance for CGT, you’ll end up paying no tax on them.
If you want to learn even more about Capital Gains Tax – particularly how it compares and overlaps with Inheritance Tax, check out our other article, “The Difference between Inheritance Tax and Capital Gains Tax”. In the meantime, keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Capital Gains Tax applies when you profit from selling or disposing of an asset that increased in value. The tax rate depends on your income level: 18% for basic rate taxpayers and 28% for higher rate taxpayers for properties; 10% and 20% for other assets. Chancellor Jeremy Hunt reduced the Annual Exempt Amount from £12,300 to £6,000 in 2023 and then to £3,000 in April 2024. Couples can combine their allowances to double the tax-free threshold.
For thousands of motorists, the recently expanded ULEZ will have only added a further financial strain to the cost of running their car on a day to day basis. The charge of £12.50 per day applies to any car that isn’t ULEZ exempt up to and including 3.5 tonnes, or 5 tonnes for mini buses.
It’s thought that there are some 700,000 cars across London that don’t meet ULEZ emission standards. That’s a potential tax grab of £8.75m per day should they all hit the road and, for the average person using a non-ULEZ compliant car for business purposes, the £12.50 charge amounts to £3,250 over the course of the working year (260 days).
There are some ways you can beat the ULEZ charge. For example, classic cars built before 1982 which are tax exempt are also ULEZ exempt. This cut-off date also rolls forward so by 2025 you can purchase a pre-1985 motor and it will be ULEZ exempt.
Agricultural and military vehicles are exempt, as are cranes, meaning you could commute in a tank, tractor or crane and not have to pay the ULEZ charge.
Failing that, you could join the circus. Anyone driving a specifically constructed or modified ‘showman’s vehicle’ used for a performance, or to haul performance equipment is exempt.
However, the most realistic way for many motorists to forgo the ULEZ is if they are self-employed. While you still need to pay the tax upfront, you can claim it back through your tax bill if the journey was ‘an exceptional trip solely for business’.
It’s not just the cost of the ULEZ that self-employed motorists can claim back, there are also advisory fuel rates that allow them to be compensated, usually when using a company car.
The good news is that as of the 1st September, these rates have increased. Petrol cars between 1401cc and 2000cc can now claim £0.16 per mile, an increase of £0.01. Petrol cars over 2000cc have seen a £0.02 increase, allowing them to now claim £0.25p per mile. While diesel drivers over 2000c have also seen a £0.01 uplift, allowing them to claim £0.19 per mile.
This means motorists in petrol cars between 1401cc and 2000c can claim an average of £2,650 back per year. Those driving cars with an engine greater than 2000cc can claim an average of £4,140 per year. While drivers with a diesel engine larger than 2000cc can claim £3,146 per year.
With car insurance, the amount you’re expected to pay is based on how safe your insurer reckons you vehicle is in your hands. When they make their calculations, they’re looking at how risky it is to insure you. The less safe they feel, the higher your premiums will be. Partly, it’s about how likely they think you are to have an accident – but there’s actually a lot more to it than that. Let’s take a look at some of the main “risks” they’ll be weighing up.
One of the first things your insurer will look at is your age. It might seem unfair, but younger people are basically always asked to pay more for their car insurance. It’s not just prejudice, though. There’s actually a bit of science behind it. If you’re in the 16-24 age bracket, you’re flat-out more likely to get into a road accident than any other group. It’s such a glaring red flag in the statistics that people are coming up with ways to bring that perceived risk factor down. You see that with things like telematics “black boxes” installed in cars (or on phones, in some cases) to track how safely you drive and adjust your premiums around that.
Another big risk calculation insurers make is your location. After all, insurance isn’t just about accidents. Your insurance price will include an assessment of the vehicle crime rates where you live and where the vehicle’s stored. It’s kind of a postcode lottery, where lower crime rates will generally mean lower premiums. There are still a few things you can do to knock your risk levels down a notch or two, though. Keeping your car in a locked garage can help put an insurer’s mind at ease, for a start. If that’s not possible, even getting a good immobiliser can make a difference.
It might seem strange that the kind of work you do can have an impact on your car insurance prices, but it makes sense if you think like an insurer. If your job sounds like it involves a lot of road use, you can often find yourself paying more. In fact, even the same job can sound very different to an insurer if you use different words to describe it. Describing yourself as an “editor” rather than a “journalist”, for instance, has been known to affect insurance rates. To an insurer, an editor sounds like someone who sits safely in an office all day. A journalist, though – that’s someone you can imagine taking risks in dangerous places. In real terms, they might be doing the exact same job – but which do you reckon gets the better offers on their insurance?
Okay, now let’s look at your vehicle itself. The kind of car you drive can make a pretty big difference to its insurance group – and therefore to the rates you pay. An expensive car, for instance, can mean high-cost repair bills and replacement parts. That’ll pump up your premiums fast. Older cars, perhaps surprisingly, can also fall into this trap, simply because they’re often considered to be less secure against theft or break-ins.
So that’s the basics of your risk calculation handled – but what kind of cover are you actually buying? Obviously enough, the more kinds of mishaps your insurance covers, the more expensive it’ll wind up being. Comprehensive cover, living up to the name, protects you against more or less anything. Third Party Only, on the other hand, doesn’t really protect you at all. It only protects other people against you. That’s basically the minimum insurance you can legally drive with. In the middle, though, we find Third Party, Fire and Theft cover – which is more or less self-explanatory.
When your insurer works out your rates, they’re naturally going to want to know about your car use. Basically, the more use you get out of your vehicle, the higher the risks. If you drive for pleasure as well as business, for example, you’ll pay more than someone who only uses their car for work. If your work racks up a lot of mileage or hours on the road, that’ll factor in too.
Next up is your excess. This is basically the amount you’re expected to kick in before your insurance claim starts paying out. It comes in 2 basic flavours: compulsory and voluntary. The compulsory excess built into your insurance plan is decided directly by your insurer. Whenever you make a claim, you have to pay this much up-front before you get anything from your insurance. With a voluntary excess, you get a say in how much you pay before your claim takes up the slack. The higher you set that, the less you’ll get out of your insurance – but the less you’ll usually pay in your premiums.
Finally, there’s another, more general category insurers will consider. Things like how clean your driving record is, for instance, can make you seem like a better or worse insurance risk. Also, having other specific drivers can change your costs, depending on who they are. Most of the time, adding extra drivers to your policy will tend to ramp up your “threat profile”, along with your insurance payments. However, if you’re a young driver, adding an older, more road-tested person to your policy can actually bring your prices down.
If you understand the way an insurer thinks, and have a decent strategy going in, there’s quite a lot you can do to bring down your car insurance costs. Probably the most obvious thing is not to blindly take the first offer you see. Price comparison websites are probably the most efficient way to start. Just plug in your details and you should get a pretty good idea what the competition’s offering before you dive in. Watch out, though, comparison sites sometimes work more like “marketplaces” than strict apples-for-apples evaluations. The same insurer won’t necessarily post the same prices on every site, so it’s worth checking more than one.
How to use price comparison sites
There’s also a timing issue to keep in mind. You can buy your insurance up to 29 days before the start date, so leave plenty of time to scout the territory in advance. That way, you won’t end up having to make a hasty decision you’ll regret later. It can actually affect your risk level in the insurer’s eyes, too. Generally, if you start sniffing around for quotes about 3 weeks before your actual renewal date, you’re likely to look like a safer bet than someone who only checks at the last minute. Insurers like drovers who think ahead, and they get nervous if it seems like you’re the “just-in-time” type.
Like any other important purchase or contract, it pays to look closely at the details. Don’t trick yourself out of your cover by not understanding the strings attached or following the conditions. Check for things like whether you need to have a telematics device (those black boxes we talked about earlier) or something similar to get the prices you want. You might find your great price relies on you keeping inside the speed limit or other conditions. If you don’t keep up your end of the bargain you can expect to pay more – or even lose your cover altogether!
Another thing to think about is how you’ll be paying for your insurance. Paying monthly, for instance, is a lot like taking out a loan. You’re spreading the cost out, but you’ll end up paying more overall because of the interest you’re stacking up. Don’t underestimate this; it’ll add up quickly over time. If you can afford to pay the whole lump off at once, you’ll end up in a better position. If you’ve got a 0% credit card to fall back on, you could consider loading the whole amount onto that. Just be sure you can pay off the entire balance before the end of your interest-free period.
We mentioned your voluntary excess before, so let’s dig into that a bit. When you raise your voluntary, you’re shouldering some of the insurer’s risk for them. In most cases, they’ll react by offering you a lower premium. Of course, you have to be sure you’ll be able to afford your voluntary excess if the worst happens. It’ll need to be somewhere easy to access, too, to be sure you can pay up and make your insurance claim quickly.
Insurers tend to reward responsible vehicle owners with discounts on their premiums, called a no-claims bonus. In some cases, keeping your bonus can actually be better than making a claim – at least if we’re only talking about minor cosmetic damage. Paying for smaller repairs yourself can keep your premiums down, which can actually work out cheaper in the long run.
Another important tip: always make sure you’ve got the cover you actually need. Some insurers will try loading your plan down with add-ons and extra features at “unmissable” prices. Don’t take on the costs of things that really aren’t necessary. Some of those deals might not even be as good as they look. You can often buy “add-ons” separately anyway – and maybe even cheaper.
If you’re going to list any additional drivers on your insurance policy, pick the right ones and don’t try to cheat the system. Adding experienced drivers is a great way to bring down your costs, but don’t list anyone as the main driver if they’re not. You can end up blowing your entire cover if you aren’t completely honest.
Speaking of being honest, there may simply come a time when you realise you’ve got the wrong tool for the job. You might love that SUV, but is it really worth all the extra costs you’re running up to insure it? Vehicles with smaller engine sizes tend to fall into cheaper insurance groups, so swapping down to a more reasonably sized car could be a smart move. Make sure you check the specific offers, though. Even cars of the same basic size can carry different insurance costs based on things like their make.
That’s it for this basic guide to getting the best from your car insurance. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Care work is rewarding work, whether you’re doing it for a family member or as your main job. It’s also demanding work!
A Carer is typically someone who looks after a family member, a neighbour or a friend. You don’t have to be related to the person you look after.
The person you look after can require care for any reason. Perhaps they are elderly or have a disability. They may have long term illness, a mental health condition or drug or alcohol dependency.
If you’re a Carer, you may qualify for an allowance or reliefs may be available.
A Care Worker is employed by a company, agency or charity. You’ll have regular shifts/hours that you work, full- or part-time. As you get paid for your work, you can’t claim Carer’s Allowance but you may qualify for tax relief on things like travel expenses.
If you care for someone, even if you’re not related to or live with them, you could qualify for Carer’s Allowance.
In 2022/23, the rate for Carer’s Allowance is £69.70 per week.
To be eligible, the person you care for must receive one of the following benefits:
And you must meet the following criteria:
If you tick all the boxes, find out how you could claim Carer’s Allowance here.
You can only claim once, even if you are looking after more than one person.
If Carer’s Allowance is your only income, you won’t have to pay tax on this claim.
However, the allowance is taxable and must be counted in taxable income. So, if you have income from another job or, for example, a personal pension, and that all adds up to more than the personal allowance (£12,570), then you will owe tax.
If you’re an employee, your employer will pay your tax through PAYE. If you have other incomes, you’ll have to declare these by filing a Self-Assessment tax return.
If you’re a Carer claiming Carer’s Allowance, you cannot claim any expenses. This also means you’re not eligible for a tax refund.
This is different if you’re a Care Worker…
If you’re employed as a Care Worker and you have to use your own car to travel to patients’ homes, you may be able to claim the mileage allowance as a tax refund.
You can do this if your company doesn’t already reimburse you for travel expenses.
Find out more about Tax Breaks For Healthcare Workers.
Healthcare workers in both the private sector and working for the NHS can qualify for a tax refund.
That’s because you most probably spend some of your own money on work-related things like travel for work or washing your uniform.
A healthcare worker tax refund is for anyone who:
Ask us if you’re not sure.
Unless you’re actually running a business yourself, you’ll probably tend to assume that all payment methods are the same. The thing is, you might actually find yourself getting a slightly better deal from your labourers by coughing up in cash instead of plastic. It might sound slightly old-fashioned these days, but there’s actually a real benefit to cash payments for many people. When you take a payment by credit or debit card, you end up paying fees for the transactions. Obviously enough, people faced with these fees will tend to pass them on to their customers in the form of a higher quote. If you pay in cash you eliminate those fees, and might see the benefit in a lower quote as a result.
We’re basically all going to end up shopping online anyway, so why not make it work in your favour? There are websites out there that partner up with top brands in their thousands to put money back in your pocket when you buy.
How does it work? Well, when you buy something from a seller featured on a cashback site, the seller gives the site a commission – which they share with you. You can then transfer that cash into your bank account, turn it into a gift card or use it in a range of other ways. One site called topcashback.co.uk boasts that an average member earns £345 per year through their scheme.
New site users often get bonuses like higher percentages, too, boosting your earnings in the early stages. It’s worth keeping in mind that you probably won’t get your payment the moment you buy something. In most cases, there’s a set amount of time to wait before you get your payout – often until after the return period’s over.
Whatever kind of work they do, pretty much everyone dreams of being their own boss sometimes. Whether that means building an empire, or just putting one brick on top of another, it's about independence and freedom.
Right now in construction, we've got close to 100,000 self-employed workers. With almost 40,000 of those appearing in the last year, the government's actually kind of worried about it. In fact, they've been clamping down on certain kinds of self-employment with new rules and regulations.
What they're mostly bothered about is what they call "false self-employment". Basically, some firms were working a tax dodge by treating their employees as subcontractors when they really weren't. It was bad for HMRC, and worse for the workers. As well as ducking taxes, some of these "intermediaries" were avoiding responsibilities like employment rights and holiday pay.
The government's been cracking down on false self-employment in construction, but honestly they're flailing around a bit about it. That's lead to a bit of confusion.
There's good and bad about self-employment, obviously. You get some freedom and flexibility you might not otherwise have, that's true. You've also got a load of new responsibilities, too. You need to file your own Self Assessment tax returns, for one thing. Also, you can say goodbye to job security, sick pay and your workplace pension. It's a swings-and-roundabouts thing.
Another consideration is that working for yourself can easily turn into working for nobody. There's always competition out there, and you really need to promote yourself to get work. You can't count on clients to magically trust you - or even to know you exist!
Along with the challenge, though, there's always opportunity. Experts are warning the construction industry's facing a "skills time bomb". There just aren't enough highly skilled workers coming up through apprenticeships and training schemes. Demand's booming, but we're running out of workers. You might well find that a specialised skill you have is the ticket to a whole new corner of the market.
If you're already self-employed, or looking to go that route, get in touch with RIFT. We're experts in construction and know the terrain like no one else. From tax refunds to Self Assessment returns, we're here to help you build your dream job.
Once you've set your Marriage Allowance up, you don't need to apply again unless your situation changes. Obviously, getting divorced means you can no longer make a Marriage Allowance claim, for example. The death of either partner will do the same, naturally enough. You can even cancel it yourself if you need to for any reason.
Since there are income thresholds involved, a change in either your earnings or your partner’s can also affect your Marriage Allowance claim. For example, if you suddenly start making more than your Personal Allowance, you won’t have any extra to transfer to your spouse or partner. In the same way, if you find yourself bumped into a higher tax bracket, you no longer qualify to receive Marriage Allowance at all. When something changes in your circumstances and you’re not sure if you still qualify for (or benefit from) the Marriage Allowance scheme, talk to RIFT tax refunds to keep yourself on the right track.
The usual suspects like B&Q, Wickes and Selco will often put on sales, so it’s a good idea to stock up on supplies when you spot a good deal. If your job ends up requiring large amounts of any given material or item, grabbing them when they’re cheaper can bring down your overall costs quite a lot – even if you weren’t planning on getting the repairs or renovations done immediately.
Childcare support comes in a few basic flavours. You might be able to get tax relief on your pay, for example, or specific benefit payments to cover your costs. You could also claim completely free childcare places with approved organisations or “Tax-Free Childcare”, where the government tops up the cash you’re saving specifically for childcare costs. If you’re working PAYE, your employer might also have a scheme running to help out. As your circumstances change, the kinds of support to can claim might change, so it’s important to understand the rules.
By law, you’re generally entitled to some free hours of childcare each year in the UK. What you can get depends on a few things, including where you live.
In England
In Scotland
Talk to your local authority or childcare provider about claiming your free childcare.
Child Benefit is generally for people with kids under 16, and comes in at a flat rate of £21.15 (set to rise to £21.80 from April 2022) a week for your first child. Additional children entitle you to another £14.00 (set to rise to £14.45 from April 2022) per week each. Only one person can receive the child benefit allowance for a child and it is paid every 4 weeks.
If your child stays on at school past the GCSE level, you’re still entitled to Child Benefit until they turn 19. However, you won’t get that automatically unless you reapply for it. Your kids continue to qualify as long as they’re still in full-time “approved education”. This means A-levels (or equivalent), Scottish Highers, NVQs or vocational qualifications up to level 3, traineeships in England or home education (as long as they started it before turning 16). Certain types of “approved training” can also qualify for Child Benefit. Examples include Foundation Apprenticeships in England and Wales, Employability Fund programmes in Scotland and United Youth Pilot courses started before the 1st of June 2017.
One additional little wrinkle to the Child Benefit system is the High Income Child Benefit Tax Charge. While Child Benefit isn’t means tested, this charge does start to kick in once either you or your partner is earning over £50,000 a year. The charge basically boils down to 1% of your Child Benefit for every £100 you earn over the £50,000 threshold. So, by the time you hit £60,000, you’ve burned through your entire Child Benefit amount and get nothing. The strange thing is that a couple each making £49,999 a year each would still qualify for full Child Benefit. However, another couple with one partner earning £51,000 and the other only £20,000 would get hit with the charge.
You can start a Child Benefit claim here.
If you’re claiming Universal Credit, you could qualify for what they call the “childcare element” of the payment. There are a couple of basic rules on who’s eligible for this.
Eligibility
Amount of support available
For more on Universal Credit, look here.
What is it?
Under the Tax-Free Childcare system, you can get quarterly payments of up to £500 per child you have who’s 11 or under – to a maximum of £2,000 a year each.
What can I use it for?
Not just any costs can count for the scheme. Tax-Free Childcare can be used for things like:
In every case, your provider needs to be signed up to the scheme to qualify.
How do I apply for tax-free childcare?
How much can I get?
For every £8 you spend on approved childcare costs the government pays £2 into your account – basically wiping out the 20% basic rate of tax on what you’re spending.
Important things to note
One thing to watch out for is that you can’t claim Tax-Free Childcare if you’re on Universal Credit. If you still qualify for older forms of childcare support (like Child Tax Credit or Childcare Vouchers), then you won’t be able to get Tax-Free Childcare on top.
In some cases, you’ll be better off sticking with what you’re already getting, but it’s not always cut-and-dried. If you try to claim Tax-Free Childcare while you’re on tax credits, though, your tax credit claim will end.
You can apply for Tax-Free Childcare online and to get more information about how to apply.
If you’re a student, your college might have a Discretionary Learner Support scheme. You need to be at least 19 to qualify for this, and can use the money for things like childcare, accommodation, travel and course materials. What you can get depends mostly on where you’re studying. You can read more about this here.
If you’re studying full-time in higher education, you might be able to apply for a childcare grant. This is on top of whatever other student finance you have, and because it’s a grant you don’t need to pay it back. Your kids need to be under 15 to qualify, or under 17 if they have special educational needs. Find out more here.
If you’re under 20 yourself and studying, “care to learn” payments might be another option. If you qualify and are looking after a child, you could claim up to £160 a week per kid (or £175 if you’re in London). The cash is paid directly to your childcare provider for as long as your course lasts, or until your children no longer need childcare. Check here for more information.
The Childcare Voucher system used to let you take up to £55 a week of your wages in the form vouchers. The benefit of this was that you didn't pay any National Insurance or Income Tax on that portion of your earnings. The actual amount you could take this way was based on what you earned and when you signed up. When the new system came in, people already getting Childcare Vouchers had the option to stick with them. Anyone signing up after or changing to an employer that didn't support vouchers had to switch to the new system, though.
As for Child Tax Credit, that’s one of the older benefits being replaced with the Universal Credit system. That means most people can no longer sign up for it. There are a few exceptions, though, so it’s always worth checking where you stand and what your best options are.
To slap some hard numbers on this, the International Monetary Fund (IMF) announced it was expecting UK inflation to average out at 10.5% in 2022. That's a big leap up from the 7.8% estimate it gave out just a few months earlier. Essentially, inflation means the pound in your pocket is dropping in value, and when the rate's high then everyday costs get harder to meet. With Christmas traditionally being a time when we all splash out a lot more, it makes good sense to start spreading those costs out as much as we can.
Price comparison site Finder.com reckons that the average cost of Christmas is set to hit £1,023 per household this year. Given the typical 2022 family income after tax of £1,926, that means we'll be blowing over half what we're earning during the festive season on our Christmas shopping alone! All told, taking account for inflation, the country as a whole's probably looking at a total Christmas shopping bill of close to £7 billion for December 2022 alone, with many of us already months into our gift-buying by then. So who's spending all this cash, and what are they getting for their money?
Averaging it all out, a typical British household will splash out something like £2,500 per month. According to statistics from the Bank of England (which likes to keep a close eye on things like this), that figure snowballs up by another £740 in the month of December—close to a third higher. Obviously, averages like that doesn't paint the whole picture. Depending on where you live in the UK, your likely costs could vary up or down a fair bit. In London, for instance, the typical Christmas spend was a whopping £1,746 per person in 2021! At the other end of the scale, people in the North East were spending around £994 each on average that year. That's still a lot of money to lay down, obviously, but it should give you an idea of the ranges we're dealing with.
As for where all that cash is going—again, the Bank of England's taken a close interest in this. UK spending on books, music and video recording equipment basically doubles in December. Computer and phone sales jump up by over 60%, while the amount we're blowing on drinks (alcoholic or not) and tobacco rises by 38%.
There's other stuff that goes down at the same time, though. For instance, December tends to see a pretty sharp drop (just over 20%) in things like paint and hardware. Chances are, this comes down to people putting off all those little DIY jobs around the house until after the Christmas decorations come down.
So, what does all of this add up to? Here's a quick run-down of what a typical British Christmas is looking like in financial terms:
Okay, so we've got a broad idea of what a standard Christmas is likely to cost us. How do we take control of those costs to make sure we don't spend the New Year neck-deep in debt? We've talked about making budgets in our guides before, and saving up for Christmas really isn't all that different from saving for any other large costs, like a used car or a house deposit. The key is to work out exactly how much cash you reliably have coming in, and to divide it up into your essential costs, your "fun money" and your savings. It's called the 50/30/20 rule, and it's the foundation of a really strong budget. You can get a head-start on your Christmas planning with our free online tool to show you how the system works.
Free tool: Christmas Budget Planner
Meanwhile, it'll be well worth your while considering other ways to bring your Christmas spend down a little.
1) Plan ahead and manage expectations
Ideally, you ought to make a list (and check it twice) long before you head out to the shops or click on the Shop Now button. If nothing else, you could save a packet on your parcels if you're doing a lot of your buying at the same site. The more you buy at the same time, the easier it is to hit that magic free delivery target. While you're planning, consider setting a maximum spend with your friends and loved ones. Agree a figure in advance and stick to it. It'll save you from overspending—and avoid any awkwardness around the Christmas tree at the same time.
2) Lay off the plastic, unless…
The temptation to dump your whole Christmas on a credit card can be intense, but if you can avoid doing that you'll probably end up a lot better off. However, if you play the game well enough, there can be a plus side to whacking down the plastic once in a while. If you scout around for the best 0% interest deals on your cards, you can spread your Christmas shopping over a few months without racking up a load of plastic debt along the way. It takes a little legwork, but the pay-offs can be good. Just don't forget to clear your balance before the 0% deal expires and the interest starts piling up!
3) Check out the cashback sites
If you do most of your Christmas shopping online, then there's an interesting little wrinkle in the online sales landscape to look out for. A cashback site is a web page that will basically toss a little money your way when you pass through them on you way to your seller. You sign yourself up for a free account (and definitely avoid any that ask you for money up-front), then search the site for a seller you want to buy from. When you click through and make your purchases, the cashback site drops some credit into your account. The amounts are generally pretty small, but you're not buying anything you wouldn't have bought anyway and the benefits will stack up over time.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
CIS is a special set of tax rules for self-employed people in the building trade. Normally, when you file your own tax returns through Self Assessment, you get your pay with no tax deducted at source. As a construction subcontractor, however, the rules you follow are a little different. Under CIS, your contractor hacks off 20% of your pay before they fork it over.
CIS covers most kinds of building work done in the UK. Site preparation, construction and dismantling, repairs and decorations are all included in the scheme, for example. Even businesses based outside the UK get caught up in the CIS system, if they do work in the country. It makes no difference if you're a contractor, a subcontractor or both. You'll still need to deal with CIS from one side or the other.
It all boils down to HMRC getting bent out of shape in dealing with tax fraud in the building trade. Basically, they decided there was too much dodgy “cash in hand” nonsense going on in construction and clamped down on it hard. The way they went about it means that your contractor coughs up a chunk of tax to HMRC directly, taking it out of your pay. It's like making an advance payment against the tax you'll owe, designed to make it harder for subbies to wriggle out of paying up. It's not super-popular, obviously, and can leave you badly in the lurch if it goes sideways. Even so, the taxman reckons it's worth the hassle if it chokes off the tax evaders.
People in construction tend to throw these terms around a bit in general conversation, but the CIS system draws some pretty sharp lines between them:
A lot of the time, you can end up being both a contractor and a subbie at once. For instance, this can happen if a business is contracted to do some building work, but then pays someone else to do some of it. At that point, you're getting 20% of your pay sent to the taxman by your contractor, and also sending him 20% of your own subcontractors' cash. It can get messy at times, so you're probably best off getting some expert advice if you're not 100% sure where you stand.
If you're a construction contractor, you need to register for CIS. The same goes for subcontractors who work for themselves, have their own Limited Companies or are in a partnership or trust.
As for how you do it, step one is to jump on the HMRC website and sign up online. You'll need to have an account to sign into and your Unique Taxpayer Reference (UTR) number to hand. The actual forms you'll have to fill in depend on your business set-up (Sole Trader, Limited Company or whatever), but it should all be pretty straightforward. If you're new to the self-employment game and need to get set up, you can do that on the website as well. There's even a CIS helpline you can call if you need someone to walk you through it all.
Generally speaking, if you don't register for CIS when you're supposed to, you can expect to see a full 30% of your wages vanish into HMRC's pockets before you get them! There's a chance you might be able to apply for what they call “gross payment status”, but the rules are sticky so don't count on it. If you do qualify, then you won't lose any of your pay through CIS deductions, but you'll still have to pay tax normally through Self Assessment and/or or the Corporation Tax system.
Apart from the fact that you're paying tax on money you haven't been given yet, there are a few pitfalls and dangers lurking in the CIS system. For one thing, since you're paying tax from the very first penny you earn, there's a chance you might not be getting the full benefit of your tax-free Personal Allowance. That's one of the reasons why it's so important to get your Self Assessment tax returns right. There's a section in there to list all the CIS deductions you've had taken from your pay.
Beyond that, there's obviously the very big danger of failing to get registered for CIS on time – or at all. That can easily see you losing 30% of your pay instead of the normal 20%. It's an easier mistake to make than you'd think, too. A lot of people get into trouble each year because they don't properly understand their employment status, and there's some seriously bad advice floating around out there. You might also be getting bad information from somewhere on how much to claim when you sort out your CIS tax return, which can lead to major hassle from HMRC when they catch up to you - which they eventually will.
If you're on both sides of the fence as a contractor and subcontractor, working with CIS can be a strain on your cash flow. As we mentioned before, you'll be losing 20% of your pay – which is cash you probably need to pay your own subbies. Planning is the key here.
Finally, you've got to watch out for the double taxation trap. If you don't send in your Self Assessment tax return on time, you can end up getting an estimated tax bill from HMRC. With CIS muddying the waters, it's not hard to find yourself getting a bill from HMRC when you've already paid your deductions. It's not usually too difficult to set things straight by getting the taxman the information he needs, but it's definitely a nasty situation to be in while it lasts.
Yes, you can claim your tax rebate online by logging into the gov.uk site with your Government Gateway User ID and password. If you don’t already have one of these, you can set one up, which should only take a few minutes if you’ve got your National Insurance number and a recent payslip, a P60 or a valid UK passport to hand.
You’ll need to show HMRC some proof of all the work expenses you’re claiming a tax refund for. You’ll also need a few bits of crucial information, like details of the places you’ve worked in the years you’re claiming for. There are a lot of complicated rules about which kinds of expenses can earn you a tax refund, so talk to RIFT if you’re not 100% sure where you stand.
When you’re buying property, it’s not just your own money you’re risking. You’ve got to keep in mind that your mortgage lender will need to think of you as a safe bet. A clean credit history’s a great step in the right direction – and paying down your debts before you start saving seriously will actually make the road ahead a lot less rocky.
Speaking of keeping an eye on the future, don’t forget the extra costs you’ll be facing beyond your basic deposit and mortgage repayments. Solicitor fees, Stamp Duty and moving costs can all lump a lot of extra money onto your overall costs. Be sure to factor these into your budget so you don’t get tripped up later.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Most people never realise how much their old household appliances are costing them each year. Energy efficiency’s become a really big issue in recent times, and a typical home can be a minefield of “hidden costs” if you’ve got the wrong gear installed. Let’s take a look at some of the usual suspects, and what you can do to get them up to date.
It's a great excuse to modernise your kitchen:
The taxman likes to be kept up to date on any income you’re earning, but he’s not some crazed stalker prying into every aspect of your private life. Gifts from your parents or friends, student loans and grants don’t count as taxable income in HMRC’s eyes. The same goes for bursaries, scholarships and so on.
Yes. If you’re renting out a room while you’re studying, then the taxman will want his bite of it. As always, any Personal Allowance you’re entitled to applies. You’ll probably end up filing Self Assessment tax returns to account for the income. However, depending on what you’re renting out, you might be able to use the Rent a Room scheme. Under Rent a Room, you can earn up to £7,500 tax-free a year from renting out furnished accommodation in your main home. Rent a Room is simpler for most people than working out their expenses in their tax returns. As long as you qualify for it, it can be a decent way to score some extra income.
Apprenticeships are a lot like training contracts, in that you’re working primarily to learn a trade or set of skills. However, apprenticeships are paid positions. That means you’ll be taxed through the PAYE system. Depending on how long your apprenticeship lasts, you might find yourself claiming back some PAYE tax from HMRC (if it’s less than a full year, for instance). Also, unless your employer’s paying or reimbursing all your expenses (travel to temporary workplaces, tool/equipment repair, and so on), you might be owed some tax back for those, too.
If your student job’s the first toe you’ve dipped into the taxman’s world, there’s a potentially nasty trap you need to watch out for. If HMRC doesn’t have enough information to issue you a PAYE tax code, your employer might lump you with an emergency one. In practice, it’s not really as bad as it sounds. It just means you’ll only be entitled to your basic Personal Allowance. For most people, that’s all they’d probably get anyway. However, an emergency code is bad news if you ought to be getting any allowances or tax reliefs - like the Blind Person’s Allowance, just to pick an example.
Tax breaks are another term for tax relief. HMRC has various systems in place to help people and businesses bring down the tax they're paying under certain circumstances. For example, when you're reaching into your own pocket for things like travel to temporary workplaces, you can claim back some tax on your mileage expenses. Everything from individuals washing their work uniforms to businesses conducting cutting-edge R&D can qualify for some kind of tax relief. The key to getting the best from these systems is to know exactly what you qualify for, and how to claim it back.
If you're self-employed and paid through the Construction Industry Scheme (CIS), you're probably due a tax refund.
You can also claim back a range of job-related expenses, including travel, meals, lodging, parking, tolls, tools, protective clothing, public liability insurance, phone bills, postage and stationery.
We’ll assess all your expenses and include them if they qualify. That way you'll be certain that everything on your claim is a genuinely allowable expense and you won't find HMRC knocking on your door asking for their money back. If you're a RIFT customer, you'll be covered by our RIFT Guarantee as well, so you've got even more peace of mind.
Sadly there are a number of unscrupulous tax refund advisors taking advantage of CIS workers at the moment.
If you want to see how much you could be due back from HMRC use our Tax Calculator and find out in seconds.
Yes it does. All self-employed people, including CIS workers, have to complete a tax return every year. The tax year ends on 5th April and you’ve got until 31st January the following year to send your tax return to HMRC.
Read more about Tax and the Construction Industry Scheme
At RIFT we complete your tax return for you, and claim your tax refund at the same time. Just tell us where you’ve worked, and when, and we’ll work out the cost of your travel. We’ll add any other job-related expenses you may have and fill in the tax forms for you, all you need to do is sign them.
We’ll send the forms to HMRC, handle any questions on your behalf and chase them if they don’t pay out in the agreed timescale – it’s all part of our service.
95% of our CIS customers get a tax refund, and the average value of the refunds is £2000 per year.
Use our tax calculator to find out how much you could have waiting for you at HMRC.
Yes you can! The Self Assessment system is all about settling up fairly with the taxman. Any money you received from The Self Employment Income Support Scheme will be treated as taxable income on your Self-Assessment. Whether or not you get a government loan to see you through the COVID-19 outbreak, you’re still owed the rules covering CIS tax refunds are the same as before. Paying tax under the Construction Industry Scheme can mean you’re not getting the full benefit of your tax-free Personal Allowance so you should always make your claim.
The Self-Employment Income Support Scheme (SEISS) is designed to help self-employed people get through the COVID-19 crisis. The 5th grant changed the playing field slightly for businesses hit by the COVID-19 pandemic. This grant covered the period from the start of May 2021 to the end of September 2021. If you qualified for a previous grant and your business was still suffering because of the pandemic, you should have been able to make a claim.
For the 5th grant, what you received depended on how badly your turnover had been damaged:
Because the grant amount was based on your turnover, you obviously needed some figures to show HMRC. The first thing you needed was your turnover total from either the 2018/19 or 2019/20 tax year. You should have easily been able to find this in your Self Assessment tax returns.
The other thing you need was your turnover from the 2020/21 tax year to compare. Again, your Self Assessment tax return’s ideal for this. If you haven’t already talked to RIFT about submitting your 2020/21 return, time’s running out. The official Self Assessment deadline isn’t until the 31st of January. However, if you’re going to use your tax return to show your turnover for 2020/21, you’ll have needed to have it squared away before the SEISS claim deadline of the 30th of September 2021.
CIS tax rebates generally take about 4-10 weeks for HMRC to process. RIFT’s CIS refund service includes handling your Self Assessment CIS tax return and full aftercare throughout the year, with no hidden fees. With RIFT, you get the very best from your claim, as fast as possible and with no expensive hourly rates to cough up. One simple fee takes care of everything.
HMRC’s not known for its blistering speed, but there are a few things you can do to keep the wheels turning on your claim:
RIFT’s expert teams will make sure there's no hold-up at HMRC. That means no endless waits on HMRC helplines and no dangerous mistakes creeping into your claim. We'll even chase up old employers if they're dragging their feet in sending the information we need. Once you’re happy with the amount we’ve calculated for your rebate, we’ll chase up HMRC until it’s paid out in full. Meanwhile, we take expert care of you all year round, and we’re never more than an email or phone call away. As always, everything's covered by our RIFT Guarantee. As long as you've given us complete and accurate information, your rebate is protected.
When you file your own Self Assessment tax returns, it's easy to miss out on CIS claims or make costly mistakes. Under the CIS scheme, your employer takes tax directly from your pay before you get it. This almost always means you're instantly losing 20% to the taxman. As a result, you’ll probably find you’ve been overcharged by HMRC when you file your Self Assessment tax return.
It takes specialist understanding to claim tax back for CIS construction workers. Every year, far too many people are still shelling out tax they don't owe. In the worst-case scenario, they don’t get any CIS tax rebate at all. Even if they do, it’s often nowhere near as much as they deserve.
Yes! All self-employed people, including CIS workers, have to complete a yearly Self Assessment return. The tax year runs until on 5th April, then you've got until the following 31st of January to complete and file your tax return.
With RIFT, filing and completing your CIS tax return is all part of our tax rebate service. Armed with a list of your workplaces for the year and a few more details, we'll work out the cost of your travel and what you’re owed for it. Next, we'll add any other essential expenses you’ve had and sort out your paperwork.
We'll send the forms to HMRC, handle any questions on your behalf and keep chasing the taxman until your rebate’s paid. 95% of our CIS customers get a tax refund, with an average value of over £2,245 per year.
The taxman really doesn’t like waiting. Miss the filing or payment deadline by a single day and you'll get an immediate £100 penalty. At 2 months late, that fine doubles. At 6 and 12 months late, it reaches £300 (or 5% of the CIS deductions on the return, if that's higher). Any longer and you might face an additional penalty of £3,000, or 100% of the CIS deductions on the return.
Of course, with RIFT on your team, you’ve got nothing to worry about. We’ll keep you in the taxman's good books and make sure you never miss out on your CIS tax claims - even the ones you didn’t know you qualified for!
You’ll need a few bits of information about yourself to register for the Construction Industry Scheme:
The CIS scheme covers most of the construction work done in the UK. If you’re self-employed in the building trade, you’ll almost certainly have to register for it. Contractors will need to verify their subcontractors, handle their CIS deductions and file monthly CIS returns.
If you’re a subcontractor and don’t sign up for CIS, it doesn’t mean you won’t have the deductions taken from your pay. In fact, you’ll probably actually lose even more of your money, since the rate goes up to 30% for people who aren’t CIS-registered. It’s possible that you qualify for “gross payment” status, where you don’t have to pay CIS deductions. Don’t count on that, though, as there are specific rules and conditions to meet.
One of the problems with CIS is that it's very easy to end up paying too much - and you won't get an automatic refund. To claim your CIS rebate, HMRC demands proof of what you’re owed. This is what RIFT Tax Refunds is all about, so get in touch to see how we can help.
Remember that CIS covers all UK construction work, even if it's done by foreign firms. There are penalties for filing late, so you have to stay on top of the paperwork.
When you register with the Construction Industry Scheme, you get a card. The kind you’re given depends on your situation:
For most general contractors in the UK building trade, the CIS scheme's compulsory. It includes everything from site preparation and repairs to decoration and demolition. There are a few exceptions, though. For instance, if you’re a contractor who only deals with very limited sections of the work (like carpet fitting), you may not have to register.
CIS covers all construction work done in the UK, even when it's done by foreign firms. The registration system is a little different, but all the basic rules are the same. The UK has some ''double taxation'' agreements in place with various other countries to reduce your total tax when you're paying in both countries. Talk to RIFT if you need help working out what it all means for you.
The standard Construction Industry Scheme tax deduction is 20%. If that sounds like HMRC's taking a huge lump out of your pay, then it only gets worse if you don’t sign up to the scheme. If you haven’t registered, the rate shoots up to 30%! This can also happen if you don't give your employer your Unique Taxpayer Reference number (UTR). Your UTR is used by HMRC to identify you. If your employers don't have it, the taxman might assume you aren't registered for CIS and charge you the higher rate.
CIS tax deductions are payments your employer takes out of your wages before you get them. Those payments go straight to HMRC instead of you. They're supposed count as advance payments toward your tax and National Insurance, clamping down on tax evasion in the industry. Unfortunately, one of the side-effects of CIS is that a lot of honest people end up being charged too much tax. At RIFT, our friendly teams of CIS experts can quickly tell you if you're due a tax rebate, then make sure you get it.
A Construction Industry Scheme Payment and Deduction statement is a record of the money you've been paid and taxed on if you work under the CIS scheme. You might also just call them wage slips, payslips or something similar.
If you're self-employed in construction, they're some of the most important documents you'll ever have. When you file your yearly CIS tax return, you'll need these statements to prove what you've earned and paid. You should get a CIS Payment and Deduction statement from your boss whenever you’re paid, within 14 days of the end of the tax month.
The main thing you'll need your CIS certificates or wage slips for is filing your yearly Self Assessment tax returns. The taxman will expect you to show him a record of all the cash you’ve got coming in. With the CIS taking 20% of your pay before you get it, you’re probably not getting the full benefit of your tax-free Personal Allowance. You’ll be hard-pressed to prove that without your CIS paperwork to back up your claim, though.
Employment status is a huge issue in construction, and it can get very complicated with so many layers of contractors, subcontractors, agencies and so on. You might think you’re working under exactly the same conditions as your PAYE workmates, but the taxman could well take a different view.
The first thing to do is check your payslips. If they say “CIS statement” and show 20% deductions being made, then you’re being taxed through CIS. If that seems wrong, you need to talk to your employer fast.
The CIS scheme is only for construction, and its rules can catch out even experienced self-employed people from other industries. If you’ve got self-employed mates from outside of construction, be careful taking Self Assessment advice from them. They might not know the territory as well as they think they do. Play it safe and talk to the experts at RIFT instead.
In construction, a contractor is a person or business supplying materials or labour for a job. On the other hand, a subcontractor is anyone who does construction work for a contractor. Basically, according to HMRC, you're a contractor if you pay subcontractors for construction work.
You can also count as a construction contractor if your business doesn't do construction work, but still spends an average of over £1m a year on construction in any 3-year period. Either way, you’ll need to register for CIS and start taking deductions from your subcontractors’ pay.
Start My ClaimAs a contractor, you need to register for CIS before you even take on your first subcontractor. You're going to have a lot of responsibilities under the scheme, so get used to minding the details. Here's what you need to do:
Subcontractor tax refunds can be tricky. It’s easy to miss out on money you’re owed - or even get put off from claiming altogether. Even pricey accountants can find themselves tangled up in the system if they don't know the construction industry well. RIFT Tax Refunds has been specialising in construction rebates since 1999. There really are no safer hands to be in.
Gross payment status means that no CIS deductions get taken out of your pay. There are 3 basic tests to see if you qualify:
Yes, you will pay tax “at source” (your tax is taken off your wages before you get them), most likely at the rate of 20% of your income.
However, this doesn’t mean you are “employed”. You still count self-employed under CIS – even if it doesn’t feel like it. The big difference is that this means you'll still have to do Self Assessment each year. Not filing those tax returns each year brings three very serious problems your way:
If you're getting CIS statements and don't understand why, get in touch with RIFT straight away. We can explain the system, make sure you aren't paying too much tax and keep you out of trouble with HMRC.
There are strict rules for CIS contractors about payment and deduction statements. They need to send you one every time you're paid, with specific deadlines to hit.
If you haven't been receiving yours, don't panic. It may just be a simple admin mix-up. Get in touch with your contractor and ask for your certificates, so you can keep your Self Assessment records up-to-date.
Don't just ignore the problem. If it turns out your contractor's not been doing things correctly with HMRC, things could get awkward for you in a hurry, come the end of the tax year. If you still have no luck, come to RIFT for advice and help. We're experts in sorting out tax problems for UK construction, and we'll get straight to work.
If you're self-employed in any kind of business, you'll almost certainly be using Self Assessment to pay your tax. In the construction industry, you'll probably also have to deal with the Construction Industry Scheme (CIS). Subcontracting under CIS means your Self Assessment filing has a couple of extra points to consider. If you don't understand the system, it's easy to end up paying a lot of extra tax you don't owe. If you think you are due a tax rebate check out our CIS tax refund pages.
Self-employed CIS workers can sometimes pass work on to other people. However, there are strict rules about doing this, and breaking them can lead to serious trouble. HMRC has a real problem with people in CIS work paying cash-in-hand for others to do jobs for them. It doesn't matter if you're passing the work on to friends, colleagues or family. You still have to follow the rules.
The first thing to know is that passing your CIS work on makes you a contractor in HMRC's eyes. That means you have to register yourself to avoid serious trouble from the taxman. You can't just slip someone a fistful of banknotes on the sly and sort things out later. You need get yourself registered before you take on your first subcontractor.
After that, you need to be sure your subcontractors are signed up for CIS. When you pay your subcontractors, you have to take CIS deductions from their pay and send them to the taxman. You'll also need to file returns every month and keep detailed CIS records. If you slip up, or ignore the regulations altogether, you're looking at some painful penalties.
As long as you're following the rules, then the cash you're paying the people you give the work to counts as an expense. That means it will bring down the amount of profit you're paying tax on. If RIFT is handling your tax returns, of course, we'll handle all of this for you as part of the service.
If you've been passing some of your CIS work on, then you need to have good records to show the taxman. HMRC will expect to see detailed evidence of the wages you've paid out, for instance. In addition, they'll also want to see the details of the people doing the work for you. Names, addresses and their Unique Taxpayer Reference numbers will all be needed. Again, RIFT will handle all the sticky HMRC business for you to keep you within the regulations and out of trouble.
RIFT was first founded to help construction workers tackle the taxman. We've grown a lot since then, but we always remember where we started. We're still the leading experts on taking care of the UK's construction industry. We're on great terms with HMRC, and know the business inside and out. Whatever tax problems or questions you've got, talk to RIFT.
The Self-Employment Income Support Scheme (SEISS) is designed to help self-employed people get through the COVID-19 crisis. With the 4th round of SEISS grants, the rules on who qualifies were loosened up slightly. You should be okay to claim if:
The 4th SEISS grant pays out 80% of your average profits over 3 months, capped at £7,500, worked out using your last 3 years of profits. If you became self-employed more recently than that, only your time in self-employment will be used to make the calculations.
A final SEISS grant is coming later in the 2021, to be claimed from around the end of July. Only people who’ve seen a 30% drop in their average turnover will get the full 80% pay-out (capped at £7,500) this time. If your turnover’s dropped by less, you’ll get a 30% grant level instead, capped at £2,850.
If you’re eligible for a SEISS grant, you should be contacted by HMRC with instructions and a personal claim date. See our FAQ here for more about the scheme.
With consumer credit, we’re talking about the kind of thing you’re most likely to run into on the average high street. This is where the customer is allowed to delay the cost until a later date for any goods, services or even money they’re given now. There’s typically some kind of charge for this.
Consumer credit deals are the kind of thing you tend to see with ‘hire purchase’ agreements, vehicle finance, credit insurance or personal loans. The consumer can be offered the deal based on how ‘credit-worthy’ they are – basically just meaning how likely the business thinks they are to be able to afford the repayments. The rules are usually pretty much standardised for those who qualify. A fairly typical example of a consumer credit deal is an ‘equated monthly instalment’ agreement, where you pay back a set monthly amount to cover the overall cost (plus interest). Another common example is an overdraft facility on a bank account.
All of this can leave people who are dealing with mental health and money issues isolated and suffering alone. They feel guilty buying the things they can actually afford, and depressed about the things they can’t. At the same time, those feelings can stop them from asking for help, support or even advice.
That last point’s one of the most important. It can be incredibly hard to start conversations about money and mental health, whether you’re suffering yourself or seeing the signs in someone else. The critical thing to understand is that it’s not a failure to ask for help or accept the support that’s offered. Everyone has a right to have their essential needs met – and there are resources out there dedicated to making sure that right is respected.
The longer you leave it before speaking up, the more of a habit it becomes to try and “tough it out”. Just like financial trouble, not every mental health problem comes at you in a big rush. Sometimes, it’s the slow build-up of pressure that weighs you down most over time, particularly if it’s not just yourself you’re looking after.
Buying a house comes with a hefty stack of paperwork attached, and dealing with that paperwork costs money. What we call ‘conveyancing’ covers a lot of these fees, which you’ll run into at pretty much every stage of the purchase process. All told, your conveyancing costs (including solicitor’s legal fees, exchanging contracts, etc.) will tend to average out at around £1,040 if you’re a buyer and £1,000 if you’re a seller. Those numbers are based on a typical freehold property price of £277,000.
Looking to add some visual flair to your vehicle? Here are a few good options:
The exploding cost of energy’s sent a shockwave through basically all of our family finances. On average, UK households are burning through an incredible £2,500 per year on gas and electricity – essential utilities we really can’t go without.
The November 2022 Autumn Statement announced that the Energy Price Guarantee would be kept in place for another year after April 2023, but would be a little less generous going forward. The cap originally aimed to limit average energy bills across the UK to £2,500 per year. However, after April 2023, typical household bills will be capped at £3,000 instead, which is going to be a painful blow to many families.
When you’re managing your energy use, it’s important to realise that a few small changes you can reliably stick to are usually worth more in the long run than a single big one that you can’t. For example, even clicking your main thermostat down by a single degree can save you anything from £55 to £90+ over the course of a year, depending on the size of your home. The odds are, you won’t even feel the difference in temperature day by day, but you’ll be taking some real heat off your wallet.
There are lots of small changes you can make around you home to bring down your energy bills, and most of them are so simple you’ll barely even notice them. However, they’ll all combine into some serious savings over time. Check out our guides below for more on how to keep your energy spending under control.
Food bills are another everyday cost where small changes can add up to big savings over time. On average in the UK, households are splashing out £3,312 on groceries alone each year. That doesn’t even include the food we buy from takeaways or eat in restaurants, either. Add those in and the figure leaps up to over £5,000!
Bringing down your yearly food costs doesn’t actually have to mean buying less food – although if you find yourself throwing away a lot of out-of-date food waste each week you could probably do yourself a favour by not buying things your family won’t get round to eating. The real trick to trimming the fat off your supermarket bills, though, is to make full use of the range of retailers and discount schemes on offer. Aldi, for instance, prides itself on keeping its prices super-competitive by staying efficient and stocking a lot of own-brand goods. In fact, about 90% of what Aldi sells is “private brand”, cutting down on their costs and passing some of what they’re saving on to their customers.
Another thing to look into is whether your favourite supermarket has a loyalty card scheme running. Tesco’s Clubcard can be great for bagging a few bargains, for instance. Just be sure that those “unmissable” deals aren’t convincing you to buy things you don’t actually need. Even small discounts can be valuable if they’re on things you have to buy regularly.
Now we come to those little extras we all love. We’ve already seen how a typical British family munches through an average of over £1,700 of takeaways and restaurant meals per year. There’s absolutely nothing wrong with treating yourself and your loved ones once in a while, but if the cost’s becoming a problem, you can still get the full experience by cooking “fakeaway” classics using free recipes from the web. It’s easier than you’d think, and can even be more fun if you get the whole family involved.
About half of UK households have been deliberately cutting back in their non-essential travel recently, and it’s easy to see why. Travel costs can pump your yearly expenses up by a lot, particularly if you’re driving or using public transport for your work. As fuel and ticket prices continue to rise, every mile matters even more.
If you’re not using your own wheels for your essential journeys, always check out the kinds of discounts your journey qualifies for. It’s true, the choice can be a bit baffling if you’re not used to sorting through your options. There are 9 different types of railcard alone to pick from, depending on the travel you’re doing. Once you’ve got it figured out, though, you could be looking at a discount of at least a third on your overall costs.
If you’re a London traveller and use public transport a lot, make sure you grab yourself an Oyster card. The great thing about these is they set a hard cap on how much you’ll have to spend on any given day. You can use them on the London Underground, the buses and most of the national rail services in London. About the only thing to watch out for is whether you’re actually saving money compared to your other transport options. Even with the various discounts you can get, you might still end up paying more than if you’d used your own transport. Obviously, your best option will depend on where your travel takes you. Petrol alone is costing the average UK driver over £1,400 a year, so make sure you cost out your various options before making a decision. A little legwork up-front could pay off in a big way over time.
As the cost of living goes up, it’s no big surprise to find so many of us struggling to stay out of debt. If you haven’t been managing your household budget carefully enough, just one unexpected cost or financial setback can leave you needing an emergency cash boost that could end up making things even worse. Over 1 in 4 people surveyed in the UK say they’re now having to lean more heavily into loans or expensive credit card deals to cover their day-to-day costs than they did a year back.
When you’re stacking up debts, every other money decision you make gets more difficult. Even if you’re able to save a little cash regularly, the interest on your debts will almost always pile up faster and higher than it will on what you’ve put away. This makes you poorer over time in real terms, even if you’re making a real effort to save. That’s why, wherever possible, it’s a smarter move to pay down what you owe before you try to stock up any savings. At the very least, you want to be able to cover the minimum payment amounts on your debts each month so they don’t get out of control. Not only will this help keep your overall finances more healthy, but it’ll also protect your credit score if you need to borrow in the future. Over 2 million people are currently finding themselves falling behind on at least one crucial payment each month. We’re talking about the really important bills here, like rent, mortgage repayments or high-interest credit card balances. These are the kinds of things that can damage your credit score as well as your bank balance, so it’s incredibly important to stay on top of them.
One thing that really does work is learning how to set up, and stick to, a household budget. Basically, all you have to do is work out exactly how much cash you have reliably coming in each month, and then divide it up to cover your costs.
Those costs get sorted out into categories, with a set percentage of your income going into each, like this:
For pretty obvious reasons, this is called a “50/30/20” budget, and it’s a system we’ve talked about before in some of our other guides. If you’re new to setting up budgets, it’s a great place to start. We’ve even got a free tool you can use.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
All households with a domestic electricity connection in England, Scotland and Wales qualify for a discount on their energy bills. It’s a £400 non-repayable discount to help out over the winter.
The payment is automatic. So, if you get an email or message that looks official asking for your bank details – don’t reply! It’s a scam.
And you’ll still get the discount if:
You don't need to do anything. Your discount will be applied to your household electricity bills, starting in October 2022, for 6 months. So you’ll get £66 off in October and November, and £67 off in December, January, February and March.
The discount is applied monthly, even if you pay quarterly or use a payment card. Direct debit customers will get a reduced direct debit OR a refund if the direct debit has already been collected.
If you pay by standard credit or payment card, your discount will be credited to your account the first week of the month.
Smart prepayment meter customers will get a credit to their meter the first week of each month.
Traditional prepayment meter customers may get an automatic credit when they top up, or vouchers by email, SMS text or post.
Your supplier should be in touch with more information before the scheme starts.
Useful to know...
Anyone struggling with energy bills should know that suppliers MUST offer payment plans that people can afford. Contact your supplier to find out more. Also, if you have a prepayment meter and are unable to top up, you can ask for emergency credit.
The Household Support Scheme has been extended and will run until March 2023.
This big pot of money has been distributed to councils across the UK who decide how much each eligible person can get. Eligible people are residents who are most in need of financial help to cover the rising cost of things like food and energy.
£200 is the reported amount however the actual calculation may vary depending on your circumstances.
Find your local council website here by entering your postcode. Then search your council’s website for ‘Household Support Fund’. This will tell you how funds are allocated and help you decide if you are eligible.
Citizens Advice provides free help to people in need. The organisation can help you find grants or benefits, or advise on rent, debt and budgeting.
More than 8 million households across the UK are receiving a payment of £650 in two instalments.
If you get Universal Credit, Tax Credits, Pension Credit or legacy benefits, you are eligible for the payment. And you should receive it automatically.
The Department for Work and Pensions (DWP) will pay the money straight into your bank account. The first payment went out in July and the second in the autumn.
If you haven’t received a payment and think you qualify, you can find out more here. Or call HMRC on 0345 300 3900.
Around 8 million pensioner households will also get an additional £300 – paid out with their Winter Fuel Payment (WFP) in November or December. You don’t need to do anything. If you’re over state pension age of 66 in the qualifying week (19th-25th September 2022) and in receipt of the WFP, you should receive the payment automatically.
If an older person relies on you to help manage their personal finances, you can reassure them the payment is coming. Also make sure to tell them not to respond to any official-looking emails or text messages asking for their bank details.
The government has said that no one will be asked for their bank details and its important to remember that scammers will use any opportunity to strike. Vulnerable older people are particularly at risk so it’s vital to stay vigilant.
Do you work from home?
If you work from home for all or part of the week, you may be able to claim tax relief on additional household costs. You can only claim tax relief if your job requires you to live far away from your office or your employer does not have an office. You can’t claim tax relief if you have chosen to work from home.
Do you pay for uniform, work clothing or tools?
You may be able to claim tax relief on the cost of repairing or replacing small tools you need for your job, or repairing or replacing specialist clothing (a uniform or safety boots, for example).
Do you drive your own vehicle for work?
If you use a car, van, motorcycle or bicycle for work, you might be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running your own vehicle.
How much you can claim depends on whether you’re using your own vehicle or your employer’s. You can’t claim for travel to and from work – unless it is a temporary place of work.
Do you pay professional fees and subscriptions?
If you must pay membership fees to be able to do your job, or pay annual subscriptions to approved professional bodies or societies, you can claim tax relief on these. You can’t claim tax relief on fees or subscriptions your employer has paid or to organisations that are not HMRC approved.
Professional fees & subscriptions tax relief
Do you pay travel and overnight expenses?
If you have to travel for work (not to work) you might be able to claim tax relief on things like food or overnight expenses, hotel accommodation or public transport, congestion charges and tolls, parking fees, business phone calls and printing costs.
Have you bought other equipment?
You can claim tax relief on the full cost of substantial equipment you need to do your job. A computer or laptop, for example. These things qualify for a type of allowance called an annual investment allowance.
The first thing to understand about healthcare tax refunds is that not every mile you travel or pound you spend will count toward your claim. A daily commute to a permanent workplace, for example, won’t earn you any tax relief. To qualify for a refund, your work travel needs to be to and from what HMRC calls “temporary workplaces”. In practice, this generally means anywhere you work for less than 24 months. So, for example, a nursing job that requires you to travel out to patients’ homes could end up making you eligible for a pretty decent tax refund. Meanwhile, travel expenses can also include some subsistence costs while you're on the move. Things like accommodation and food can all contribute toward your claim.
There are also a few tricky points to consider. If you're travelling to a number of hospitals or clinics within the same general area, with your mileage and travel times not changing much, HMRC might consider the entire region your “permanent workplace”. It's always best to get professional advice in situations like these.
Rotational contracts, where you're working full-time at a series of hospitals over a period of years usually won't qualify. However, if your training takes place under, for example, a single 5-year contract, then things changes. In that case, each hospital you work at will count as temporary because it's a single employment with multiple temporary workplaces. The regulations are easy to trip over here, so it's often a good idea to get professional help.
If you're already getting some of your costs reimbursed by your employer, you may still be owed tax back. HMRC has set rates for Approved Mileage Allowance Payments (AMAP), and if you're not getting the full amount you can claim back the difference. The NHS has its own rates as well, if you're employed by them.
Beyond travel, there are several more ways a job in healthcare can cost you money. If you’re paying out of your own pocket for repair, replacement or even laundry of your work uniform, for instance, you could make a claim for those costs. The same goes for union dues and professional body fees to organisations like the Nursing and Midwifery Council.
The key points to remember are that the costs you’re claiming tax relief for need to be essential to your work, and you need to be paying them yourself. In addition, to get back everything you’re owed you’ll need to show proof of what you’re spending. That means records and receipts – although the simplified Flat Rate Expenses system can offer an easier way if you don’t mind sticking to HMRC’s figures.
If you find yourself buying things like laptops or office equipment for work use, you might have a claim under HMRC’s capital allowances system. This is generally for items that you’ll be using for a couple of years or more – and again, you’ll need to be footing the bill yourself for them to qualify for tax relief.
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
North East | NE | £1,563,741,000 | £102,823,000 | 7.0%
Durham | NE | £331,812,000 | £33,270,000 | 11.1%
Northumberland | NE | £234,062,000 | £14,607,000 | 6.7%
Newcastle upon Tyne | NE | £147,544,000 | £9,051,000 | 6.5%
Sunderland | NE | £131,683,000 | £8,754,000 | 7.1%
North Tyneside | NE | £123,451,000 | £5,878,000 | 5.0%
Stockton-on-Tees | NE | £122,418,000 | £6,867,000 | 5.9%
Gateshead | NE | £112,816,000 | £3,977,000 | 3.7%
Redcar & Cleveland | NE | £82,730,000 | £3,098,000 | 3.9%
South Tyneside | NE | £77,294,000 | £4,405,000 | 6.0%
Middlesbrough | NE | £75,880,000 | £5,102,000 | 7.2%
Darlington | NE | £69,986,000 | £4,199,000 | 6.4%
Hartlepool | NE | £54,065,000 | £3,615,000 | 7.2%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
North West | NW | £4,425,938,000 | £241,981,000 | 5.8%
Cheshire East | NW | £311,868,000 | £12,117,000 | 4.0%
Cheshire West and Chester | NW | £259,808,000 | £12,325,000 | 5.0%
Liverpool | NW | £241,128,000 | £20,359,000 | 9.2%
Manchester | NW | £235,228,000 | £18,078,000 | 8.3%
Stockport | NW | £208,598,000 | £9,410,000 | 4.7%
Wirral | NW | £195,815,000 | £7,764,000 | 4.1%
Sefton | NW | £181,909,000 | £8,306,000 | 4.8%
Wigan | NW | £164,600,000 | £13,419,000 | 8.9%
Salford | NW | £153,869,000 | £12,525,000 | 8.9%
Bolton | NW | £152,991,000 | £9,010,000 | 6.3%
Trafford | NW | £139,577,000 | £7,344,000 | 5.6%
Warrington | NW | £137,182,000 | £6,472,000 | 5.0%
Tameside | NW | £125,931,000 | £6,393,000 | 5.3%
Oldham | NW | £121,575,000 | £6,351,000 | 5.5%
Rochdale | NW | £118,760,000 | £5,743,000 | 5.1%
Bury | NW | £117,378,000 | £5,465,000 | 4.9%
St Helens | NW | £104,424,000 | £4,630,000 | 4.6%
South Lakeland | NW | £95,173,000 | £2,978,000 | 3.2%
Preston | NW | £87,557,000 | £6,923,000 | 8.6%
Lancaster | NW | £86,973,000 | £5,202,000 | 6.4%
Wyre | NW | £81,051,000 | £4,116,000 | 5.3%
Chorley | NW | £78,342,000 | £4,211,000 | 5.7%
Blackpool | NW | £78,115,000 | £6,145,000 | 8.5%
West Lancashire | NW | £76,724,000 | £5,700,000 | 8.0%
South Ribble | NW | £76,615,000 | £4,346,000 | 6.0%
Knowsley | NW | £75,220,000 | £5,013,000 | 7.1%
Blackburn with Darwen | NW | £74,232,000 | £4,830,000 | 7.0%
Carlisle | NW | £71,951,000 | £2,649,000 | 3.8%
Halton | NW | £69,642,000 | £2,147,000 | 3.2%
Fylde | NW | £66,260,000 | £3,981,000 | 6.4%
Allerdale | NW | £64,957,000 | £2,353,000 | 3.8%
Pendle | NW | £55,429,000 | £2,412,000 | 4.5%
Ribble Valley | NW | £50,350,000 | £2,519,000 | 5.3%
Burnley | NW | £49,929,000 | £2,448,000 | 5.2%
Hyndburn | NW | £44,674,000 | £1,710,000 | 4.0%
Rossendale | NW | £44,165,000 | £2,183,000 | 5.2%
Copeland | NW | £43,584,000 | £1,644,000 | 3.9%
Eden | NW | £43,468,000 | £1,448,000 | 3.4%
Barrow-in-Furness | NW | £40,886,000 | £1,312,000 | 3.3%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
Yorkshire and the Humber | YH | £3,180,396,000 | £152,338,000 | 5.0%
Leeds | YH | £433,854,000 | £22,147,000 | 5.4%
Sheffield | YH | £297,955,000 | £15,511,000 | 5.5%
Bradford | YH | £264,461,000 | £10,931,000 | 4.3%
East Riding of Yorkshire | YH | £248,126,000 | £15,039,000 | 6.5%
Kirklees | YH | £238,666,000 | £9,405,000 | 4.1%
Wakefield | YH | £194,845,000 | £11,345,000 | 6.2%
Doncaster | YH | £153,988,000 | £8,379,000 | 5.8%
Rotherham | YH | £147,804,000 | £5,696,000 | 4.0%
Harrogate | YH | £137,958,000 | £7,221,000 | 5.5%
Barnsley | YH | £132,483,000 | £7,902,000 | 6.3%
York | YH | £127,834,000 | £5,909,000 | 4.8%
Calderdale | YH | £122,350,000 | £3,411,000 | 2.9%
Kingston upon Hull | YH | £119,815,000 | £4,394,000 | 3.8%
North Lincolnshire | YH | £99,722,000 | £3,419,000 | 3.6%
North East Lincolnshire | YH | £93,334,000 | £3,089,000 | 3.4%
Scarborough | YH | £84,679,000 | £4,479,000 | 5.6%
Hambleton | YH | £76,646,000 | £3,874,000 | 5.3%
Selby | YH | £68,511,000 | £2,853,000 | 4.3%
Craven | YH | £49,080,000 | £3,305,000 | 7.2%
Ryedale | YH | £47,042,000 | £2,356,000 | 5.3%
Richmondshire | YH | £41,243,000 | £1,673,000 | 4.2%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
West Midlands | WM | £3,410,079,000 | £159,844,000 | 4.9%
Birmingham | WM | £449,767,000 | £16,990,000 | 3.9%
Shropshire | WM | £233,000,000 | £11,623,000 | 5.3%
Coventry | WM | £181,836,000 | £10,228,000 | 6.0%
Dudley | WM | £165,453,000 | £9,760,000 | 6.3%
Walsall | WM | £154,444,000 | £6,270,000 | 4.2%
Herefordshire | WM | £149,003,000 | £5,446,000 | 3.8%
Solihull | WM | £140,819,000 | £7,395,000 | 5.5%
Sandwell | WM | £139,707,000 | £12,795,000 | 10.1%
Wolverhampton | WM | £135,070,000 | £8,522,000 | 6.7%
Stratford-on-Avon | WM | £122,289,000 | £7,062,000 | 6.1%
Stoke-on-Trent | WM | £119,263,000 | £5,878,000 | 5.2%
Warwick | WM | £117,282,000 | £5,966,000 | 5.4%
Telford & Wrekin | WM | £103,417,000 | £4,434,000 | 4.5%
Wychavon | WM | £98,673,000 | £2,514,000 | 2.6%
Stafford | WM | £93,386,000 | £3,183,000 | 3.5%
Nuneaton & Bedworth | WM | £82,965,000 | £3,786,000 | 4.8%
Rugby | WM | £81,847,000 | £3,961,000 | 5.1%
East Staffordshire | WM | £78,565,000 | £4,659,000 | 6.3%
Lichfield | WM | £78,378,000 | £3,388,000 | 4.5%
South Staffordshire | WM | £76,557,000 | £3,540,000 | 4.8%
Bromsgrove | WM | £75,495,000 | £3,401,000 | 4.7%
Newcastle-under-Lyme | WM | £73,540,000 | £2,989,000 | 4.2%
Wyre Forest | WM | £68,296,000 | £2,990,000 | 4.6%
Staffordshire Moorlands | WM | £66,014,000 | £1,729,000 | 2.7%
Malvern Hills | WM | £62,389,000 | £1,666,000 | 2.7%
Worcester | WM | £61,302,000 | £1,113,000 | 1.8%
Cannock Chase | WM | £58,656,000 | £2,282,000 | 4.0%
Redditch | WM | £52,587,000 | £2,188,000 | 4.3%
North Warwickshire | WM | £45,586,000 | £2,200,000 | 5.1%
Tamworth | WM | £44,493,000 | £1,886,000 | 4.4%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
East Midlands | EM | £3,049,500,000 | £150,425,000 | 5.2%
West Northamptonshire | EM | £289,141,000 | £14,760,000 | 5.4%
North Northamptonshire | EM | £226,861,000 | £10,005,000 | 4.6%
Leicester | EM | £159,025,000 | £8,441,000 | 5.6%
Nottingham | EM | £156,955,000 | £6,503,000 | 4.3%
Derby | EM | £133,076,000 | £5,462,000 | 4.3%
Charnwood | EM | £117,407,000 | £4,340,000 | 3.8%
Rushcliffe | EM | £99,637,000 | £5,602,000 | 6.0%
South Kesteven | EM | £93,292,000 | £8,544,000 | 10.1%
Newark & Sherwood | EM | £91,616,000 | £4,006,000 | 4.6%
East Lindsey | EM | £89,018,000 | £5,209,000 | 6.2%
Gedling | EM | £82,395,000 | £4,018,000 | 5.1%
Amber Valley | EM | £82,316,000 | £3,653,000 | 4.6%
Bassetlaw | EM | £81,768,000 | £5,139,000 | 6.7%
Hinckley & Bosworth | EM | £78,061,000 | £3,255,000 | 4.4%
Harborough | EM | £77,561,000 | £4,043,000 | 5.5%
Broxtowe | EM | £75,749,000 | £4,172,000 | 5.8%
North Kesteven | EM | £75,626,000 | £4,305,000 | 6.0%
Ashfield | EM | £74,379,000 | £3,551,000 | 5.0%
North West Leicestershire | EM | £73,219,000 | £3,793,000 | 5.5%
South Derbyshire | EM | £72,999,000 | £3,487,000 | 5.0%
Blaby | EM | £70,546,000 | £2,520,000 | 3.7%
North East Derbyshire | EM | £67,039,000 | £3,577,000 | 5.6%
Erewash | EM | £66,407,000 | £3,331,000 | 5.3%
Mansfield | EM | £65,354,000 | £2,769,000 | 4.4%
West Lindsey | EM | £63,739,000 | £4,148,000 | 7.0%
High Peak | EM | £63,031,000 | £1,994,000 | 3.3%
Derbyshire Dales | EM | £60,997,000 | £1,772,000 | 3.0%
Chesterfield | EM | £58,230,000 | £3,120,000 | 5.7%
South Holland | EM | £57,050,000 | £3,361,000 | 6.3%
Lincoln | EM | £49,046,000 | £2,993,000 | 6.5%
Bolsover | EM | £47,531,000 | £2,271,000 | 5.0%
Melton | EM | £39,559,000 | £1,379,000 | 3.6%
Boston | EM | £38,700,000 | £1,739,000 | 4.7%
Rutland | EM | £36,086,000 | £1,779,000 | 5.2%
Oadby & Wigston | EM | £36,084,000 | £1,384,000 | 4.0%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
South West | SW | £4,170,619,000 | £204,197,000 | 5.1%
Cornwall | SW | £428,164,000 | £23,547,000 | 5.8%
Wiltshire | SW | £401,770,000 | £17,246,000 | 4.5%
Dorset | SW | £347,595,000 | £14,396,000 | 4.3%
Bournemouth, Christchurch & Poole | SW | £288,013,000 | £20,677,000 | 7.7%
Bristol | SW | £282,731,000 | £17,962,000 | 6.8%
South Gloucestershire | SW | £206,164,000 | £12,051,000 | 6.2%
North Somerset | SW | £157,456,000 | £7,016,000 | 4.7%
Swindon | SW | £150,055,000 | £7,231,000 | 5.1%
Plymouth | SW | £149,024,000 | £5,416,000 | 3.8%
East Devon | SW | £131,472,000 | £5,684,000 | 4.5%
Bath & North East Somerset | SW | £130,664,000 | £4,488,000 | 3.6%
South Somerset | SW | £124,764,000 | £7,644,000 | 6.5%
Somerset West & Taunton | SW | £113,682,000 | £5,014,000 | 4.6%
Teignbridge | SW | £108,453,000 | £4,637,000 | 4.5%
Stroud | SW | £95,358,000 | £3,191,000 | 3.5%
Torbay | SW | £94,708,000 | £3,307,000 | 3.6%
Mendip | SW | £87,093,000 | £3,562,000 | 4.3%
South Hams | SW | £86,517,000 | £3,518,000 | 4.2%
Sedgemoor | SW | £86,095,000 | £5,107,000 | 6.3%
Cheltenham | SW | £85,410,000 | £2,596,000 | 3.1%
Cotswold | SW | £83,351,000 | £5,529,000 | 7.1%
Exeter | SW | £78,786,000 | £2,882,000 | 3.8%
North Devon | SW | £77,785,000 | £3,832,000 | 5.2%
Gloucester | SW | £73,896,000 | £2,565,000 | 3.6%
Tewkesbury | SW | £70,059,000 | £3,843,000 | 5.8%
Mid Devon | SW | £66,171,000 | £3,210,000 | 5.1%
Forest of Dean | SW | £62,009,000 | £3,181,000 | 5.4%
Torridge | SW | £53,044,000 | £2,188,000 | 4.3%
West Devon | SW | £48,269,000 | £2,559,000 | 5.6%
Isles of Scilly | SW | £2,061,000 | £118,000 | 6.1%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
South East | SE | £7,100,340,000 | £385,495,000 | 5.7%
Buckinghamshire UA | SE | £476,884,000 | £34,979,000 | 7.9%
Brighton and Hove | SE | £191,558,000 | £7,849,000 | 4.3%
Milton Keynes | SE | £181,164,000 | £11,932,000 | 7.1%
Medway | SE | £167,634,000 | £8,183,000 | 5.1%
Wokingham | SE | £155,860,000 | £6,423,000 | 4.3%
Wealden | SE | £150,633,000 | £6,611,000 | 4.6%
New Forest | SE | £144,290,000 | £5,034,000 | 3.6%
Elmbridge | SE | £142,689,000 | £7,513,000 | 5.6%
Maidstone | SE | £138,907,000 | £7,964,000 | 6.1%
Reigate & Banstead | SE | £136,732,000 | £10,904,000 | 8.7%
West Berkshire | SE | £132,930,000 | £6,933,000 | 5.5%
South Oxfordshire | SE | £132,912,000 | £7,935,000 | 6.3%
Mid Sussex | SE | £130,908,000 | £6,659,000 | 5.4%
Horsham | SE | £129,545,000 | £4,923,000 | 4.0%
Guildford | SE | £128,587,000 | £9,818,000 | 8.3%
Arun | SE | £128,561,000 | £5,224,000 | 4.2%
Basingstoke & Deane | SE | £127,920,000 | £5,399,000 | 4.4%
Southampton | SE | £127,865,000 | £4,403,000 | 3.6%
Waverley | SE | £126,199,000 | £6,490,000 | 5.4%
Cherwell | SE | £125,460,000 | £8,497,000 | 7.3%
Reading | SE | £122,437,000 | £6,201,000 | 5.3%
Vale of White Horse | SE | £122,351,000 | £8,263,000 | 7.2%
Isle of Wight | SE | £114,625,000 | £5,055,000 | 4.6%
Chichester | SE | £111,057,000 | £4,674,000 | 4.4%
Portsmouth | SE | £109,249,000 | £7,726,000 | 7.6%
Sevenoaks | SE | £109,170,000 | £3,767,000 | 3.6%
Tonbridge & Malling | SE | £108,816,000 | £5,252,000 | 5.1%
Windsor & Maidenhead | SE | £106,251,000 | £5,342,000 | 5.3%
Canterbury | SE | £105,237,000 | £5,470,000 | 5.5%
Oxford | SE | £102,162,000 | £6,259,000 | 6.5%
East Hampshire | SE | £101,202,000 | £4,307,000 | 4.4%
Winchester | SE | £101,104,000 | £5,424,000 | 5.7%
West Oxfordshire | SE | £98,635,000 | £8,696,000 | 9.7%
Test Valley | SE | £98,567,000 | £4,457,000 | 4.7%
Eastleigh | SE | £97,134,000 | £7,362,000 | 8.2%
Ashford | SE | £96,516,000 | £4,804,000 | 5.2%
Swale | SE | £96,492,000 | £5,175,000 | 5.7%
Tunbridge Wells | SE | £96,046,000 | £4,612,000 | 5.0%
Thanet | SE | £92,966,000 | £4,857,000 | 5.5%
Woking | SE | £91,418,000 | £5,005,000 | 5.8%
Mole Valley | SE | £88,615,000 | £4,889,000 | 5.8%
Bracknell Forest | SE | £88,369,000 | £5,761,000 | 7.0%
Spelthorne | SE | £87,143,000 | £5,529,000 | 6.8%
Lewes | SE | £86,287,000 | £3,493,000 | 4.2%
Surrey Heath | SE | £85,950,000 | £4,736,000 | 5.8%
Rother | SE | £85,682,000 | £3,576,000 | 4.4%
Hart | SE | £84,585,000 | £3,910,000 | 4.8%
Folkestone & Hythe | SE | £84,221,000 | £4,130,000 | 5.2%
Tandridge | SE | £84,190,000 | £8,289,000 | 10.9%
Fareham | SE | £82,141,000 | £7,644,000 | 10.3%
Dover | SE | £81,849,000 | £4,231,000 | 5.5%
Slough | SE | £80,975,000 | £5,156,000 | 6.8%
Havant | SE | £80,730,000 | £4,034,000 | 5.3%
Dartford | SE | £80,468,000 | £4,074,000 | 5.3%
Worthing | SE | £79,648,000 | £3,104,000 | 4.1%
Eastbourne | SE | £76,494,000 | £3,931,000 | 5.4%
Runnymede | SE | £73,259,000 | £3,897,000 | 5.6%
Epsom and Ewell | SE | £71,865,000 | £3,462,000 | 5.1%
Crawley | SE | £71,474,000 | £3,364,000 | 4.9%
Gravesham | SE | £69,594,000 | £3,840,000 | 5.8%
Rushmoor | SE | £62,308,000 | £2,530,000 | 4.2%
Hastings | SE | £58,962,000 | £3,563,000 | 6.4%
Gosport | SE | £51,160,000 | £187,000 | 0.4%
Adur | SE | £45,698,000 | £1,784,000 | 4.1%
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
East of England | E | £4,406,439,000 | £221,953,000 | 5.3%
Central Bedfordshire | E | £235,282,000 | £10,088,000 | 4.5%
East Suffolk | E | £174,713,000 | £7,162,000 | 4.3%
South Cambridgeshire | E | £136,111,000 | £8,203,000 | 6.4%
Chelmsford | E | £133,395,000 | £6,401,000 | 5.0%
Huntingdonshire | E | £132,334,000 | £7,376,000 | 5.9%
St Albans | E | £127,897,000 | £5,667,000 | 4.6%
Colchester | E | £126,569,000 | £6,921,000 | 5.8%
East Hertfordshire | E | £126,568,000 | £5,496,000 | 4.5%
Bedford | E | £126,351,000 | £5,638,000 | 4.7%
Basildon | E | £121,713,000 | £5,918,000 | 5.1%
Dacorum | E | £117,558,000 | £6,124,000 | 5.5%
Luton | E | £116,099,000 | £7,903,000 | 7.3%
West Suffolk | E | £113,610,000 | £5,000,000 | 4.6%
Southend-on-Sea | E | £112,359,000 | £5,819,000 | 5.5%
Peterborough | E | £112,107,000 | £5,744,000 | 5.4%
Braintree | E | £109,799,000 | £7,597,000 | 7.4%
South Norfolk | E | £106,868,000 | £5,396,000 | 5.3%
Kings Lynn & West Norfolk | E | £105,794,000 | £4,057,000 | 4.0%
Epping Forest | E | £105,619,000 | £4,105,000 | 4.0%
Tendring | E | £99,943,000 | £9,861,000 | 10.9%
North Hertfordshire | E | £99,724,000 | £3,047,000 | 3.2%
Broadland | E | £96,156,000 | £4,163,000 | 4.5%
Breckland | E | £91,393,000 | £4,250,000 | 4.9%
Cambridge | E | £91,271,000 | £6,671,000 | 7.9%
Thurrock | E | £90,862,000 | £3,494,000 | 4.0%
Welwyn Hatfield | E | £87,182,000 | £5,165,000 | 6.3%
Hertsmere | E | £84,534,000 | £4,584,000 | 5.7%
North Norfolk | E | £83,959,000 | £3,187,000 | 3.9%
Norwich | E | £79,540,000 | £4,318,000 | 5.7%
Ipswich | E | £79,530,000 | £2,680,000 | 3.5%
Three Rivers | E | £78,493,000 | £3,851,000 | 5.2%
Mid Suffolk | E | £76,287,000 | £4,181,000 | 5.8%
Uttlesford | E | £76,098,000 | £3,416,000 | 4.7%
Watford | E | £69,692,000 | £4,441,000 | 6.8%
Broxbourne | E | £69,326,000 | £4,557,000 | 7.0%
Babergh | E | £67,865,000 | £3,164,000 | 4.9%
Rochford | E | £65,451,000 | £3,462,000 | 5.6%
Fenland | E | £65,262,000 | £3,570,000 | 5.8%
Brentwood | E | £65,168,000 |
Local authority | Region - Total receipts of council taxes collected during the financial year - 2022 to 2023 (Q1 to Q4) - (£ full number) | Annual Change (n) | Annual Change (%)
London, L, £5,228,073,000, £331,831,000, 6.8%
Croydon, L, £261,802,000, £18,275,000, 7.5%
Barnet, L, £258,729,000, £11,949,000, 4.8%
Bromley, L, £239,776,000, £9,198,000, 4.0%
Ealing, L, £212,901,000, £15,261,000, 7.7%
Lambeth, L, £183,587,000, £8,133,000, 4.6%
Harrow, L, £182,374,000, £8,764,000, 5.0%
Richmond upon Thames, L, £181,760,000, £7,522,000, 4.3%
Brent, L, £179,325,000, £14,290,000, 8.7%
Enfield, L, £178,712,000, £6,947,000, 4.0%
Havering, L, £176,401,000, £7,883,000, 4.7%
Hillingdon, L, £168,494,000, £9,966,000, 6.3%
Southwark, L, £167,884,000, £12,737,000, 8.2%
Redbridge, L, £167,539,000, £7,448,000, 4.7%
Lewisham, L, £165,099,000, £11,266,000, 7.3%
Tower Hamlets, L, £164,392,000, £13,224,000, 8.7%
Camden, L, £163,071,000, £5,575,000, 3.5%
Hounslow, L, £159,611,000, £11,366,000, 7.7%
Bexley, L, £158,110,000, £8,388,000, 5.6%
Waltham Forest, L, £153,787,000, £7,848,000, 5.4%
Haringey, L, £152,351,000, £9,789,000, 6.9%
Greenwich, L, £148,957,000, £9,512,000, 6.8%
Sutton, L, £143,943,000, £6,126,000, 4.4%
Islington, L, £139,115,000, £8,126,000, 6.2%
Merton, L, £137,978,000, £7,183,000, 5.5%
Kensington & Chelsea, L, £137,047,000, £5,451,000, 4.1%
Kingston upon Thames, L, £136,872,000, £6,369,000, 4.9%
Hackney, L, £131,532,000, £45,146,000, 52.3%
Newham, L, £126,949,000, £10,589,000, 9.1%
Wandsworth, L, £125,377,000, £8,629,000, 7.4%
Westminster, L, £121,347,000, £10,050,000, 9.0%
Hammersmith & Fulham, L, £100,548,000, £2,810,000, 2.9%
Barking & Dagenham, L, £93,065,000, £5,608,000, 6.4%
City of London, L, £9,638,000, £403,000, 4.4%
The big thing to realise about Council Tax is that it’s a really high-priority debt to clear – arguably more than even things like credit card balances or unsecured loans. The fact is that your local council has a lot of ways to make your life difficult if you don’t pay up. Here’s an example: if you wind up in arrears on your Council Tax payments, meaning you’ve fallen behind, you could find yourself with a “liability order” from a magistrates court. This nasty little piece of paperwork can dump a load of extra court costs on top of what you already owe, and pave the way for even more enforcement action. We’re talking about visits from bailiffs, automatic deductions from your earnings or benefits, bankruptcy or even a prison sentence if you let things go that far.
Okay, let’s say you’ve missed a few Council Tax payments and can’t see an easy way to pay up. Don’t fool yourself into thinking that the authorities won’t notice, and don’t wait for them to get in touch with you before you decide to do something about it. Hop on the phone to the council office and talk them through the difficulties you’re having. You’ll almost certainly still end up having to pay what you owe in full, but there’s a good chance they’ll be able to offer you easier ways to do it. If you ignore the problem, you’re probably going to find yourself facing court costs, bailiff bills and potentially lots more trouble on top.
If you talk to your council, you’ll probably find them more than willing to help. After all, they’re not trying to ruin you. All they want is what you owe by law. Instead of coughing up the whole amount at once, though, the odds are you’ll be able to spread your payments out over a longer period, paying off your debt in small chunks each month. No, it still probably won’t be much fun, but it’ll eventually make the whole problem disappear and it’s a lot better than the alternatives.
Council Tax charges are set in “bands” from A-H, with the band you’re put in based on how much your property was worth back on the 1st of April 1991 (for England and Scotland) or the 1st of April 2003 (for Wales).
It’s quite possible that you’ve been put into the wrong Council Tax band, and if you think you have you can actually challenge the council’s decision. This kind of thing can happen if, for instance, your property’s been changed, demolished or is being used for different purposes than before. If you think that applies to you, you can challenge the decision via the Valuation Office Agency (or the Scottish Assessors website in Scotland).
Another reason your council Tax bills might be too high is if you’re due a discount that you aren’t getting.
To put it in perspective, let’s say you’re a student who’s just moved into rented accommodation. The rules say you don’t need to pay Council Tax – but that doesn’t mean the local council won’t ask for it. You’ll almost certainly have to apply for your Council Tax exemption directly. It might sound like a hassle, but at a saving of up to £120 per month, it’s absolutely worth it!
Another thing that can bring down the Council Tax you’re being charged is if you qualify for a Council Tax Reduction (also known as Council Tax Support). Again, though, the council will need a lot of information about your circumstances to make their overall calculations. You could qualify for a reduction if:
The reduction you actually get will depend on a range of conditions, from your age to your savings and benefits. You get less if you’re still at working age, for example.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Capital Gains Tax applies to tangible, movable items worth over £6,000, like artworks, jewellery, and machinery. Some exceptions: private cars, short-life assets under 50 years, and certain business-used assets. Determining applicability can be tricky, so seeking professional advice for clarity is advisable.
It’s not always easy to know how far to trust the advice you get in any walk of life. Luckily, with tax advisers you can check their credentials fairly easily. A good adviser will have properly regulated qualifications from a professional body to show you, so you’ll know their skills and knowledge are both up to standard and up to date. A fully accredited tax adviser has to have Professional Indemnity Insurance, too.
Here’s a quick list of professional bodies who can point you in the right direction when you’re looking for a tax adviser:
If your adviser says they’re a member of one or more of the bodies on this list, don’t feel awkward about getting in touch with the organisation to check up. Their customer service department should quickly be able to settle any doubts you have, one way or the other.
Of course, all these different kinds of loan aren’t much use if you don’t have a strong credit history to fall back on. That’s where credit builder loans come in. These agreements are built to put much-needed financing within the reach of people who couldn’t otherwise access them. The system works by the lender paying the amount to be borrowed into a savings account. The borrower then makes monthly repayments at a fixed rate for anything between 6 months and 2 years. Once the loan’s repaid, the borrower gets the cash back, possibly with some interest on top.
Why is this useful? Well, a credit builder loan is less about getting some up-front cash than it is about building up your overall credit rating. If you’ve only got a limited credit history, signing up to this kind of deal is a decent way to boost your score and make other lenders take you seriously, by establishing a track record of sticking to a repayment schedule. Of course, to make this work you need to be sure your lender’s reporting the deal to the organisations that track your credit score.
Let's take a moment here to talk about what kind of information goes into your credit score. Obviously, a lot of the basic details are going to be personal to you. These could include the work you do, where you live and your yearly income, for instance. Beyond that, though, your credit score could also reflect things like any gaps in your previous payment history, any credit arrangements you already have and any problems you've had in the past with fraud, debt or even bankruptcy. Don't assume that a run of bad luck will necessarily haunt your credit score forever, though. Most of the information that goes into putting your score together will only go cover the last 6 years.
Many of these tips are things you'd already expect, but there are one or two odd ones mixed in that most people wouldn't usually think of.
This is one of the stranger tips, but if you're looking to borrow money from a serious lender, you're going to have a much rougher ride of it if you're not registered to vote in the UK. Since you're supposed to be on the "full" version of the register anyway by law, it's a smart move to make sure you're all signed up. If you're worried about your personal information being sold, you can still opt out of being listed on the "open" register, but credit reference agencies will be using the full version so you'll still show up when they look.
Your credit rating might be based on your past history, but it's really all about predicting your future actions. If your record's littered with late or skipped payments, you're going to look like an iffy prospect. Also, even if you never miss a deadline, you can still look riskier to a lender if all you ever do is pay back the absolute minimum amount. If you're worried you might have trouble making an upcoming payment, get in touch with your lender to see if you can arrange an easier schedule.
Even if your own financial hands are perfectly clean, it's easy to muddy the waters of your credit score if you've got strong ties to a bad payer. If you've got financial links to another person, keep in mind that their credit history can affect yours. Sharing a joint loan, mortgage or other financial product with someone who's got a weak credit score might not be a great way to secure credit of your own.
This is another thing that might not seem particularly important, but can still have an effect on your overall attractiveness to a lender. In general, you want to keep the number of searches being made on your credit history to a minimum. These "hard searches" leave fingerprints all over your file, and a lot of searches in a short time can look dodgy. For instance, if you get a rejection from one lender and immediately apply elsewhere, the new lender will probably work out you just got rejected by someone else. To avoid this, it's a good idea to use a free eligibility calculator that won't show its searches in your file. That way, you'll know the chances of your credit application succeeding before you make it.
Another fairly obvious one. Lenders like to see consistency when they search your credit history, so make it as easy as possible for them to approve your application by ensuring your details match. For example, seeing the same address on all your credit applications, even older ones, will give your lender a lot more confidence in you. While you're at it, check regularly that there are no mistakes or outdated details in your credit files. Keeping those records spotless is the key to proving you're a safe pair of hands for a lender's money.
One last weird one to finish the list. If you've got a low credit score or not much of a previous payment history, you can boost them by signing up for a credit card with low acceptance standards. You'll probably find yourself stuck on a painful interest rate (maybe 35% or so—lenders like higher rewards when they take higher risks), but if you use the card on a "little but regularly" basis and always pay it all off each month before the interest kicks in, you can build up your credit score without getting hit with heavy repayments. If you've already got a credit card, even following the same basic principle with that can help ramp up your score—and avoid another hard search on your file at the same time.
Nope! Your details aren't being kept on a hidden list and you won't get blanket-banned for having a poor credit history. Most of your information expires after 6 years anyway.
Oddly enough, no. Having a good credit score is more about making your repayments reliably than never borrowing at all. Lenders are in the business of collecting interest, so a strong history of paying up on time is what's crucial to them.
No chance! Councils are very tight-lipped about payment information, so falling behind in your Council Tax bills won't put a dent in your overall credit score. If you're struggling with Council Tax Debts, though, check out our guide on handling those.
Read our guide: Council tax debt help
As it turns out, the 3 credit reference agencies (Equifax, TransUnion and Experian) each have separate ranking systems and scales, so you'll almost certainly have different scores on each. All that really matters to lenders is the information those scores are based on. They never get to see your credit score anyway, only the records of your actual history and financial behaviour. In practice, what this means is that your score's a good overall indicator of your reliability, but it's your credit history that makes the real difference.
Yes they do—they're just not the last word in the matter. While your credit score itself is really just for your own reference, it's based on a lot of details about you that lenders will want to know. Having no credit history, for instance, doesn't give your potential lender any information to base their decisions on. Having a strong history of borrowing responsibly and hitting repayment schedules reliably, on the other hand, makes you look like a much safer gamble to them.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
This can get pretty complicated, very quickly, so we’ll keep it simple: The exchange rate is how much it costs to buy another currency.
For example, at the time of writing (Aug ‘22), you can buy one Euro for 84p - so 100 Euro will cost you £84. Give or take a few pennies!
If you’re buying pounds with Euros, £1 will cost you 1.19 Euro.
And a US Dollar will cost you 83p.
When they say the pound ‘is strong’, that means it costs more. Exchange rates go up or down depending on market conditions. If you’re taking cash on holiday, it’s advised to monitor the exchange rate and shop around. You’ll find a few comparison tools online like Compare Holiday Money.
Read our guide: Understanding comparison sites
Hotels and airports tend to be the most expensive places to exchange currency. And if you’re waiting until you get there to withdraw cash from the cashpoint, always do it in the local currency. Just don't forget to check if your bank charges ATM or foreign transaction fees.
However easy and convenient it is to use your bank debit card at home, they can be the worst way to spend on holiday. Most charge a foreign transaction fee. To give you an example, most standard debit and credit cards will charge a foreign transaction fee of around 2.75% to 2.99% every time you spend on the card. This means for every £100 you spend you could be charged £2.75 to £2.99.
Plus - and this is important -When you’re paying for anything by card, they’ll likely ask you if you want to pay in sterling or the local currency. If you choose pounds, the retailer does the currency conversion and rates can be poor. If you choose the local currency, your card does the conversion and will give you a better – if not the best - rate.
Again, it depends on your card type. Our advice? Do your research and choose the best overseas credit, debit or prepaid travel money card for you.
Back in 2017, mobile networks were stopped from charging customers extra to use their phones in other EU countries. Since Brexit, we here in the UK have lost this protection against roaming charges.
You can read all about it here, but the most important takeaway before you go-away is to check your mobile phone provider’s charges.
Almost all the big companies have reintroduced EU roaming charges and many are introducing fair usage policies. For example, Giffgaff will allow members to use up to 5GB when roaming in the EU at no extra cost. They say that’s fair and reasonable as more than 90% of members use less than that when roaming abroad.
There are a couple of practical things you can do to avoid excess charges or a shocking bill when you get back from holiday:
Think about it this way: you’re getting away from it ALL! A holiday is a great opportunity to have a break from your socials.
If you’ve got travel money left over, converting this to pounds sterling is called ‘buying back’.
Currency buy-back services will buy your Euros, dollars or other cash at the current buy-back rate – that is how many pounds you can get for it.
If you’re offered a Euro buy-back rate of 0.8, for example, you’ll get 80p for every Euro you sell.
You can choose which service to use – look for one that is offering you the best exchange rate and watch out for any additional fees.
It’s good to know that if you bought your travel money at the Post Office and still have your receipt, they will buy back leftover notes without charging you commission.
This might be a bitter piece of advice for dedicated coffee drinkers, but those name-brand indulgences are flushing good money straight down the toilet. £3 per day quickly adds up to £15 per working week, then £765 per year. That’s more than enough to pay down a nagging debt or handle most kinds of emergency expenses.
If you really can’t live without coffee in your life, making it at home is a good way to bring the costs down. Even just switching to a less expensive brand will help in the long term. Cheaper places like Greggs and McDonalds might feel like a step down, but a lot of what you’re paying for with more expensive coffee just boils down to the brand name and presentation anyway.
If even that seems like a step too far, whatever big-name coffee brand you’re loyal to might actually have systems to help you out. Check out any incentive schemes they offer. Sometimes just bringing in your own mug can get you some kind of bonus or discount.
We talk a lot about budgets in these guides, and there’s a good reason for that. Setting yourself a budget is a lot easier than it looks, and it’s absolutely Job One when you’re taking back control of your wallet. Even if you’re just looking to save on your everyday spending, though, you’ll still need to learn how to make better use of your cash.
All you need to do to get started is work out what you’re spending day-to-day on average. Make an actual list, and try to paint as complete a picture as possible of where your money’s going. It’ll help if you separate it all out into categories (like “travel costs”, “work lunches” and so on). That way, you’ll be able to work out which ones are absolutely essential and which you can bring down. With that list in hand, you’ll be all set to start making savings.
Buying food when you’re out at work is one of those easily missed expenses that can become an “invisible” drain on your finances. After all, you’ve got to eat, right? It can be expensive buying prepared food every day, though, with average work lunch bills easily hitting anywhere between £3 and £10 per day. You might not notice the money trickling out like that, but over time it stacks up fast. Simply making a little extra at dinner the night before and taking the leftovers in to work with you can fatten up your wallet to the tune of £15-£50 a week.
This is another simple trick for keeping a firmer grip on your financial steering wheel. A lot of our overspending comes down to the fact that it’s been made so easy to part with our money. Wave a card at a machine or tap a button on our phones and the transaction’s done. It hardly feels like spending at all! If you’re looking dependable for ways to slow your expenditure, think about giving the plastic a breather for a bit and switching back to cash. Take the money out that you’ve budgeted for the week, and work your way through it. Setting a rule that you can’t spend what you don’t have in physical cash will really clamp down on any impulse spending. It sounds a little old-school by modern standards, but it really is one of the best, most reliable changes you can make to track what you’re spending and save money quickly.
While we’re on the subject of keeping track of the cash you’re parting with, it’s a good idea to make a solid habit of that. Seriously – set aside some time once a week to see how your actual spending measures up to the plans you made. A budget will only ever be as good as your ability to stick to it, after all. Recording your costs as they crop up will go a long way toward spotting and fixing any overspending you’re doing. You’ll also probably find a few opportunities to save even more along the way.
Travel, whether it’s for work or anything else, is another one of those costs that we tend to think of as non-negotiable. If you’re going by train, though, you’ve got a few options that can make a big difference to the asking price of your ticket. The first thing to do if you’ve travelling by rail regularly is look into your railcard options. Grabbing one of those can save you up to a third of your ticket costs on its own!
The other thing to do is try to book your train fares in advance. Ticket prices tend to be cheaper the earlier you buy them, so the sooner you book the better the deal you’ll tend to get. By comparison, buying your ticket on the day could see you being charged an incredible five times what you would have paid if you’d booked a few weeks in advance!
If your travel to work is getting to be a problem, and you can’t see any way of bringing the cost down, you might try asking your employer if they run any schemes to help. It turns out a lot of businesses offer zero-interest loans for travel to work. Basically, your boss fronts you the entire cost of your travel, then you pay off what you owe through monthly instalments. Sorting out your travel this way means you can grab a discount season ticket you might not otherwise have been able to afford outright. Those tickets work out a lot cheaper than buying your fares on the day, and your repayments will come out of your salary automatically so you don’t need to budget specifically for them. Over the course of a year, you could easily be looking at savings worth hundreds of pounds!
Cutting down on everyday overspending is a marathon, not a sprint. It’s not about making occasional big, one-off savings. Instead, you’ll get better, more reliable results simply by chipping away at your day-to-day expenses consistently over time.
Take your daily cup of coffee, for instance – and yes, we know we’re on dangerous ground by asking you to cut back on that essential caffeine hit. The thing is, you don’t even need to cut back your tea or coffee intake to make savings. Just consider whether you could bring in your own from home in an inexpensive flask. That way, when you feel your energy levels flagging at work, you’ve got the solution on-hand instead of having to trek to the local cafe to top off your tank. Those store-bought coffees might not seem like a huge drain on your wallet at maybe £3 a pop, but a couple of those a day will run you £30 per week. That’s up to £120 a month you could save, simply by making one tiny change to your daily routine.
If you’re serious about saving money and developing better financial habits, take a look at our other guide, “4 Fixed Income Saving Strategies - Combine to Win!” That’s where you’ll find some of the very best budgeting tricks, like following the 50/30/20 rule and making “zero-based” budgets. In the meantime, keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
So here’s where things get serious. When it comes to deposits, you’re probably going to be paying somewhere between 5% and 20% of your new home’s asking price up-front. As of 2021, the average value of a first-time buyer’s home was a little over £264,000. That means some people were being expected to front up well over £50,000 as a deposit. That’s at the upper end, obviously, but even a 5% deposit at that price comes to over £13,000.
The thing is, a smaller deposit might lower that initial hurdle quite a bit, but it makes the whole race track much steeper. The more you can afford to pay up-front, the lower your monthly mortgage payments will be. With a higher deposit, you’ll find yourself in a much stronger financial position for years to come.
Let’s slot a few numbers in here so you can see how it looks in practice. We’ll assume you’re putting down a deposit on a house worth £264,000. You decide to be fairly ambitious, and go for a mortgage deal with a 15% deposit. That means you’ll be paying about £40,000 up-front, which you’ve given yourself a target of 5 years to save. At that rate, you’ll be aiming to sock away about £660 per month consistently over those 5 years to hit your goal. Challenging, but not impossible, so let’s talk about how to make it happen...
Redundancies almost always come as a blow, but it’s important not to let yourself get too run down by them. It might sound like a cliché, but it’s so important to pick yourself back up as quickly as possible. Despite how it feels at first, this could be exactly the big shake-up you needed to move forward in your career – or even switch careers altogether. If you’ve been saving your pennies wisely (and following the budgeting advice in our other guides), you should ideally have as much as 3 months of your basic living costs socked away. Why not take some time to train up for the career you’ve always wanted?
Even if that’s not an option, the time to make redundancy plans is before the sky falls in, rather than after. Preparing for a big upheaval in your work life is worth a lot more than coping with it after it’s already happened. If you’ve been warned that redundancies might be coming at work, the time to act is now. You’ll be in a much better position to bounce back if the worst happens – and even if it doesn’t.
So what do we actually mean by preparation? As with so much of your other day-to-day financial planning, the first step is to take a good, hard look at what you owe. If you’re hit with a redundancy, for instance, the odds are good that you’ll wind up with a dent or two in your credit score. Lenders are going to think twice before extending you any kind of financing if you’ve taken a serious drop in your income. Now’s the time to get a firm grip on your debts, because they’re what’ll sink you if they get out of control while you sort out your work situation.
We’ve already talked about the value of having rainy-day savings. Here’s the bit that trips people up, though. When you’ve got debts racking up interest, paying off what you owe usually a much smarter move than putting savings away. The interest on a debt will almost always grow a lot faster than the interest on your savings, making you poorer over time. Using spare savings to wipe out expensive debts like credit card balances, for instance, will prevent them building up to nightmare proportions while you’re still finding your financial feet.
Read our saving strategies guide
Speaking of balances, there’s a delicate one to strike here. Yes, paying down what you owe is a smart and necessary move, before or after a redundancy. At the same time, though, you still need access to emergency cash. If you wipe out your entire rainy day stash blitzing through your debts, you’ll be risking some very hard decisions later if it takes longer than expected to land a new job.
As for specific, practical help you can get, it’s worth tackling the most important of your costs first. If you’re paying off a mortgage, for instance, you need to work out what kind of protection you’ve got to fall back on. There are schemes designed to help people through exactly this kind of situation, from both private organisations and the government itself. Search around and see if there’s one that’s a good fit for your situation.
Next, go back to your budgeting basics. If you’ve read any of our articles on building budgets, you already know how much easier they make your day-to-day planning. Simple systems like the 50/30/20 rule take very little work to set up, but the pay-off can be immense over time.
When you’re working out your budget, all you’re trying to do is plug the leaks in your finances by bringing down the costs you can control while protecting the ones you can’t. Have a look through our guides for more on budgeting, and try out our free 50/30/20 tool for instant, practical help.
Tax debt is a situation that many people find themselves in from time to time. It can happen if you’re on the wrong tax code, for example, or if you’ve made a tax refund claim for more than you’re owed. However it happens, it’s important to solve the problem as quickly as possible. The longer you leave your debt unpaid, the worse the situation gets.
One of the easiest ways to end up dealing with a tax debt is when you file Self Assessment tax returns – or when you’re supposed to and don’t. Even if you don’t actually end up owing any tax, if HMRC’s expecting a return from you and don’t receive one, there can be problems.
This affects more than just the self-employed, too. There are several reasons why the taxman might be waiting for a Self Assessment return from you. Maybe you’re the Director of a company, or just making a little extra by renting out a room or selling regularly on eBay. Whatever the reason, if you don’t hit the Self Assessment filing deadlines, you’re probably going to get a penalty.
If paying up straight away is a problem, you’ve got a range of options for settling up -and HMRC is usually more than willing to help you find a solution that works for both you and them. Ignoring the problem won’t resolve it, though, and can lead to automatic fines and penalties.
Tax debts have a nasty habit of creeping up on you, mainly because people don’t understand the rules. The first many people even hear about a tax debt is when HMRC gets in touch about it. Pretty soon they find themselves fines and stacking penalties. Not long after that comes the phone call from HMRC Debt Management and Banking (DM).
You can’t afford to ignore a warning from HMRC that you owe a tax debt, even if you’re sure it’s a mistake. HMRC has a whole range of options it can pursue to reclaim the money they’re owed, including:
Here are some common penalties HMRC can apply:
Keep in mind that HMRC automatically charges interest on late tax payments as well. If you’ve got a really good reason for missing the deadlines, you might be able to argue your penalties down or appeal against them. Don’t count on that, though. The list of valid excuses is pretty short.
The basic rule of thumb about contacting HMRC is to do it sooner rather than later. For starters, you’re going to want to ring them immediately if you’ve got a payment or filing deadline looming and you already know you’re not going to hit it. If the deadline’s already flown by, of course, the longer you wait the worse things will get. Sending up a distress flare early is the best way to limit the damage – or even avoid it altogether.
Another time to jump on the phone to HMRC is if you spot anything wrong with your tax statement. Mistakes on your Self Assessment can usually be sorted out easily before the deadline by just amending your tax return online. If it’s too late for that, you need to reach out to the taxman as soon as possible. You’ll probably have to sit on an automated queue for a while, particularly at busy times of year. It’s still a lot better than waiting for the mistake to catch up with you further down the line, though. If HMRC has to come looking for you, the ride tends to be a little bumpier.
As for how HMRC can actually help when you’ve got a tax debt you can’t pay, there’s actually quite a lot they can do. If you know you’re going to have problems paying up, you might be able to sort out a “time to pay agreement” with them. You’ll have to cough up a little interest on top of what you owe, obviously, but it’s better than choking on a debt you can’t pay off at all.
You’ll be expected to explain why you can’t pay in order to arrange a ''time to pay agreement''. That’ll mean forking over some information about what you’re routinely earning and spending. There might also be some questions about other family members’ earnings. Again, don’t resort to guesswork when you’re answering these types of questions. Arrange to call them back when you’ve got what they need.
If you’ve got any particular circumstances limiting your ability to pay, HMRC will want to know about these too. Any illnesses or business crises you’ve been weathering can be useful information, for example. Your agreement might involve paying off a chunk of your debt now, then the rest by instalments later. That’s a good option if you can afford the initial lump, as it’ll make the debt cheaper in the long run.
Once you’ve got your agreement in writing, you should also let HMRC know if your circumstances change. Don’t wait until you miss an instalment to get in touch. When it comes to paying off a debt like this, planning ahead is everything.
As for what to do when you’re already stuck with serious debt problems, you’ve got a variety of options. Again, the right approach will depend on the situation.
Debt Management Plan
One example is the debt management plan. This is basically just an agreement to pay off your debts in an affordable way. They’re often arranged through specialist companies, who charge a fee to share out your repayments among the people you owe. You’ll need to provide some information about yourself and your circumstances, and the plan can be cancelled if you don’t keep to the agreement.
Administration Order
For debts up to £5,000 when you’ve got a County Court or High Court judgement against you, you might end up with an administration order. In this case, it’s the local court that divides up your monthly repayments among your creditors. While it’s not ideal, it does mean that the people you owe can’t take any more action against you without a court’s approval. There’s a court fee to pay for this, but it can’t be higher than 10% of your total debt.
Individual Voluntary Arrangement
Another option is an Individual Voluntary Arrangement (IVA). You make regular payments to an insolvency practitioner, who splits them between the people you owe. IVAs give you more freedom than declaring bankruptcy. However, you can still end up facing bankruptcy proceedings if you break their terms. Your creditors get a say in this as well, of course. Unless the people you owe at least 75% of the money to agree, you can't take out an IVA at all.
Debt Relief Order
For debts up to £20,000, you can sometimes get a Debt Relief Order to help soften the blow. If you qualify for one, your creditors will need a court’s permission to pursue you. Also, you’re generally considered clear of debt after 12 months. DROs are designed for people with very little spare cash, and who don’t own their own home. You’ll need to apply through an authorised debt adviser. If you meet the criteria (if you’ve got less than £1,000 of assets, for example), you pay a £90 fee to an “official receiver” and accept a few restrictions. You can’t be a company Director, for instance. You also can’t borrow over £500, open a bank account or manage a business without telling people about your DRO.
Bankruptcy
With bankruptcy, your situation is considered by the Insolvency Service. If they agree, and your debts are all unsecured, you'll again be given some rules to follow about handling your money and assets. Some of your property might be sold to pay your debts, and you might have to turn over things like bank cards. Even your home can sometimes be sold, depending on your circumstances. Despite this, bankruptcy really does protect you much as your creditors. Your pension savings, for example, are usually kept safe - along with your household essentials and anything you need for your job.
Remember we mentioned that the important thing is to understand you’re not alone? It’s so easy to get caught up in your own head when you’ve got debts that feel out of control. This goes for all kinds of debt, not just taxes. When there’s interest stacking up and legal threats looming, it can feel like a lonely and dangerous world. However, there’s a whole range of support for people with debt problems. The right help for you is going to depend on your circumstances – but in a lot of cases it might be as simple as claiming a tax rebate.
Every year, HMRC ends up sitting on many millions in unclaimed tax refunds – simply because people don’t realise what they’re owed. When you’re paid via PAYE, many of the essential expenses of doing your job can earn you tax back from HMRC each year. For most refund claims, this means getting tax relief for travel to temporary workplaces, but there are lots of other expenses you can claim for.
For the self-employed, the system’s a little different, since you’re actually being taxed on your profits. When you file your Self Assessment return, all the necessary costs of doing business count against the income you’re paying tax on.
In either case, the rules on expenses can be tricky to get your head around, so lot of people choose to get professional help. Getting your taxes sorted properly, whether on your own or with expert help, can be a big step toward ending debt problems before they start.
There’s a general rule that a lot of people cling to about managing money troubles – you can’t borrow your way out of debt. It’s broadly true, as far as it goes, but it really doesn’t paint the whole picture. For instance, while borrowing to pay off debts isn’t always a great idea, it is possible to trade an expensive debt for a cheaper one. Not all debts are equally expensive – just ask anyone who ever switched a credit card balance to another provider for a 0% interest rate. You’ve got to get a bit hands-on to make the most of things like this. Even so, you could lighten your load a lot with just a few careful moves.
We really do mean careful moves here. Don’t leap at the first quick loan option you find. Payday loans, for instance, are sold to you on the idea that they're easy to get and a fast way to nab yourself some short-term cash. That's all true, but you're really only squinting at the big picture here. If you don't keep your wits about you, you might just be digging a much deeper hole than the one you’re already in. For instance, let's say you get a payday loan of £600 for 6 months, at 0.75% interest a day. You get your £600 now, but at the end of the loan you'll be paying back a whopping £1138.29 – almost double what you borrowed. That's a “representative APR” (the interest rate plus all the associated charges) of 1,086%!
With any kind of debt, the first thing you need to do is get control of your spending. Once you’ve got a handle on that, it’s time to look at things like:
A key thing to remember is that debt interest basically always stacks up higher and faster than savings interest. It’s painful to dig into your savings to pay off a debt, but it still means paying less over time.
If there’s one thing we still don’t talk about enough in the UK, it’s mental health. There’s still so much stigma attached to issues like stress, anxiety and depression – particularly in industries like construction. UK construction workers commit suicide at over 3 times the national average – and still so few people who are suffering feel like they can get the help they need. When you’re dealing with the toughest aspects of HMRC and debt, it can take a serious toll on your mental health.
Thankfully, HMRC does have a few policies in place to help people through difficult times. In fact, it’s their legal responsibility to make what they call “reasonable adjustments” to assist people with certain mental health conditions in using their services. Depression, for example, can count as a “disability” and be covered under the reasonable adjustments system.
Basically, if you qualify, HMRC can do a few things to make life a little easier when dealing with them. It may be as simple as contacting you in writing rather than over the phone, for instance, or taking extra care to make sure you’ve understood everything. You may be able to arrange for a relative or friend to speak to HMRC on your behalf, if you can’t handle it yourself. Even if your condition doesn’t fully count as a disability, you can still ask for HMRC to take it into account in their dealings with you. They’ve started taking mental health very seriously, working hard on improving their training to better accommodate sufferers’ needs. There’s even a “Needs Extra Support” (NES) system, where they tend to throw out their standard scripts and procedures in favour of offering more personalised, one-to-one help.
The thing is, they won’t know to offer you all this extra support unless you explain that you need it. You have to ask them to put a note in your file describing your condition or problem. That way, you won’t end up going round in circles every time you speak to a new person. As always, the sooner you ask for help the better things will work out.
When it comes to mental health problems, the first and most important step is recognising the signs. Crucially, it’s just as essential to learn to spot them in your colleagues, friends and family as in yourself. Here are a few early warning signs that you or someone else may be struggling with mental health.
That's a long list - and almost everyone can check off a few of those symptoms from time to time. The trick is recognising when you're getting swamped by things, and reaching out before it goes too far.
With debt problems, it’s tempting to look for “quick fix” solutions – but that’s usually a mistake. A lot of people simply end up swapping one set of debts for another, potentially much larger, one. The same goes for looking after your mental health. Any looming problem become a lot more manageable when you break it down into smaller steps. With debt, that can mean spotting the signs of trouble early, understanding the causes and making a plan to tackle them.
The exact same process applies to mental health. It can be tough to break the cycle of mounting money problems causing stress or anxiety – which then only worsen the money trouble. The best place to start is often with the practical side – cutting out problem spending and bringing down the cost of your debts. However, that won’t always be possible when your mental health is tripping up your efforts. Again, though, taking small positive steps is the surest way to get things moving in the right direction. That can mean coming to terms with the relationship between your mood and your spending habits, for example. Once you start spotting the patterns, it can get a lot easier to attack the problem at its roots.
If you’re worried about getting professional mental health help, don’t be. There’s a lot more to it than the old stereotypes of medication and side-effects suggest. In fact, a lot of mental health issues can be handled without ever getting a prescription, through things like Cognitive Behavioural Therapy. For many people, improving mental health is all about changing the way they think. It takes a little practice, but can be very effective if you stick with it.
The main point is to give yourself permission to take back control. Once you’ve seized the reins of your own mental health, you’ll be in a much better position to be proactive about your debts. While you’re at it, give yourself permission to get qualified help as well. There’s no shame in suffering from poor mental health, just as there’s no shame in struggling with debt. Don’t be fooled into thinking you have to tough out either alone. No debt crisis is impossible to fix, and there’s a whole range of organisations out there offering real, practical and judgement-free solutions. You can get free of your debts with the right guidance, and no one needs to suffer alone through a mental health crisis.
When debt issues lead to, or worsen existing, mental health problems, knowing where to look for help is critical. In terms of basic, practical guidance, you could do a lot worse than the Citizens Advice Bureau. They have a comprehensive service for debt issues, even if they’ve reached the point where people are repossessing your belongings. National Debtline is also a great option for free and confidential advice.
Stepchange is a charity dedicated to helping people conquer their debt problems, helping 650,000 people a year. They’ve got specialised services for people with mental health issues with a free advocacy system. While we’re on the subject, there’s a fantastic list of helplines and support groups for mental health issues on the NHS website, covering everything from stress and depression through to panic attacks and bipolar disorder. There’s even a specialist charity called The Lighthouse Club for the construction industry, where mental health is a serious issue. They have a dedicated helpline and even a construction worker mental health app.
Good planning, expert guidance and practical help will go a long way toward getting your fears and finances under control, and there are so many resources out there to get you back on track. Debt and depression both grow fastest in the dark. Don’t suffer in silence, particularly at the cost of your mental health.
Other useful debt contacts, charities and organisations include:
We talked a bit about these earlier, but at heart a debt consolidation loan is just a way of getting other high-interest debts under control. Instead of making monthly payments to a collection of lenders, you take out a single loan to pay them all off at once. Once those other debts are settled, you’ll be left with only a single loan to clear – hopefully at a lower interest rate than you were paying before.
Debt consolidation loans can be great for people struggling with expensive debts like credit card balances. Depending on your situation and lender, you might end up with a fixed or variable interest rate to deal with, but clearing credit cards and other loans can seriously boost your credit score, simplify your monthly finances and potentially save you a lot of cash overall.
Maybe a financial catastrophe – like a big car repair bill, unforeseen home expense or being out of work for a while – has eaten into your monthly outgoings and you’ve fallen behind with repayments. Don’t worry – the answer is easier than you think!
Most companies are very understanding and will have dealt with this for other customers. Get in touch to explain the situation and ask if you can spread out any outstanding payments to ensure they are affordable for you. It’s in their interests to help you to stay on track.
You can start by getting together your personal budget, showing your income and outgoings and money you have left over each month. Then you can offer to make affordable repayments.
Would a tax refund help?
An average 4-year tax refund from RIFT comes in at around £3,000. That could be enough to get you out of a financial pickle or at least help you to tick over while you get back on track. 2 out of 3 people don’t know they qualify for a tax refund.
There are many businesses out there who can help you to manage your debt over the longer term. They of course charge fees for their service, so while your monthly outgoings go down or least become more manageable, you will end up paying more to service and pay off your debt. Our best advice? Get help from a debt charity...
There are a few charities dedicated to helping people with debt that operate nationally. They are expert in this area and their services are FREE. They can help you to negotiate the debt maze and find your way to a manageable situation. Most importantly, they won’t add anything to your debt with fees or charges.
Here’s our top 3:
A dedicated debt charity, StepChange offers the advice and support you need to get your finances back on track.
Their website has a debt advice tool that can help you to create a budget, personal action plan and guide you with practical next steps.
If you want to speak to an advisor, call 0800 138 1111. Lines are open Monday to Friday, 8am to 8pm and from 8am to 4pm on Saturdays.
Debt advice is just one of the services Citizen’s Advice offer across England. They have offices across the country and many have specialist caseworkers in their teams who can help you with anything from repossessions to negotiating with creditors.
Visit their website to chat online with a real-life advisor or call 0800 240 4420 for general enquiries.
Adviceline (England): 0800 144 8848
Advicelink (Wales): 0800 702 2020
Run by the Money Advice Trust, National Debtline has been helping people with free and confidential advice for more than 25 years. Their expert advisers have helped millions of people to improve their situation and take control of their debts.
You can get advice online, via webchat or over the phone: call 0808 808 4000 Monday to Friday, 9am to 8am and on Saturdays between 9.30 and 1pm.
According to Moneyhelper.org, a Debt Management Plan (DMP) is something that: “…allows you to pay off your debts at a rate you can afford.”
It might be for you if you have non-priority debts (see below). Any good Debt Management Plan provider will help you to work out your budget and put together an affordable payment plan.
First off – do your research. The simplest way to do that is to get advice from one of the debt charities. Tell them about your circumstances and they can advise on the best course of action for you. As a rough guide, you can qualify for a DMP if your budget can cover at least £5 or more to pay each of your creditors. You make one single monthly payment to the Debt Management Plan provider who will pay your creditors for you. This makes the payments easier for you to manage.
Non-priority debts include things like bank loans, credit cards, student loans, water charges and benefits overpayments. These can be included in a DMP.
Priority debts can’t be included in a DMP as stopping paying them has more serious consequences than non-priority debts.
According to Citizens Advice, priority debts include:
You should get advice on paying your priority debts before you set up a DMP.
It’s easier to manage.
If you have multiple debts, you can say goodbye to managing multiple payments each month. You agree one affordable amount and pay it to your DMP manager. That’s a lot less stress!
You may pay less interest.
Your DMP manager may be able to negotiate a lower interest rate which means you accumulate less debt over time. Lower interest rates also often men lower monthly payments.
You’ll save money.
Most people with a DMP save money. That’s because lower interest rates and an accelerated repayment time over the course of the plan can save you more money.
Your credit score should recover.
This isn’t guaranteed but because a DMP makes it easier to stay consistent in your repayments and reduce your debt quicker, these factors can contribute to making your credit score higher.
If you have a credit card, your account will be closed.
Once you’ve entered into a DMP, your account will be closed and it’s unlikely you’ll qualify for any further credit. This is to ensure you don’t take on any more debt while you have debt outstanding.
You must be consistent.
If you don’t meet your new monthly payments consistently, you may lose the benefits of the plan. DMPs work best for people who want financial change and to keep their agreement.
Creditors don’t have to agree to a DMP.
While most will, creditors aren’t obligated to enter a DMP. Your Plan manager will of course negotiate with lenders on your behalf but an agreement isn’t guaranteed and they may continue to pursue you for outstanding debt.
Your Debt Management Plan does not have to cost you anything. There are companies out there who will charge you fees – they are in business to make money after all. And you are free to choose any of them.
You can weigh up the costs yourself: they may be saving you money on interest and over the period of the plan. But if that benefit is outweighed by fees, then it will cost you money.
All of the charities we listed above, plus a few more, will help you to set up and manage a DMP for free.
If you decide to go with one of the many debt management companies out there, make sure they are authorised by the Financial Conduct Authority (FCA). It may seem like an obvious step but it’s an important one!
A debt spiral is when you continue to fall further and further into debt. Despite making payments your debts continue to grow due to the interest applied to them. The hole you're in just keeps getting deeper and it feels like your only option for survival is to keep digging – sometimes even taking on new debts to pay off your existing ones.
There's no getting away from it; debt is a basic fact of life for most adults in the UK, but that's not always the catastrophe it sounds like. The day-to-day realities of mortgage repayments, student loans and credit card balances are something pretty much everyone deals with for large chunks of their lives. As long as they're under control, properly managed debts are an accepted part of the financial furniture.
The big danger of a debt spiral is that what you owe can keep on stacking up even if you're keeping up to date with your repayments.
How can that happen? Here's an example: suppose you're paying off a large, high-interest debt with hefty monthly repayments. Depending on your payment schedule, it's possible to find your repayments aren't even covering the interest piling up on what you owe—let alone bringing down the overall debt amount. Worse still, a lot of people end up taking out another loan to pay off the first.
Debt spirals often start small. For example, the debt you decided to take on might have been realistic at the time, but then your circumstances changed unexpectedly. You might have taken a drop in income, or had to cope with unexpected extra bills. Recognising when you're at the top of the helter skelter of a debt spiral is the key to pulling yourself back from the precipice—but if your situation changes suddenly, it can be easy to slip.
To put a few hard numbers on all of this, here's a breakdown of kinds of debts UK households were dragging around as of January 2022:
If there's one topic the UK hates talking about around the dinner table, it's money. The runner-up, though, is definitely mental health. If you're struggling with a debt spiral, there's no shame in reaching out for help. The problem is that so many of us don't feel that we can talk about this kind of thing. The Great British Stiff Upper Lip can do real damage when it puts people's mental health at risk. Stress, anxiety and depression can all go hand-in-hand with financial problems, and it's easy to feel like you're trapped with nowhere to turn.
You see this most commonly with households with lower average incomes. The lowest earners in the UK, for instance, are over 3 times as likely to have debts totalling over half their yearly income than the top-earning 20%. Looking specifically at people dealing with mental health issues, sufferers are 20% more likely to have debt problems. They're also twice as likely to be falling behind on general household bills and close to two thirds more likely to be tackling Council Tax arrears.
When it comes to mental health trouble, recognising the signs when you or others are suffering is so important.
Here are a few quick pointers:
Yes, that's a long list that we could probably all tick a few items off once in a while. The point is to spot the dangerous patterns of behaviour as they start, before you or the people close to you get swamped by them.
Getting out of a debt spiral is the same as pulling yourself out of a mental health slump. It's all about making reliable, manageable steps to solve the problems you're facing. The sad fact is there really is no quick fix for this kind of situation, and a lot of people end up stacking debts on top of debts looking for one.
Whatever other steps you end up taking to fix the problem the first should be to list out the debts you're actually carrying. For each of them, you'll need to factor in how much you owe, how high the interest is and what your monthly payments add up to. Armed with that information, you'll be in a much better position to deal with the trouble.
Next up, it's time to think about whether there's anything you can do to bring the cost of your debts down. You've got to watch your step here. Remember, if you think you've found a quick fix, you're probably heading into trouble. So, for instance, you've probably heard the old saying that you can't borrow your way out of debt. For the most part, that's true, but it's definitely not the whole picture. In the right circumstances, you can actually trade an expensive debt in for a cheaper one. Switching a credit card balance to a different provider with a 0% interest rate offer, for instance, will help stop the debt rocketing up for a while. Don't jump at the first easy-looking option you find, though. Grabbing a "payday loan" to pay off an urgent, high-interest debt could easily just spiral your troubles out wider.
Other things to check up on when you're sizing up your debts might include:
Once you've scouted out the size of your debts, it's time to set your priorities for paying them off. There are two basic approaches here: the avalanche or the snowball. The avalanche method starts at the top by throwing everything you can at the debt with the highest interest rate, while paying just the minimum monthly amount for the others. The up-side of this is that you'll end up saving some cash overall. The down-side, naturally enough, is that you're tackling the hardest part first and probably won't get much of a sense of progress until that first debt's gone. The snowball approach, on the other hand, starts smaller and builds speed over time. You pay down the lower-interest debts first to get rid of them altogether, then build up to the bigger ones once they're all that's left. Yes, you'll wind up paying those higher interest rates for longer this way, but it can still be more manageable option if you mental health's been suffering. Either way, it's important to have a plan so you never feel like you're throwing your cash randomly at a problem that never stops growing.
Basically, all a DMP means is that you've agreed a way of clearing your debts with your creditors. You commit to regular payments that you can stick to, paying off a small amount each month to the company organising the DMP. That company then divides the cash up between your creditors. You need to set up your DMP with a company that's authorised by the Financial Conduct Authority (FCA). They'll ask some questions about your financial situation and work out a plan, then ask the creditors to agree to it. Of course, there's a fee for this, along with a handling charge when you make your payments. You can check the details and work out if you qualify for a DMP here
If you owe under £30,000 in total, don't own your own home and have a low income, you can get a Debt Relief Order from the bankruptcy court. Essentially, what this means is that your creditors need the court's permission to recover what you owe them. Your DRO will restrict you in a number of ways, from preventing you from borrowing over £500 without telling the lender about your situation through to stopping you from starting a business without permission. If you can live with all that, though, you'll usually be declared free from debt after 12 months. For more details about DROs, check here .
This is the big one, the older brother of the Debt Relief Order. Like a DRO, you get some protection from your creditors in exchange for accepting some restrictions on your finances and behaviour. Your situation will be checked out by the Insolvency Service and your rights and responsibilities will be explained. You might, for instance, have to hand over bank cards or sell off some of your possessions to help pay what you owe. Despite this, bankruptcy is as much about protecting you as repaying your creditors. Stick to the rules and, after 12 months, you'll automatically be 'discharged' from bankruptcy and your remaining debts will be written off. See here for more.
The main point of all this is to show you that there's help available if you're struggling with the financial and mental fallout of a debt spiral. Here are just a few of the organisations set up to help with practical guidance and support:
No one wants to think about the money they owe when they’re going through a tough time in their personal lives. Sadly, though, around 2 out of every 5 UK marriages end in divorce – and a lot of those wind up lumping people with some severely messy finances to clean up. Most divorces happen while couples are in their early forties, which is a time in your life when you’re often dealing with some pretty hefty debts already. Yes, your kids might be leaving home about now, but there’s very little chance you’ve paid off your mortgage yet.
The thing is, when you’re stuck in the middle of a divorce you’re probably going to be dealing with a lot of complicated laws and regulations. When there are debts involved, getting everything settled correctly can make all the difference between a clean break into the next stage of your life and dragging the weight of your past along with you.
With all that in mind, let’s take a look at how you can make the best of a difficult situation.
Romance and fairy tales aside, the truth is that a marriage is a pretty complicated financial and legal arrangement between you and your partner. That means it can be tricky to unpick it all neatly if the sky falls in. If there are personal or household debts involved, it’s critical to sort out exactly who legally has to shoulder them. There might be joint accounts and credit cards to consider, for instance, or loan and mortgage repayments to keep up. Those debts don’t magically go away just because you’re no longer married. If your name’s on the agreement, you’re still at least partly responsible by law for paying off what’s owed – even if you’ve got some kind of informal understanding about it with your ex-spouse.
There’s another side to that coin, of course. Even if you’ve been stumping up for your partner’s debts for years, if those debts aren’t actually in your name then they’re not automatically yours to carry after a divorce. When you go through the official divorce process, this is something that the court will look closely at.
Simple so far, right? Well, maybe not. You see, the court will have to weigh up a lot of complicated factors when deciding how your household finances get settled. It’s not always as cut-and-dried as looking at whose name’s on an agreement. For instance, if one of you has run up a debt for something that both partners have benefited from during the time you were married, factors like that can play heavily into the final decisions about who owes what.
It can be difficult to untangle yourself from joint debts when you’re getting divorced, particularly big loans and mortgages. After all, a lender’s not going to want to let you off the hook just because your marriage ended. Depending on your lender and situation, you might be able to arrange to separate the terms of a joint loan, but it’s not safe to count on that being possible or practical. The better solution, awkward as it might feel, is to talk it over with your ex-spouse and agree on a fair way to handle the repayments. You’re in each other’s hands a little bit here, since if the courts decide you’re jointly responsible for paying off a loan you can’t simply wash your hands of your ex-partner’s share of the repayments. If they fall behind on coughing up what they owe, it’s not just their own credit rating that’s being put at risk. As unfair as it sounds, even paying your end of the loan reliably isn’t enough to protect you if your former other half doesn’t do the same.
It’s worth remembering that you’re not fighting against each other here. It’s in both of your best interests to tackle your joint debts responsibly. You might decide to open a joint account to make the repayments from, for example, or for one of you to pay the whole amount and get the other to reimburse them for their share with a standing order. It’s up to you both to decide how to handle things, but it needs to be done properly and cooperatively if you’re hoping to keep clean credit ratings for the future. If it looks like there’s going to be a problem for either of you, it’s worth getting in touch with your lender as soon as possible. You might be able to sort out an easier payment schedule with them.
Divorces can be incredibly stressful, and there’s a strong link between debt and mental health problems. Remember, it’s not just your financial well-being at stake here. Take a look at our other guide, Mental Health and Finance, for practical ways to look after yourself when debts are looming.
As far as protecting your money goes after a divorce, there are a few simple step you can take to make things a lot safer for you both. One of the most important is to protect all your legal rights involving your home. Unless your divorce was an extremely amicable one, you’re unlikely to both end up living under the same roof. Depending on your situation, you might want to look into changing the ownership of the property, or ‘registering your interest’ in it if your name’s not on the mortgage – which would at least mean it couldn’t be sold on or re-mortgaged without you knowing.
Of course, there’s nothing preventing you from continuing to own the property together, even if only one of you is using it. The trouble is, if you were to die, your ex-spouse would almost certainly end up inheriting the place outright – which is something you may or may not be happy with. Explaining your situation to your mortgage provider is a smart move however things end up. Again, remember that paying off joint loans like this remains the collective responsibility both ex-partners in a lender’s eyes. You don’t suddenly only owe half as much just because you got divorced. If you’re renting, you’ll obviously want to talk your landlord through your change in circumstances. Again, depending on how you’re fixed, you might decide to get one of you taken off the agreement.
Next, you should think about any other joint finances you share with your ex. Talk to your banks, lenders and providers to set up arrangements to protect you both. For instance, you could change the terms of any joint accounts so that neither of you can take cash out without the other’s permission. If you’re getting your income paid into an account your ex has access to, you’ll probably want to change that, too.
Finally, you should get your credit report altered so it’s no longer tied to your ex-spouse’s. Being married doesn’t necessarily create a ‘financial link’ between you, but if you’ve bought or rented property together or set up any joint finances then your ratings can affect each other. To cut those ties, you’ll need to talk to the credit reference agencies and provide proof that your finances are no longer linked. You can read more about credit scores here.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Before you even get off the house-buyer starting blocks, you’ve got at least one high hurdle to get over, and that’s the deposit you’ll need. Deposits are simply the down payment you have to make up-front before you can kick off your mortgage. Depending on your mortgage agreement, you could be looking at fronting up a minimum of 5% of the property’s value from the outset – but in many cases it’ll be a lot more.
There’s a careful balance to strike when you’re picking the right mortgage deal for you. The more you can save up as a deposit, the lower your eventual mortgage payments will work out. That means you’ll own your home outright sooner and have to pay less interest along the way. However, deposits can be a serious challenge to budget around, and a lot of first-time buyers feel like they’ll never be able to sock away enough to get a foot on the property ladder. See our guide, “6 Ways to Save for a House Deposit ” for more on this. For now, though, the government’s own mortgage guarantee scheme’s here to make things a little easier. If you qualify for it, you can put down as little as 5% up-front, with the scheme kicking in up to 20% of a newly-built property’s value (or 40% if it’s in London).
A P45 is form showing how much PAYE tax you’ve paid in the current tax year. You’ll get one of these from your employer when you stop working for them, which may be part-way through a tax year.
A P60 is an end-of-year certificate showing all the taxable income you’ve made and the PAYE tax and National Insurance you’ve paid on it for the whole tax year. It also includes details of your Student Loan repayments.
This is another cool hack for shopping online. If you’re not keen on cashback sites or can’t find what you need there, a simple browser plug-in can do a lot of your bargain hunting for you.
Here’s how it works. Wherever you shop on the web, with a discount code extension installed your browser will give you a heads-up on any discount codes it can dig up for you. The Honey extension, for instance, works with over 30,000 sites and automatically applies the best discounts it can find to your online shopping cart. Combine that with some basic impulse control and you’ve got a reliable winning strategy for saving cash. Obviously, you do still have to stick to buying only what you need. After all, no discount will ever leave as much money in your pocket as not making the purchase in the first place.
If you’ve got the skills, taking the DIY route is absolutely the best way to cut down the cost of your home repairs. In fact, the longer the job takes, the more you’ll end up saving over the span of the work. That cost reduction frees up more of your overall budget to go into things like better materials – or simply back into your pocket. Keep in mind that you do need to be up to the task if you’re planning on doing all the work yourself. The UK is a nation of have-a-go heroes when it comes to DIY, and over 60,000 of us end up in hospital in an average year as a result. A single typical botched home repair ends up costing an extra £200 to fix, meaning a lot of us are paying more in the end than if we’d called in the professionals in the first place.
Don’t worry if you’re not an expert, though. You can still cut down your labour costs with a little advance preparation. Labourers charge hourly rates, and not all the time you’re paying for is spent on the most technical parts of the work. Even just tidying up and prepping the workspace ahead of time can save you money.
Sadly, the answer is a resounding yes! Depending on your situation, you could find yourself paying a few different kinds of tax as a student. Here are a few examples:
We’ve already talked a bit about this above but, even when you’re a student, when there’s money coming in the taxman wants his share. What you pay depends on what you earn in a year:
If you’re sharp-eyed, you’ll spot that you can actually earn a fair bit of cash before you start paying any tax on it. The Personal Allowance is the tax-free chunk of your earnings, and at £12,570 it means that a lot of students won’t have to pay Income Tax at all! Again, though, that doesn’t mean that HMRC won’t dip its fingers into your pocket. Remember we talked about National Insurance? Well, here’s what that looks like:
This is still broadly lumped under Income Tax, but it’s worth mentioning separately. Students are usually in the Basic Rate tax bracket, and the rules say that means they can earn up to £1,000 of savings interest tax-free a year. When people earn enough to pay Higher Rate tax, that allowance drops to £500 a year.
Not everything you buy is eligible for VAT. When it is, the tax is simply lumped into the price tag so you don’t have to do anything (other than decide if you can still afford it). If you’re running your own business, you sometimes have to register for VAT and start charging it to your customers. You can then claim back the VAT you’re paying on some of your business costs. You won’t need to bother about this until you’re earning over £85,000 (as of 2019/20), so for most students it won’t be an issue.
Council Tax is charged on pretty much all UK properties, from mansions to caravans. It’s based on the value of the property, but there are some important rules for students to understand:
Read our guide: Council Tax Debt
Okay, so you won’t actually pay tax on your loan as if it were income, but the chances are you’ll be paying it off through the tax system. Again, there’s a threshold involved – meaning you won’t have to pay any of your loan back if you don’t earn enough to qualify. The threshold depends on the kind of loan you’ve got.
For 2019/20:
As for how you’ll be making those repayments, it all depends on the way you pay your normal tax. If you work for an employer, you use PAYE. If you’re self-employed, it’ll be in your Self Assessment tax returns. Some people might actually be both, meaning they’ll have to use both systems. They won’t end up paying double, though. The payments made through PAYE count against your Self Assessment tax.
Postgraduate loans are slightly different. For these, you start paying once your earnings hit £21,000, and on other income over £2,000 a year that you’re declaring via Self Assessment.
The Universal Credit (UC) system doesn’t really care if you’re a student or not. You’ll still have to meet the normal criteria to qualify for it. If you’re studying full-time, you’ll need to fit one of the following descriptions to claim:
If you only study part-time, you might still be able to qualify for UC. There are a few other hoops to jump through, though, like being available for work. Either way, if you’re earning money while you’re a student, it can bring down the UC you can claim. That’s worked out based on the income you’re making minus a fixed amount to allow for expenses.
You apply for UC online, and you’ll be expected to provide some basic information about yourself and your circumstances (contact details, banking and financial information, etc.). You might have to ring up to book an appointment with a “work coach” - and won’t get your UC if you miss it!
Your personal tax specialist will get to work on your refund.
As they prepare your claim they might need to ask you a question or two to make sure you get the most from your refund. They’ll always try to call first and if they can’t get through they’ll send you an email or text from 01233 628648 so save that number in your phone.
If there’s a particular time you’d prefer we try to contact you, just let us know.
We'll now send these to HMRC.
It takes HMRC, on average, approximately 12 weeks to process these forms and release your refund (times can vary). We'll make sure we chase them during this time.
As soon as HMRC release the refund we'll contact you to confirm sending you your money.
We'll keep you updated if HMRC take longer than anticipated.
In the meantime keep good records of your travel and refer your friends to us to earn additional money.
If you're self-employed in the healthcare sector you may still be owed money. The difference is that you can’t claim a PAYE tax rebate, since you’re outside of the PAYE system. Instead, you’ll record all your essential expenses in your yearly Self Assessment tax return. Those costs, which you’ll still need to have detailed records of, will then bring down the amount of profit you’re being taxed on.
Remember, the good habits you’ve built while saving for your new home don’t lose their benefits once the ink’s dry on your contract. Even after you’ve hit your goal and moved in, there’s still a lot to be gained from keeping your saving system going. Ideally, you’re going to want to stick to the 50/30/20 rule we mentioned before. That 20% you’ve got used to socking away is going to develop into an amazing investment in your own future if you stick with it.
Our standard charges are:
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (still included in the cost) and if anything did go wrong (which it never has in 15 years) we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
Does it apply to me?
The short answer is "yes".
While many people get their travel and work expenses reimbursed by their employers those in the Armed Forces, Construction Trades, Security and Offshore industries often don't.
To get the money back you have to put in a claim to HMRC to show what you've spent so they know how much to pay you back.
Sadly many people, 2 in 3, who are owed tax refunds don't claim them back - meaning they are losing a chunk of their wages.
It's our mission to improve knowledge about this so that all workers who should be claiming are claiming.
We know what it's like - time flies and it's hard to find a moment to get round to things.
The good news is, we take care of everything for you - the whole reason we do what we do is to take the stress off your hands and give you time back as well that hard earned cash.
All it takes is 10 mins on the phone or chat to get an average of £2,500 refunded. That's got to be the most valuable time you could spend on your phone today.
Once we've got your info we do all the chasing, calculations, sorting out the payments - and that's before we even get to our all inclusive aftercare!
Yes - absolutely! If you've paid too much tax, you're fully entitled to a tax rebate.
Travel and mileage tax refunds for travel to temporary workplaces are claimed under Income Tax (Earnings and Pensions) Act 2003, sections 336-339.
There's over 1000 pages of rules and regulations but our experts will get it sorted for you. They have qualifications from the Association of Tax Technicians, Associations of Accounting Technicians, and The Association of Chartered Accountants. Having these qualifications mean they are bound by all its rules, regulations, ethics and codes of conduct in addition to our internal standards.
HMRC can't issue automatic refunds for Work and travel expenses because it's not based on information they have - like your salary or tax code. You have to prove what you've spent and claim what you're owed, which puts far too many people off getting back their own cash.
I'm not sure I have the info?
To make your claim the key things we need to know are:
We have access to a number of specialised custom built systems that link to HMRC, Government depts, DVLA, travel routes, etc and can get the information for you.
I don't know anyone who's done it.
You're absolutely right to be cautious. There's a lot of scams to be aware of and a word of mouth recommendation from someone you trust is the best way to be sure.
We don't know who your friends are, but if they're in the Armed Forces, Construction Trades, Security or Offshore ask them if they've used us. 97% say they would recommend us.
A lot of people have - we've helped 130,000 customers make claims in the last 20 years - but British people don't really talk about money so it's not something that tends to come up in conversation.
Otherwise, check us out on Trust Pilot. It's the next best thing.
First we need to talk to you on the phone or online run through some questions about your work and travel and tell you how a claim is made.
If you would like to claim for you we send you a form to sign that lets us talk to HMRC on your behalf to do that.
We'll then give you your own Personal Tax Specialist who will gather all the information needed to calculate exactly what you're owed.
We send you the total to approve the amount and what our fee comes to and then submit it to HMRC for you.
You don't pay any fees upfront. To make it simpler for you we take the fee from the refund total and then pay it into your bank account.
Another tip is to look again at the numbers you crunched when you set up your 50/30/20 budget earlier. While your rent definitely went on your “essentials” list, if you can move to a place that costs you less while you save for your deposit, you could hit your goal much faster. Shaving £100 of your monthly rent, for instance, would see you saving an extra £1,200 a year.
It actually goes a little further than that. If you move to a smaller place while you save, it’ll probably cost a little less to run. Your energy bills will be lower, for one thing, along with your Council Tax.
Read guide: Dealing with council tax debt
Another option is to look into a “property guardian” arrangement. Some property owners will put a roof over your head in exchange for you looking after the place for them and keeping squatters out. Failing that, even just renting a room from a homeowner can mean a significant boost to your saving potential. Some people - particularly older homeowners - will charge you very reasonable rents in exchange for helping out around the house or running a few errands once in a while.
Draught proofing your home could be worth a decent chunk of change at the end of the year. It’s one of the simplest things you can do to cut down the heat you’re wasting, too. While it’ll probably cost a couple of hundred pounds to get your draught proofing done professionally, it’s not that hard to do if you’re into your DIY.
You should think about your windows, obviously, but there are plenty of other ways to stop letting the warmth out. Your front door’s an obvious culprit, from the gap underneath to the keyhole and letterbox. You should also take a look at your pipework, loft hatches and even your chimney. If you’re not actually using your fireplace, just draught proofing your chimney could save £18 a year on its own.
You might well find yourself on an emergency tax code if your new employer can’t check your P45. If this happens, you’ll see one of these codes on your payslip:
These codes are only ever meant to be temporary, so it’s a good idea to get your proper tax code sorted out as quickly as possible.
Sometimes, you might get your tax refund handled automatically through the PAYE system. If HMRC already has all the information it needs to work out how much tax relief you’re owed, then they can alter your tax code to make sure you end up only paying the tax you actually owe. There are a couple of potential hiccups with this system, though. For one thing, HMRC can only refund you the tax for any work expenses they already know about. When you travel for work, for instance, HMRC won’t automatically know how much mileage you’re doing or what other costs you're running up just to do your job.
The other problem is that your work expenses will probably change from year to year. When HMRC changes your tax code, it assumes your work costs will always stay the same. That means you’ll probably end up on the wrong tax code – which is something you really want to avoid. In either of these two cases, you’ll need to make a full tax refund claim to get back everything HMRC owes you, and you’ll need to get your tax code fixed quickly if it’s wrong. Thankfully, this is something that RIFT will automatically take care of for you when we sort out your tax refund paperwork. There’s no extra charge for this; it’s all part of the RIFT service!
No, if you aren't footing the bill yourself you can't claim back tax on the costs.
There's another little wrinkle here, too. Suppose your employer has provided you with a laundry room, but you don't like to use it for some reason. Maybe the machines sometime chew your socks up, or maybe the place just smells funny. Either way, the fact that those facilities exist means that you can't claim a uniform tax rebate. Likewise, if you're getting reimbursed for your costs already, you can't claim for them.
Another important point is that employers sometimes arrange to sort out tax relief on your behalf. In those cases, you obviously can't claim it again. However, not everyone realises that the arrangements are already in place when they make their claim. Fortunately, the taxman understands how this can happen. Probably the worst you could expect is a polite letter from HMRC explaining why your claim was denied. Obviously, it's still better not to make the mistake in the first place, though.
Your main thermostat isn’t the only way to control your heating system, and not every room in your home is going to need the same amount of heat. Depending on your situation, this could be as simple as turning down the radiators in rooms you’re not using much. Closing doors to rooms you’re not using can make a difference too. The Energy Saving Trust say, if you’ve got thermostatic radiator valves you could save even more. Fitting these could save you £75 a year.
If you’re looking for more ways to take some of the financial pain out of buying your first home, you could do worse than to look into the Help to Buy Equity Loan system. This is assuming you’re actually buying a place to live in, rather than as an investment or second home. The rules for these loans say you have to front up at least a 5% deposit, but can then borrow up to 20% (40% in London) of your new home’s market price, interest-free for 5 years! The rules have a few wrinkles in them that it’s worth keeping in mind, so check out the gov.uk site for more details.
Estate agents tend to base their charges on a percentage of the sale price of the property they’re handling for you. This means you’re typically looking at a fee of 0.75% to 3% of the property price plus VAT. This can vary depending on the type of contract you’ve got with them – so again, go in with your eyes open so you don’t get caught unawares by this.
You've got a few options to match what you're hoping to do with them:
While we’re talking about draughts, a few decent excluders will go a long way toward making the most of your energy use and cash. Draught excluders can help shore up the savings when you use them alongside your basic draught proofing. They’re easy to get hold of – or even to make yourself. Just a large piece of fabric stuffed with rice can make a decent enough excluder. You’ll need to think about where you use it, though. Draught excluders can be great at their job, but they’re only as good as where you put them. Stick one under a door, for instance, and it’ll be next to useless the first time someone opens it. Better to use an inexpensive weatherbar or brush strip in those cases. They’re attached to the door, so they won’t get nudged out of position when it moves.
Gym memberships always seem like a good investment at the time. You’ve put your money where your mouth is, now all you’ve got to do is stop filling that mouth full of chips, right?
The trouble is, with any investment, you’ve got to think about the returns you’re getting. Suppose you hit the gym 3 times in a month on a £30 membership scheme. That’s £10 per visit – and you’re paying the same even if you never set foot through the door!
Instead of pricey subscription packages, invest in a cheap set of weights or resistance bands. You can get them easily online, and YouTube is packed with free exercise tutorials you can follow from home. No monthly fees, no travel costs to factor in and nothing to stop you reaching your financial fitness goals.
This is crucial. Don’t assume you’ve anticipated every cost or problem you’re going to run into. When you’re building a budget around home repair bills, you’ve got to expect that you’ll hit snags or delays along the way. Sometimes, all they’ll end up costing you is time – but you can’t afford to count on that. If you find yourself needing to add work-hours or extra materials to the job, you’ll feel the pain of them in your wallet – and you’ll be glad you allowed some breathing space in your budget just in case.
If you’re claiming for more than £2,500 in work expenses, HMRC will expect you to send them a Self Assessment tax return to claim your tax refund. As always, RIFT will take care of this for you when we handle your HMRC tax rebate. We’ll get you registered and make sure your tax return’s filled in and submitted correctly.
A “tied” adviser, is someone who really only handles products from a single supplier. You can expect them to have detailed knowledge of that company’s products, but you probably won’t get a full picture of the alternatives available elsewhere.
A “multi-tied” adviser, is similar to a tied one, but will be able to help you with a wider variety of suppliers and options.
A “whole-of-market” adviser, is someone whose advice would cover a much larger range of providers and products. These are similar to Independent Financial Advisors in a lot of ways - but not all, as we’ll see in a moment.
Pensions can be kind of a scary business sometimes and, in a few important ways, they’re a lot more complicated than they once were. You’re making big decisions when you plan for retirement. You’ve got a huge responsibility, and your choices can affect more than just your own future. Even if your money situation’s fairly simple, you could easily be looking at spending decades in retirement, so you’ve got to find a way to make your savings last.
So, where do you go to get solid, trustworthy advice when you’re heading toward your last few working years? More to the point, what’s it going to cost you? Here’s a basic breakdown of the kind of help you can find, and a few ideas on how to pick an adviser that suits your circumstances.
Good question – and not always an easy one to answer.
It’s obviously best to go into any major money decision with good advice. That’s just common sense. Even so, paying for an Independent Financial Adviser (IFA) to look at your situation may not always be worth it.
Don’t get us wrong – there are plenty of reasons to talk to a financial adviser. You might find yourself in an unusual or complicated financial position, for instance. Maybe you need help setting goals or understanding the risks of investing. On the other hand, if you’ve got relatively simple needs and plans, flushing a load of cash away on an adviser might not be a good foot to set out on in retirement.
Generally speaking, the less money you’re playing with, the less help you’ll probably need managing it. However, every decision you make will matter – so again, blowing a ton of cash on professional advice may not be the smartest move up-front.
So, how much money are we talking about here? Obviously, there’s a range of prices on offer for financial advice services, so a lot depends on where you’re looking and what you’re asking for. Also, it’s easy to get wrong-footed at the start with offers of free first consultations. By all means, take advantage of these, just to test the water. Keep in mind, though – you could well be looking at a sudden bill of up to £500 the next time you set an appointment.
Once you’ve picked an adviser (and a price) you’re comfortable with, you’re probably going to find yourself staring facing an hourly rate for your actual advice. Prices for this kind of help can feel pretty steep if you’re not prepared. We’re talking in the range of anywhere between £75 and £350 an hour here, with £150 per hour being a reasonable average to expect.
Things change if you’re looking for more of a “hands-on” style of financial help. For instance, you might need your adviser to take more of a long-term role in handling how your retirement money’s invested. At this point, the costs involved will largely depend on the size of the portfolio you’re playing with (basically, what’s in your investment “basket”). Typically, you’ll be charged a percentage of the total value of your investments. Again, there’s a range of prices for this kind of direct management, but you’re probably looking at somewhere between 0.5% and 5%.
The bottom line of all this is that the kind of advice you need with your retirement savings – and the price it’s worth paying for it – will depend on what your actual goals are. If you’re still thinking about that, we’ve put together two articles to help point you in the right direction:
So, right now you’re probably wondering what you’re actually getting for all this money. Maybe it’s even starting to look like it’s not worth paying an adviser in the first place. The thing is, getting professional advice on your pension can genuinely be a financial life-saver. In fact, there are times when it’s actually a legal requirement.
The first thing to realise about choosing your adviser is that there’s a world of difference between the real professionals and the dodgy financial “cowboys” out there. The choices you end up making for your retirement cash will only be smart if the advice you took when making them was good.
You do have a fair bit of protection to fall back on, in the form of the Financial Conduct Authority (FCA). The FCA actually has a list of “dodgy dealer” financial advisers you should absolutely avoid, along with a page for reporting any scams or scammers you might run into. There’s a limit to how protected you can be, though. While the FCA’s general rules about how an adviser conducts its business cover all IFAs in the UK, that doesn’t mean they have to keep your best interests at heart in everything they do. Here’s where things get a bit technical – but bear with us for a minute. Financial advisers in the UK aren’t strictly required to stick to “fiduciary standards”. These are basically a set of rules that determine how trustees (people making financial decisions for someone else) take care of the assets of beneficiaries (the “someone else” – in this case, you). IFAs aren’t technically bound by these standards, but the FCA is still constantly pushing to make things safer for you. So, what about the times when you absolutely have to get financial advice? Are you protected then? Take pensions, for example. If you’re trying to transfer a pension that’s worth over £30,000, the law says you need to get advice on the process. Your financial advisor has a responsibility to stand behind the advice they give. When that advice falls short, there are complaints procedures and systems of compensation to help you limit or undo the damage.
It’s worth keeping in mind that the term “financial adviser” isn’t just describing one thing. Depending on what you’re looking for and where you’re looking for it, you might end up talking to a range of different ones.
Another thing to remember is that most advisers you’re dealing with will be looking after their own money as much as yours. Almost all of them will be taking a commission from the providers you end up choosing based on their advice. Yes, they might well be taking your money in exchange for steering you in the right financial direction. You won’t be the only one who’s paying them, though. While that may be obvious enough when you’re talking to a tied adviser, it’s also true of the whole-of-market ones. They’ll certainly want you to be happy with the choices they offer you – but they’ll have financial goals of their own to look after, too.
In the investment world, you can see this kind of thing in action pretty clearly. When choosing between “active” and “passive” investments, you’ve likely to see an investment manager being held up as a big selling point of actively managed funds. It makes sense, after all. Having an expert directly looking after your investments can only be better than going it alone, right? In fact, when put to the test, about 90% of the “passive” index tracker funds that were measured performed better over 20 years than the actively managed ones. Even over just 3 years, there was no real benefit to active investments. Basically, you could argue that investment managers can sometimes be more interested in what makes them money than in what gives your investment the best chance of growth.
So, let’s look at IFAs again. As we mentioned above, they’re not that different from whole-of-market advisers, since they’re not tied to any specific company. That means they can give you the widest possible range of advice. Yes, some of them will still get a commission when they steer you toward specific options or providers. That’s not true of them all, though. Some IFAs do work purely for the flat-rate fee they charge you for their time, effort and expertise.
By and large, an IFA will offer the most custom-built advice, factoring in your full personal situation, plans and goals. This is true whether they work for a larger IFA company or are just in business for themselves. If you’re looking for a truly independent opinion on how to sort out your retirement finances, then this is probably your best chance of getting one.
When you’re setting off on any kind of journey, you need map of the territory and a route planned out. If you don’t start with a clear picture in your head of where you’re trying to get to, you’ll never know whether you’ve made it there or not.
Planning out your financial goals isn’t nearly as difficult as it probably sounds. All you’re doing is setting your sights firmly on the future you’re trying to build. After that, it’s just a matter of stacking one brick on top of another until you make it. There are bound to be a few obstacles to negotiate along the way. In fact, you might find yourself having to revise the goals you originally set out with as your circumstances change. Even so, good planning right from the start will mean you can keep on making progress even when things are stacked against you. Whatever your goals turn out to be, knowing up-front what you’re trying to accomplish will make every decision you take a long the way easier. Before you know it, you could well find those original goals were a little too cautious. That’s when you know it’s time to start thinking bigger...
It’s tough to make big plans for the future when you’re only just getting by right now. Not every financial goal you set for yourself has to be some grand scheme that might take decades to pay off. For instance, getting the earliest possible start on setting up your retirement is definitely a smart idea. However, you’ll probably need to work your way through a bunch of simpler, more immediate goals to get there.
Your short-term goals are mostly going to revolve around the simple necessities of getting safely through to the end of the month. This basically falls into the category of day-to-day household budgeting – which you can read more about in several of our other guides, like these:
There’s a lot more to short-term financial planning than watching your everyday spending, though. Your near-future goals could easily include larger targets, like saving up a deposit for a home or buying a car. When we talk about long-term plans, we’re including things like clearing your mortgage, shoring up your retirement funds and raising kids. These are projects that will probably take many years or decades to complete, but unless you set yourself some eventual goals to hit and plans you can stick to, it’ll be difficult to make any serious progress toward them.
The main point of dividing your plans up into the short and long terms is to help you stay realistic about what it’s going to take to get you there. It’s all too easy to give up way too soon on a target, simply because it seems like such a huge mountain to climb. However, just making a little regular progress toward the summit is all it takes to succeed if you’re realistic about the pace you can keep up over the long haul.
LISAs aren’t the only government system set up to help first-time buyers. For instance, the First Homes scheme (only available in England) can offer what are basically discounts of 30%-50% on the market value of your first home. There are a few limits on who qualifies for this, of course. You have to be 18 or over, a first-time buyer and your total household income can’t be more than £80,000 (or £90,000 in London). There are a few other twists and turns in the rules, and some councils prioritise certain types of buyer over others, but it’s definitely worth looking into if you think you might qualify. You can find all the basics on the gov.uk site.
Another smart option if you’re having trouble putting the cash you need together is to opt for a shared ownership arrangement. This is another scheme built to help first-time buyers grab that all-important first rung on the property ladder. Essentially, what you’re doing is buying a share (10%-75% of the total value) of a property from its landlord. A lot of the time, this will be a council or housing association. You then pay monthly rent at a reduced rate. You’ll still need to arrange a mortgage to buy that initial chunk of your new home, but it should be a lot more affordable than buying it outright from the start. As time goes by, you can gradually increase your share of the property until you own the whole place.
When you think of the main costs of buying your first place, your monthly rent and mortgage payments are probably the main things on your mind. There are a lot of other costs to consider, obviously, but we'll tackle these first.
Average rents charged in the UK are sharply on the rise. As of June 2022, for example, a standard rental agreement would run you £1,113 per month. Just 12 months before that, though, your rent would've been over £100 cheaper at £1,007. Obviously, the averages here won't give you the full picture on their own. A lot depends on the type of property you're talking about, for one thing. Also, rental rates can vary pretty widely across different regions in the UK. If you're renting in the Greater London area, for instance, you're probably going to get hit with much higher monthly payments. The average there is closer to £1,846 a month. Compare that to the North East, where the figures are typically much lower, and you'll see average monthly rent drop right down to £588.
Recovery from the economic chaos of the COVID-19 pandemic, along with a number of other global issues, has thrown a glaring spotlight on utility bills in the UK. There's basically been a huge shockwave echoing through the energy market, knocking great lumps out of family finances up and down the country. As of June 2022, average UK households were blazing through £1,971 per year for their gas and electricity bills, with price cap revisions by Ofgem threatening to send them skyrocketing even higher. That figure was already 54% higher than before the price hike, driving a shocking number of energy customers to decide between heating their homes and feeding their families.
There's a lot of ground to cover when you start looking into energy costs, so take a look at our other guide, "6 Easy Ways to Save on Gas and electric Bills" for more.
Council Tax is an example of a really high-priority cost that you absolutely can't afford to let slip. Your local council has a whole range of ways to make your life uncomfortable if you don't pay up. Depending on how deep in debt you end up, that could mean getting a knock from the Bailiffs, having deductions taken automatically from your earnings or even bankruptcy or criminal prosecution if the trouble drags on long enough.
Council Tax works by charging you a rate loosely based on the value of your home (or at least its value back in either 1991 or 2003, depending on where in the UK you live). Council Tax bands are rated from A to H, with A being for the least expensive properties and H for the most. Here's what the bands look like in England for 2022:
|
Council Tax Band |
Property Value |
|---|---|
|
A |
£40,000 or less |
|
B |
£40,000-£52,000 |
|
C |
£52,000-£68,000 |
|
D |
£68,000-£88,000 |
|
E |
£88,000-£120,000 |
|
F |
£120,000-£160,000 |
|
G |
£160,000-£320,000 |
|
H |
More than £320,000 |
Whichever band your property ends up in (and keep in mind you can kick up a fuss if you think you're stuck in the wrong one), your overall Council Tax bill gets cut into 10 monthly chunks, which you pay off from April to January with a 2-month holiday from February to March.
For more on Council Tax, including advice on bringing down what you owe and coping with debt, see our guide:
Now, with most of the big stuff out of the way, we're getting into the gritty details. You're going to need to get your new home hooked up to the internet, with a decent phone service (although it's getting less unusual for households to ditch the landline entirely, since they're paying for mobile access anyway).
Average broadband costs can vary a lot, depending the package and extras you pick. A basic ADSL set-up, for example, will probably run you around £28.33 per month, with your home phone service coming as part of the deal. If you need a faster connection, you could be looking at closer to £39.75 for a superfast fibre connection (again, with your phone line rolled in), or even up to £61.90 per month for the fastest services with landlines included.
Service charges are fees you stump up to your landlord when you're renting your home. They're supposed to cover all the basic services your landlord has to provide, which should be spelled out in your lease. The amount you actually end up paying could vary from year to year, since your landlord's costs will probably change over time. Service charges are typically divided up between the leaseholders, so make sure anyone you're sharing the rent with understands what their chunk of the overall bill is.
So that's a broad overview of the basic costs you need to keep in mind when you're preparing to move into your first place. It's a pretty huge topic to cover, and we've only scratched the surface of some of it. For more information, you should definitely take a look at our guides, "The Hidden Costs of Buying a House" and "How to Save for a House in 5 Years". There, you'll find tips on tackling everything from Lifetime ISAs and deposits to Stamp Duty and removal costs.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
If you’re not going to need access to your savings cash for a while, you might consider opting for a fixed-rate cash ISA. These accounts pay out a pre-determined rate of interest over an agreed term. The interest you’re offered will probably be higher than you’d get with something like an easy access ISA, but you’ve still got to consider whether inflation will mean you’re actually losing money overall.
Opening a fixed rate cash ISA is pretty simple. You load it up with money up to a set limit, with your interest coming in either at the end of the fixed term or on a yearly or monthly schedule. The actual interest rate you get with one of these ISAs can vary according to the length of time you’re happy to lock away your cash. Typically, longer terms offer better rates, but the differences can be pretty minor.
Obviously enough, putting your savings into a fixed term ISA means it’s a lot less easy to get hold of it in a hurry. If you take your cash out before the term’s up you can find yourself hit with penalties. Also, since your interest rate is fixed when you open the ISA, you won’t see the benefit if rates go up more generally. Even if you rate’s decent, as we mentioned earlier, if it’s outpaced by the rate of inflation you’re going to find your savings dropping in real-world value. When inflation’s high, even the top interest-paying ISAs are going to struggle to keep up with the rising cost of living.
So overall, fixed rate cash ISAs are a pretty stable choice if you’re not ready to risk your money on a stocks & shares one. When the financial climate’s in your favour, they pay out reasonably well. On the other hand, when interest rates are low and inflation’s high, they really don’t stack up against other options.
Switching your energy supplier is often called out as a smart way to bring your bills down – and there’s a good reason for that. Sticking blindly with the same company without shopping around for better deals is a short-cut to overpaying for your energy. For one thing, if you’re on a limited-term fixed tariff and that term runs out, you could easily find yourself shunted into a much more expensive variable rate automatically. That’s a trap loads of people fall into without ever realising.
Shopping around’s a good idea before making any big decision. When you open a new bank account, for instance, you could grab all kinds of bonuses for signing up, from cashback to special savings rates. With your gas and electricity suppliers, though, it’s worth understanding the way the system works before making your mind up.
When Ofgem, the UK’s energy regulator, bumped up the maximum rate companies could charge you, suppliers basically fell over themselves to raise their rates as much as they legally could. This meant that, for people whose fixed rates were expiring, Ofgem’s price cap was the cheapest rate they could shift onto wherever they looked. Overall, average UK households found themselves looking at bills of £1,277 per year (or £1,309 for those on pre-payment deals).
So by all means, hunt around to see what deals are on offer. Just keep in mind that locking in a fixed rate doesn’t always do as much as you’d hope to save cash when energy prices start soaring across the board. You’ve got to make some changes of your own to make the most of your money – and that starts with understanding how much energy you’re actually using...
Okay, stick with us because this one sounds a bit odd at first. Take your spare cash and stick it in an envelope each month. We overspend so often because it’s being made too easy for us. Ditch the digital purchases and go cash-only for anything outside your essential outgoings.
We can easily get detached from what we’re actually spending when we use cards. Now, instead of waving your plastic at a machine every time you go to the pub or cinema, you pull cash directly from your envelope. This guarantees you stay inside the limits you’ve set for buying non-essentials.
Having an actual running total of your budget in your hands is a great way to keep track of your spending and stick to your goals. As your envelope gets lighter, you know to slow down. At the same time, because you’ve specifically set it aside as fun money, you know that every pound from that envelope can be spent with a clear conscience without blowing your budget.
Even once you’ve moved all your existing stuff into your new place, you might not be finished. Maybe you’re moving into a bigger place than before, so your old furniture’s no longer fit for purpose. The previous occupant of the place, assuming there was one, probably won’t be leaving much of their own stuff behind, so remember to add in the costs of anything extra you need to buy to flesh out your new living space.
It takes a few weeks to put together a really comprehensive tax refund claim. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. It can take 8-10 weeks for the taxman to check your details and confirm your refund total, so the sooner you get us the information we need the sooner you'll have your money.
The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. This is the form that lets us tackle the taxman on your behalf. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. It's annoying, but it's all about protecting you.
As soon as your refund's paid out, we'll either send you a cheque or pay it into your bank account if you prefer. The choice is yours.
Have a look at our 'How Long Does A Tax Refund Take' page for more information about how long it takes to get your tax refund done and some pointers for how to make things happen as fast as possible.
Remember that you can claim for the last 4 tax years and you can make your claim at any time.
Please do!
Not only will you be doing them a big favour if you can get some cash back in their pockets but we'll pay you a £50 referral reward for anyone who does go on to claim through us.
Until the 9th of October we'll also pay you an extra bonus of £150 if 5 people claim with us (T&Cs apply)
If you tell them to apply now they'll get their tax refund in time for Christmas and you'll get something extra to stuff in your stocking. That could be £400 in your pocket as well as the warm glow you get from helping out your mates.
To get started:
Not sure which friends could claim? Find out more about who can claim tax refunds.
There's no limit to the number of people you can refer and we pay out the rewards every week. It could be a nice little extra in your pocket, as well as the lovely warm feeling you get from knowing you helped out a mate.
Find out more about the referral scheme.
In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". What it's definitely not is a prize or a dodgy way of ''cheating the system''. When you're owed a HMRC tax refund, it's because you've already paid too much tax.
When you're paying your own way to temporary workplaces, the odds are good that you're owed some tax back for your expenses. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. It's worth making sure you get back what you're owed, too. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to £3,000. This is based on average total claims data for a 4-year period. Refunds are subject to fees of 36%. Exclusions apply.
A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. The tax rebate system's a little clunky in places, but RIFT's on-demand, 1-on-1 service means you'll never get lost or lose out.
Just answer a few simple questions and we can tell you whether it looks like the expenses you've had to pay out in the course of your work meant that you may have paid more tax than you should.
You can also use our tax refund calculator to see an estimate of how much you could be due if you make a claim.
Our standard charges are:
Don't worry if you had a mixture of self-employed and PAYE (employed by a company) work during the period you want to claim for. We can work out if you would be due a refund and let you know what the fee would be.
See our full list of services with prices and options.
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (which is included free of charge) and if they did demand any money back, we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
If you don't have a P60 we you can use your last payslip or income statement. We can also get copies of the P60 directly from HMRC.
Visit our checklist for details of the documents you need and what to do if you are missing anything.
You can reach us on the phone or Livechat
You can email us or send us a question or feedback through our contact page at any time and you can leave us a private message through our Facebook page.
A tax return is a form you use to tell HMRC about your earnings and expenses. It's a complete overview of the taxable income you've made and the costs of doing business you've faced.
A tax refund is money HMRC gives back when you've paid too much tax. There are several reasons why you might overpay, and you often have to file a claim and prove you did.
There’s basically no acceptable excuse for missing self assessment tax return deadlines, even if you don't owe HMRC anything. If you miss the deadline there are a number of self assessment tax return penalties that you could be hit with:
We’re here to take care of everything - from completing your tax return, through calculating any refunds due, to speaking to HMRC on your behalf. You can also get more self assessment tax return tips and advice here with some clear ''dos'' and ''dont's''.
Find out more about self assessment deadlines and penalties.
If you’re in the right age group for it, the Lifetime ISA scheme could be a very smart option when you’re looking to scramble together a house deposit.
Top things to know:
Keep in mind that the £4,000 yearly limit is part of your normal ISA limit. No matter how many ISAs you have, you can’t pay in more than £20,000 (as of the 2021/22 tax year) across all of them.
As for how you can use the money in your Lifetime ISA, the rules are:
Smart meters are pretty common these days, and they’re actually really useful. That little monitor sitting on your windowsill is constantly talking to your meters to track all the energy (and cash) you’re burning through and reporting it back to you. That’s incredibly handy information to have on tap when you’re trying to cut down on waste.
For one thing, that constant reminder of what your energy’s costing you is just the boot up the proverbials that most of us need to do simple, easily forgotten things like switch off unneeded lights.
It gets better. Getting a smart meter fitted can actually unlock better rates and plans from your energy suppliers. Getting detailed, more-or-less real time information on your energy use allows companies to customise your deal to offer cheaper rates at different times of day, like “off peak” periods when there’s less overall demand. With less “pressure” on the grid, it gets cheaper for businesses to supply your energy. That means they can “reward” you for using energy in those cheaper periods with a break on your rate. Armed with that information, you can then plan out your energy use to make the most of the cheaper times – like running your washing machine overnight, for instance.
In fact, smart meters are such a win/win proposition for you and your supplier that most companies will install one in your home for free! If you’re renting, you don’t technically even need permission from your landlord to get one, as long as the bills are in your name and you’re paying them yourself. That said, it’s probably still a good move to talk it over with them first, if only for the sake of a quiet life.
Naturally, what you stand to save by taking control of your energy use depends very much on what you do with the information. Smartening up your meter could easily mean you save an average of over £21 a year off your bills, though.
The clue to understanding price comparison sites really is in the name. If you’re on the site, the chances are you’re looking for a good deal on cost. For a lot of people, that’s all they need to know to make a decision – which can actually cause a couple of problems. If you judge a deal purely by how much money it costs, there’s a strong possibility you’re going to walk away with a product that doesn’t offer everything you need. According to a 2016 report from the Financial Conduct Authority (FCA), there’s serious concern about the number of people ending up with insurance that simply doesn’t give them the coverage they think it does. A good deal doesn’t start and end with its price tag. You’ve got to be absolutely sure of what you’re getting for your cash – particularly with insurance, where you usually only realise you don’t have good cover when you try to make a claim.
Consumer group Which? also spoke up about its worries over people not getting what they thought they were paying for. They talked about a “picture of inconsistencies and a lack of real choice that could be leaving consumers at risk of purchasing policies that simply don’t meet their needs”. In fact, 6 out of 10 of the offers they checked from GoCompare, Comparethemarket, Confused and Moneysupermarket didn’t even match what people actually got when they bought them. Some made false promises of perks like courtesy cars, while others only really offered half the cover limit they claimed!
Here’s another thing people often don’t realise about price comparison sites: they don’t actually all show the same prices. A comparison site is a lot like a marketplace. Suppliers are laying out their stalls with their various offerings, but they’re not necessarily charging the same price at every market they set up in. Furthermore, while some businesses do have agreements with comparison sites that say they won’t offer their products or services cheaper on a rival site, this actually works against the whole idea of competition.
Despite the cautions and drawbacks, a price comparison website can still be a great time and money saver – providing you’re prepared to sign up to several and compare them against one another. It sounds strange to have to compare the comparison sites themselves, but it’s still basically the only way to know if you’re getting the best deal you can. Yes, it’s super-convenient to have all the deals listed in one place – but if that’s the only place you’re checking then you’re really not getting the full picture of what’s out there. In fact, some firms—including heavyweights like Direct Line—actually pride themselves on the fact that they don’t appear on price comparison sites.
15 things you can do in the next half hour to save some cash
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Whatever kinds of investments you’re looking into, it’s going to pay to keep a few basic principles in mind. Firstly, don’t gamble with money you can’t afford to lose. Even “safe” investments can wind up losing you money in real terms if the returns are swallowed up by inflation. Remember the “50/30/20” rule of budgeting, where 50% of your income gets put toward essentials, 30% to non-essentials and the remaining 20% to savings and investments.
Lastly, know where to get good advice. Depending on your situation, that might mean talking to a specialist adviser, or using an index fund to manage your portfolio professionally. Don’t dive into decisions based on hunches or blind punts, and keep your expectations realistic. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
The Self Assessment system comes with a range of fines and penalties that start to kick in the moment you miss a deadline or don’t stick to the rules. For example, if you miss the main deadline of the 31st of January for filing your tax return and paying up what you owe, you’ll be hit with an automatic £100 fine. If you keep HMRC waiting after that, things just keep getting worse:
Even if you get your Self Assessment paperwork in on time, things can still get bad if your numbers don’t add up. Making a mistake in a tax return can be painful when the taxman catches on. Deliberately lying in a Self Assessment form is even worse. If you’ve just made an honest mistake, there’s a chance you’ll be able to fix the problem before the penalties start rolling in. You have to do it within 12 months of the deadline, though. If you do your taxes online, this can be as simple as logging in and correcting the error. If you file on paper, though, it can get a little more complicated. You've got to download another copy of the Self Assessment form and send in the pages you've changed. The main thing is to be honest and up-front as soon as you realise there’s a problem in your paperwork. If the taxman thinks you’ve deliberately understated your income, over-claimed for business expenses or even just been careless with your bookkeeping, things can get bad very quickly.
That said, HMRC does understand that life can sometimes get in the way of your Self Assessment homework. If you’ve got a reasonable excuse for missing a deadline or giving incorrect information, for instance, you might be able to limit or avoid the damage. What’s a reasonable excuse in the taxman’s eyes? Well, it’s a short list, but here are a few examples:
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
So let’s look at some actual specifics here. Making a financial plan, whether for the short or long term, is all about being properly organised. What does that mean in practice? Let’s break it down into easy steps with the SMART system:
When you’re setting financial goals and making plans to accomplish them, there really is no such thing as starting too early. For example, how much easier would your targets be to hit if you claimed your yearly tax refunds as part of your preparation? Depending on your work costs and travel, you could be looking at a decent chunk of cash going to waste on the taxman’s desk each year if you don’t claim it. You can make your claim from the time the tax year ticks over, so make sure you’ve got your receipts and other paperwork prepared in advance. Your refund could pay off nagging bills or help wipe out expensive debts, clearing your way to put your financial plan into action. If your debts are already under control, then your refund is a serious leg-up on our overall progress.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Family-run businesses, as you might expect, are some of the most common types of smaller company. If you're looking to partner up with people you know and trust, where better to start the search than your own home, right? In fact, as of the statistics for 2020, over 3 in 4 small and medium-sized enterprises (SMEs) were family-owned. The larger the business, the lower that number goes, with 4 in 5 micro-businesses (firms with fewer than 10 employees) and 2 in 3 small businesses being owned by families. By the time you get to medium-sized companies, though, that figure's dropped to just under 6 in 10.
So, what kind of businesses are we talking about here? Well, it turns out there's quite a variety of them. About the most popular place to find family businesses is in the building trade. Coming a close second is the so-called "primary sector". This really just means firms that deal with basic raw materials like mining, but also includes farms and fishing operations. Next in line we have retail and wholesale businesses, followed by administration firms.
Going into business for yourself is something a lot of people in the UK dream of. Again, using surveys from 2020 as a guide, we see that a massive 64% of UK workers had thought seriously about setting up their own businesses. If you narrow it down to the younger crowd, the statistics are even more striking. An impressive 83% of 18-24 year-olds in 2020 were dreaming of going into self-employment. There are a lot of great things about being your own boss, from a real sense of independence and freedom to being able to fine-tune the way you work to suit your own life and goals. If this sounds like a dream worth chasing, the first thing to do is understand how to make and stick to a budget—so take a look at our other guide, "How to Budget if You Are Self-employed" for more.
How to budget if you're self-employed
Of course, going your own way doesn't have to mean going it alone, so a lot of these new small businesses get their start when families or friends decide to build something great together. With that in mind, let's talk about how to give your new business the best possible start.
Let's assume you already have a strong idea of who you want to go into business with. Now it's time to look into the main practicalities you'll need to tackle. Even small businesses have a lot of moving parts, which means a range of different responsibilities, job roles and levels of authority to divide up. Getting those decisions right from the very start will give you a big boost when it actually comes to running things day-to-day. The clearer it is who's supposed to be doing what, the smoother your new company's ride will be.
While we're on the subject of dividing things up between you and your partners, let's have a quick word about ownership. This is where business gets really serious—and again, you'll want this to be crystal clear to everyone it affects from day one. Business ownership isn't something you can settle with a basic nod-and-handshake arrangement. You'll need to draw up contracts, and make sure everyone's happy with what they say. While you're at it, you'll want to set a few goalposts for your business. Give some thought to what you're hoping to achieve, and what you're planning to get out of it. Keep your targets as realistic as possible, given your available resources and experience—but don't be afraid to dream a little bigger. There's nothing wrong with shooting for the moon as long as you understand that a step-ladder won't get you all the way there on its own.
This is where you'll really want to get talking with your partners. Make sure everyone's on the same page in terms of realistic expectations and achievable targets—or even your "exit strategy" if your circumstances change or things don't quite work out the way you wanted. You've got to be open and up-front with your business partners, even though it can be tough to keep your home and work lives completely separate when you share a dining table with your company’s MD. If the time ever comes for you to step back from your end of the business, leaving your "succession planning" too late can mean you don’t have time to get it done properly. That can seriously mess with your business and force you to make key decisions in a rush. Suppose the person you’ve picked out to take up the reins has other plans, for instance, or simply isn’t up to the job. Do you have a back-up plan? If so, how do they feel about being your second choice?
For another thing, people's personal situations can change unexpectedly. It needn’t even be as dramatic as a divorce or death in the family, either – although those can certainly happen. If you’re considering passing on your business to relatives once you step away from it, you’ve actually got more considerations than other kinds of company. On the one hand, it’s important to do what’s best for the business itself, passing control to the people with the most interest and aptitude for it. On the other, you’ve got to weigh up the more personal consequences of your choice. In some cases, you might even find yourself with no good moves to make at all – at which point it could be worth looking into other candidates outside the family, or even selling the business outright.
So, with a heaving pile of circumstances, obstacles and egos to contend with, how do you go about keeping order in your business? There's never going to be a one-size-fits-all solution for every situation or firm, but the strongest place to start is with a well made shareholders' agreement. Not only will this protect your business, your partners and you, it'll also cut down on a lot of the general awkwardness that can come when friends and families work together. It's like a business-themed take on the pre-nuptial agreement, spelling out what everyone's agreed to in advance to avoid uncertainty and unpleasantness later. If you and your firm's partners decide to break up somewhere down the line, everyone's clear on what the rules are. For example:
With all the fiddly legalities neatly ironed out, you can move ahead with the exciting part—actually setting up your business. You're in good company, too. As of 2020, the UK boasted over 2 million limited companies (a business set-up that protects your personal cash and property if the sky falls in) actively trading, with about half of those being one-person operations.
When you need to kick off a business partnership, your main port of call will be the government's own website. That's where you'll be asked about the kind of set-up you're aiming for. One option is a limited partnership, which means you've got at least one general partner and one limited partner. With a limited liability partnership, on the other hand, there aren't any general partners. Confused yet? A general partner is someone who owns and controls a business, but also stand to lose some personal cash if the business goes bad. Limited partners tend to have fewer responsibilities and less overall authority, but their personal money's more protected. By the time you hit the set-up page on the government website, you and your partners need to have already agreed these key details so everyone knows exactly where they stand.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Yes, it’s possible to invest in gold, even without the resources of a James Bond villain or a greedy dragon. Is it actually worth it, though? It turns out the answer depends very much on what you’re hoping to achieve - and how long you keep your money invested.
Over the really long term - and we’re talking about the last 30 years or so here – gold investments don’t really have any kind of edge over putting your cash into the stock market. In the shorter term of around 15 years, though, gold has outperformed stocks and shares investments pretty convincingly. Here are a few numbers to chew over:
The DJIA is considered to be a pretty decent snapshot of the entire US economy, making it one of the most well known stock market indexes. When times are tough and the markets are volatile, gold often becomes a much more attractive investment option. It just doesn’t “twitch” up and down in value with general market prices. 2020’s a good example of this. Gold prices flew up to record levels in July that year, while stock market values plummeted. The same thing happened in 2008 when the financial crisis happened. The down-side to that stability, though, is that when the markets are going strong, the price of gold can often level out while other investments shoot up.
Another thing to realise about gold is that it isn’t going to give you a regular income the way other types of investing can. The value of your gold investment is determined entirely by the price of gold itself. Assuming you’re buying actual gold rather than investing in gold-related businesses, you’re also going to be looking at storage and insurance costs. You can read more about this in our article, “An Intro to Gold Investing for Beginners”.
So, gold can be a decent back-up plan to keep your money’s value when other investments turn out to be less reliable. It’s more about ensuring you don’t lose cash than making you more of it, though.
Keep checking back here for more money saving tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
We’ve all grown up in a world that respects and values gold. It’s a respect that dates back many thousands of years, and shapes how the metal’s viewed today by investors, businesses and virtually everyone else. As far back as 4,000BC, gold was being used in Eastern European cultures to make decorative objects, and across millennia its primary use was in jewellery and objects of religious worship. Despite this, it really wasn’t until around 1,500BC that gold first became a kind of global “money”. Egypt, whose Nubia region was rich in gold, made it an official standard of value and the first international medium of exchange.
Skim forward a couple of centuries and we find a kingdom in Asia Minor called Lydia, where the first gold coins were minted. By 50BC, the Romans had started using a gold coin they called the Aureus (literally, “golden”). Eventually, gold coins started changing hands all over the world. The Republic of Florence, in what today would be Italy, had the Ducat, while Great Britain had its Florin. The Ducat, in fact, ended up being the world’s top gold currency for another 5 centuries!
So, why’s the world still so excited about gold? After all, it’s too soft and too scarce to build anything useful out of, isn’t it? Even the gold used in jewellery often needs to be blended with other metals to give it strength. In fact, some people reckon we really shouldn’t be using it as a measure of value at all anymore.
To be fair, gold goes have some interesting properties. It’s non-toxic and never rusts and that softness we talked about makes it easy to work with. It’s even great for electronics, since it conducts electricity so well. If you want to get into the deep science of it, it’s ideal for nanotechnology, resists bacteria and can even be used in the fight against cancer! In real terms, though, the simple truth is that gold is beautiful, ageless and really rare - and eventually enough people decided that these factors made it important and valuable.
When you’re comparing one kind of investment with another, everything depends on the time frame you’re considering. Over the last 15 years or so, gold’s been a pretty solid investment compared to stocks and shares. If you stretch that out to 30 years, though, things swing back in the other direction. In the last 3 decades, the price of gold has risen by about 360%. Compare that to the 991% rise in the Dow Jones Industrial Average over that time and it doesn’t look too great.
For reference, the Dow Jones Industrial Average tracks the stock prices of 30 big US firms. It’s among the most well known and respected stock market indices, making it the place to look for a snapshot of the American economy.
Looking back at our comparison, the picture changes quite a lot of we narrow down the time frame a bit. Looking just at the period from 2005 to 2020, gold has shot up 330% in value – not too different from the 30-year increase. Over that same 15 years, though, the DJIA only rose by 153%.
As for what this all means, it’s a question of stability. Gold typically doesn’t twitch up and down in value alongside general market prices. If you’re looking for a relatively safe investment, that’s a good thing to see. It’s one of the reasons why gold tends to go up in value when the economy’s on shaky ground. Investors know to look for stable places to put their money. 2020’s actually a good example of this. Gold prices flew up to record levels in July that year, while stock market values plummeted. The same thing happened in 2008 when the financial crisis happened. The down-side to all that stability, of course, is that gold investment tends not to take full advantage of economic growth periods. The price can often sit steady while other investments see sharp rises.
The other thing to understand about gold is that your investment probably won’t bring in an income on its own. There won’t be any dividend payments like you can get from shares, or interest like you’d bet with a bond. Instead, the return on your investment is going to hang entirely on how the price of gold shifts. If you’re buying actual, physical gold, you’re also going to have to pay to insure it and store it somewhere secure.
All told, gold is the kind of thing you invest in to keep your money safe, rather than to make massive returns on it. That’s why it’s often seen as an excellent “backup plan” in case your more volatile investments turn out disappointing.
As we’ve hinted at already, you’ve got a few options when it comes to investing in gold. First, and most obvious, is actual gold itself. That could mean bullion, coins, jewellery or anything else made from the stuff. You’re going to need quite a lot of cash to get started this way, and you’ll need to protect yourself from getting ripped off. That’ll mean using reputable dealers, brokers and banks, all of whom will be able to provide proof of authenticity. If you’re buying coins, keep in mind that it’s not just the raw weight of the gold that you’re buying. The dates, designs and condition of the coins matter too, and it might be worth talking to an expert to get good advice. A good dealer may even be able to store your gold for you, which can simplify things like insurance and protection. You’ll still need to pay for the service, though.
You can also get gold bullion through the Royal Mint, either taking the delivery yourself or having the Mint store it for you. Again, there’s a fee for using their storage system (known as the Vault), which will typically come to 1% of your gold’s value per year, plus VAT. Investing through the Royal Mint means you never have to worry about your gold’s authenticity, but it’s a pretty expensive way to do it.
Moving away from physical gold, you could look into Exchange-Traded Commodities (ETCs). These are a lot like the ETFs (Exchange-Traded Funds) we talk about in our article, “7 Investment Methods When You’re Just Starting Out”, only for commodities. They track the price of gold, with the calculations based either on stores held in a vault or, slightly riskier, on buying gold-related products. Your money’s generally kept in a Stocks & Shares ISA, and your ETC can be traded on investment platforms. It’s a cheaper system than buying physical gold, and comes with none of the associated storage costs and other hassles. You’ll still have to pay for the trading platform you use, though.
Lastly, you can put your investment cash into businesses that actually work in the gold industry, whether that means mining, refining or distributing it. This can actually work out more profitably than buying gold itself, since you’ll be investing in companies that will pay dividends on your shares. You’re sacrificing some of that famous gold stability, though, so the risks are higher. The value of your investment won’t just be based on the overall price of gold. There’ll also be the profitability of the business you’ve bought into to factor in, so you’ll need to be aware of things like the demand for the company’s products, the kinds of costs they’re running up and so on. That said, even a fairly small rise in the price of gold can lead to much higher returns on some gold stocks than if you just owned the gold itself.
So there you have it – a beginner’s guide to investing in gold without ever having to plunder a dragon horde or shake down a leprechaun. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
National Savings and Investments Premium Bonds are basically a type of savings account. Like most other savings accounts, you can pay in and withdraw cash more or less whenever you want or need to (although it can take a little time to process a withdrawal – see below), with interest being paid on the amount you’ve saved. However, Premium Bonds pay out their interest in a very different way, through regular monthly prize draws. That’s right – you actually have to win your interest!
Here’s how it works. Every £1 Premium Bond has an equal chance of winning in any given draw. Naturally, that means the more Bonds you buy the better the chances of one of them being picked as a winner. To keep things interesting, NS&I has a machine it calls “Ernie” (standing for Electronic Random Number Indicator Equipment), which it uses to pick the winning Bonds. You can buy Premium Bonds with a minimum one-off purchase worth £25, or set up a monthly standing order to keep buying more to a maximum total of £50,000 of investment. You have to be over 16 to buy Premium Bonds, but it’s possible for someone else to buy them for people who are younger. In that case, the parent or guardian of the child will hold onto the Bonds until the child turns 16.
Once you’ve held a Premium Bond for at least a full month, you’re eligible to start winning the draws. So, for instance, if you buy yours in the middle of January they’ll be officially entered into the March draw. While we’re talking about timing, if you’re thinking of moving some cash out of your savings and into Premium Bonds then it’s best to consider when your interest is paid out. For instance, if you transfer the money in the final week of the month, you’ll minimise the amount of time it’ll be stuck no longer earning interest but not yet eligible to win a Premium Bond draw.
One exception to the month-long delay is if you reinvest any money your Premium Bonds win back into the scheme. Those winnings will be eligible to win another draw from the next month onward. So, if you won £25 in January and reinvested it, that £25 of Premium bonds would be entered into the February draw.
Premium Bonds stay entered in the monthly draws until you cash them in. Again, you can set the wheel in motion to withdraw your money at any time, but it can take as long as 8 days to actually get your hands on it.
Technically speaking, the interest you stand to win on your Premium Bonds is completely tax-free. That sounds great, of course, but in practice it won’t make any difference to most people. In 2016, a new Personal Savings Allowance (PSA) rule came in, meaning that basic-rate (20%) taxpayers can earn up to £1,000 per year in interest without paying any tax on it. People paying the higher rate (40%) have that allowance cut in half, while people on the top 45% rate get no allowance at all.
In real terms, what this means is that virtually everyone pays no tax on their savings interest, including any Premium Bond wins. As a result, there’s no real tax advantage to the scheme now. However, if you ever did end up winning enough to put your total interest over the £1,000 limit, your Premium Bonds interest wouldn’t count against your Personal Savings Allowance – making it almost an extra allowance in itself.
Of course, for that to matter you’d have to win something in the first place – so let’s look at the odds of that next.
Since any interest you get on Premium Bonds comes in the form of winnings, there’s no hard-and-fast interest rate you stand to earn. That said, there is an annual prize fund rate that loosely measures the kind of return you might expect overall. As of 2021/22, that rate stands at 1%. So in general, every £100 invested in Premium Bonds might be expected to pay out £1 in interest. It’s actually a bit more complicated than that, since the lowest prize level is £25, but it gives you a rough idea of the average returns you’re looking at.
Of course, the word “average” is doing a lot of work in that last sentence. We’re talking about a “mean” average here. In reality, for every person who wins £25 or more on a £100 investment, another 29 people get nothing at all. With a top prize of a massive £1 million, that means an awful lot of people getting absolutely no interest on their Bonds. In fact, assuming you have moderate luck with Ernie’s picks, even pumping the maximum of £50,000 into Premium Bonds would probably only score you about £450 over a year.
It’s not always easy to compare one kind of investment with another, and with Premium Bonds it’s possible to have massive wins – or nothing at all. However, if we stick to some reasonable assumptions about what you stand to win.
The numbers shake out like this:
Overall, then, assuming “average” luck with your winnings, Premium Bonds start to outperform basic savings accounts once you’ve got around £5,000 invested.
Basically, the more Premium Bonds you buy, the more likely they are to be worth it – at least compared to other kinds of savings accounts. If you’re putting away over £5,000, for example, they can work out better than normal easy-access savings. You’d need to have an impressive run of luck to match the top rates you can see with some fixed-term accounts, but you do have easier access to your money than a fixed account will allow. That makes Premium Bonds a reasonable investment if you’re looking to save for the longer term but still want the reassurance that you can get hold of your cash in a pinch.
Similarly, if you’re already earning enough interest to pay tax on it (over £1,000 for basic rate taxpayers), then Premium Bonds will probably work out better once you’ve got a large enough chunk of change invested in them. They can even be a better option than other tax-free savings accounts like cash ISAs when the interest rates on those are low.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Let’s get into the real nuts and bolts of it. The first thing to do is add up everything you’re spending right now. Look through your banking apps and statements to get the full picture of what’s going out each month.
Once you’ve done that, start knocking off any of those regular costs that won’t be a factor after you’ve retired. Depending on your situation, that may mean work travel, childcare costs, your pension contributions and any other saving you’re doing. If you’re expecting to have paid off your mortgage by retirement, remember to subtract that too.
If you really want to make your retirement savings count, there are even more ways to bring down your basic minimum retirement pot target. Again, a lot of these advantages and opportunities stem from the fact that you’ll no longer be making decisions around the demands and costs of your job. When you’re booking holidays, for instance, you won’t be stuck jetting off during peak seasons. With time on your side, off-peak holidays could be a serious money-saver.
If you’ve been running a car mostly for getting to and from work, you’ll already have noticed your costs going down. In fact, it might be time to think about whether you really even need your own wheels at all. A lot of families need more than one car while they’re working, so even scaling back the number of vehicles you own can mean a major boost to your budget.
If ditching your wheels seems like too big a step to take, think about dropping any Personal Contract Purchase or lease agreements in favour of simple buying a car outright. You’ll be saving a lot on interest payments in the long run.
The other big thing to look at is your home. If you’re no longer putting a roof over your kids’ heads, it could be a good opportunity to “downsize”. You might have a lot of money tied up in your house, so selling up and buying a smaller property can release a serious chunk of cash. In some cases, you might not even have to get somewhere smaller, assuming you’re happy to move to an area with lower property values. You can do this whether or not you’ve paid off your mortgage, of course, which could at least bring down your monthly payments. A smaller property will also generally be cheaper and easier to maintain.
So that’s a basic run-down of the hows and whys of saving for retirement. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
By the 31st of January, you have to file your online tax return for the previous tax year, and pay any tax you owe. Miss this by just one day and you're already looking at a £100 fine. You should get yourself registered as self-employed as soon as possible after you start trading. The deadline for getting yourself registered is the 5th of October in the year that you started your self-employment. Miss that, and you're risking penalties based on the potential lost tax.
Important Self Assessment deadlines include:
| 31st of January | This is the big one, you have to file your online tax return for the previous tax year and pay any tax due. You'll also have to make the first of any payments on account you need for the following year. |
| 5th of April | The end of the tax year. Soon after this date, you'll be contacted by HMRC to file your Self Assessment tax return. |
| 31st of July | If you're making payments on account, this is when the second one's due. |
| 31st of October | If you're sending in a paper Self Assessment tax return, this is the deadline for it. |
If you miss the deadline for a good reason, you may be able to steer clear of the penalties. HMRC will expect you to be extremely up-front and co-operative, though. You can read more about penalties for failure to notify on the HMRC website. Keep in mind that you may also need to register separately for VAT. Again, check the HMRC website for details.
Technically, you can submit your Self Assessment tax return at any time after the end of the tax year, as long as it's filed by the 31st of January the following year. That said, it's always better to get it done sooner. For one thing, you'll know earlier how much you owe. That means you have time to plan or save up for making the payment.
Missing the tax return deadline lands you in an automatic £100 late-filing penalty. Those fines ratchet up further after 3, 6 and 12 months. A genuine reason might stop the penalty pain, but don't count on it.
There’s almost no acceptable excuse for missing Self Assessment tax return deadlines, even if you don't owe HMRC anything. If you do miss a deadline, interest is charged on both unpaid tax and unpaid penalties, so it's vital you don't get in a position of increasing fines just because it "slipped your mind" or you "didn't have time".
There are very few reasons that HMRC will accept as valid for late filing or payment. If you do need to file late then it is crucial that you let them know as soon as possible to show that you’re doing your best to fix things.
Penalties for missing the filing deadline of 31st Jan:
Things only get worse if the taxman suspects you're deliberately holding back information that would let him work out the tax due.
Penalties for late payment:
Tax returns aren't just for the self-employed. There are lots of reasons why you might need to file one each year. You might have additional sources of income outside of your main job, for instance, or be the director of a company. Here are a few of the main examples:
When you’re filing a Self Assessment tax return, the information and documents you need will depend on your situation and business. Here are some of the basics:
The point is to give HMRC as complete a picture of your business and finances as you can, so you only end up paying the tax you owe. The Self Assessment system can be complicated, so talk to RIFT to make sure you’re making the most of it.
When you start working for yourself, registering for Self Assessment is Job One. You've got to do it as soon as possible, and you'll get fined if you wait too long. The deadline for registration is the 5th of October in your business' second tax year. Don't miss it!
The easiest way to register for Self Assessment is by doing it online. Here's how:
You can also send your registration form by post, but you've still got to go online to download the form anyway.
To register as self-employed and to get your UTR number, you'll need to have all the following information to hand:
If you’re a self-employed subcontractor in the building trade, you’ve also got to register for the Construction Industry Scheme (CIS). When you're paid through CIS, your contractor has to chisel off a hefty chunk of your pay before you get it. That money goes straight to HMRC. It's supposed to act as "advance payment" toward the tax and National Insurance you'll owe. Your contractor doesn't have any choice about this; it's just how the law works.
A UTR (Unique Taxpayer Reference) number or tax reference is a 10-digit code that's unique to either you or your company. Your UTR number identifies you personally with HMRC for things related to tax.
There are a number of ways of finding your UTR if you already have one. It’s 10 digits in length and is quoted on previous tax returns and other documents from HMRC, including:
If you’ve already registered for the online services area of the HMRC website you can log in and find your UTR number there.
When you're ready to start filing Self Assessment tax returns, you'll be applying for a UTR as part of your registration. It might take a while to get your UTR number from the taxman. Make sure you leave enough time to get it before you have to file your first return. A couple of months should be enough to be sure of it.
You’ll need to pass a series of security checks to allow HMRC to confirm your identity. Once this has been done they’ll post your UTR number to you, which can take up to 7 days. This is the only way HMRC will send your UTR number to you, so get a move on if it’s approaching the tax return deadline!
If you've lost your UTR number, or the above correspondence, your best option is to contact HMRC directly. UTR numbers are unique, so make sure you keep yours safe. A UTR could be used for identity theft if it falls into the wrong hands.
Companies have UTRs as well as individuals. The company Unique Taxpayer Reference (UTR) will have been issued by HMRC when the company was set up and registered. It can be found on documents HMRC have issued, such as the "Notice to deliver a company tax return" (form CT603).
Your company’s UTR will be included in the first letter you receive from HMRC at your registered office. It will be printed next to a heading like “UTR”, “Tax reference”, “Official Use” or “Reference”. HMRC will use the UTR to identify your company whenever you contact them about tax.
Your company’s CRN (company registration number) is not the same as your company Unique Taxpayer Reference (UTR). Your company number is officially known as a Company Registration Number (CRN). It’s issued by Companies House immediately upon incorporation, is unique to your company and is displayed on your certificate of incorporation. You must provide this number whenever you contact Companies House.
Under the Construction Industry Scheme, you're essentially being taxed right from the first penny you earn, without getting your tax-free Personal Allowance. It's supposed to crack down on tax evasion in the construction industry, but in reality it's the honest subcontractors that are carrying the load.
The news isn't all bad, though. You can claim back the extra tax you've paid in your Self Assessment tax return. That's right: even though you've already had 20% of your money taken by HMRC, you still have to file a return. If you've paid too much tax, you can get a tax refund.
If you’re working via the Construction Industry Scheme (CIS), you’ll be required to file a Self Assessment tax return after your first year of trading and in subsequent years. You’ll complete your tax return at the end of the tax year in April and pay any taxes that are due by the following January.
Yes, you will pay tax “at source” (your tax is taken off your wages before you get them), most likely at the rate of 20% of your income. However, this doesn’t mean you are “employed”. You still count self-employed under CIS – even if it doesn’t feel like it. The big difference is that this means you'll still have to do Self Assessment each year. Not filing those tax returns each year brings three very serious problems your way:
When you’re a subcontractor running a Limited Company of your own, the deductions your contractors make can be used to bring down the Corporation Tax you owe. Alternatively, you might just be able to get it refunded by the taxman.
When you’re a contractor with subbies to pay, you have to send a regular report to HMRC about all the CIS deductions you’ve taken from their earnings. You do this on a monthly schedule. It makes no difference if your subcontractors are individual people or companies themselves. It’s just another way of taking tax out of their pay, the same as you would via PAYE.
If your company’s doing work for a contractor, and you aren’t using subbies, the contractor will handle your CIS deductions. If you’re registered for CIS, you’ll lose 20% of your pay to the taxman. If not, it’ll be 30%. You might be able to apply for gross payment status, where no CIS deductions are made. Things can get sticky there, though, so you need to know what you’re doing.
You’ll report the amount taken out via CIS in your Employment Payment Summaries to HMRC. At the end of the tax year, there’ll be an online form to fill in on the government website. HMRC uses those figures to work out how much to knock your Corporation Tax bill down by. If you end up in credit, you’ll get a tax refund.
If your company’s using subcontractors, but is doing work for another contractor, then your situation’s a little more complex. Your contractor will still make CIS deductions before paying you, as normal. You’ll then take CIS payments out of your subbies’ pay. The amount you end up sending to HMRC depends on which is higher – the amount the contractor took from your pay or what you’ve taken from your subcontractors’. If you end up losing more in your own CIS payments than you’re taking from your subbies’ cash, then your Corporation Tax bill comes down to settle up. If it’s the other way around, you’ll end up owing HMRC money.
Payments toward student loans are handled through your normal Self Assessment paperwork. Anything you owe will be included with your main tax bill. Watch out if you're paying late; the fines will be the same as if you'd missed the tax deadline.
If you're making payments on account (advance payments on your tax bill), your student loan payments won't be part of them. Remember that you can make voluntary payments directly to the Student Loan Company if you want to. Those won't be included on your tax return, though, and won't reduce your actual tax bill.
Once you've registered for Self Assessment online, you can:
HMRC's Making Tax Digital scheme is aiming to make tax simpler for individuals and businesses in the UK. Part of that process is the new Personal Tax Account System.
Your Personal Tax Account gives you better access to and control over your personal information. You'll also be able to check your tax code and state Pension and do things like track the tax forms you've submitted.
Filing a Self Assessment tax return means showing HMRC a full picture of your finances. Here are a few of the most important documents you need to hold onto:
Other things to keep track of include extra income such as untaxed tips, incentive payments or benefits like meal vouchers. Depending on the kind of work you do, you might need to record your expenses for things like:
Remember, it's not just the self-employed who file Self Assessment tax returns. If you're claiming a tax refund for expenses of over £2,500, you'll need to use the system too.
You can make your Self Assessment payments by:
If you can’t afford to pay the tax you owe – don’t panic! The main thing to do is to let HMRC know you’re going to have trouble paying up. Do this as soon as possible once you realise there’s a problem. In most cases, they’ll be able to help you sort out a payment plan that’ll ease the financial pressure. A “Time to Pay” arrangement, for example, can see HMRC working with you to set a personal payment schedule you can realistically handle.
A mistake in a Self Assessment tax return can be a problem, but the system makes it easy enough to fix things if you’re on your toes. Don’t wait for HMRC to spot the mistake and start asking questions before you act, though. The moment you realise there’s an error, get to work correcting it. You can make changes to your tax return within 12 months of the filing deadline (the 31st of January). After that you’ll need to write to HMRC to get any corrections made.
Payments on account are payments towards your next year's income tax. The amount you have to pay for each payment on account is half of your previous year's tax bill. So, if your previous year’s tax bill was £2,500 (you only have to make payments on account if your tax bill is over £1,000), then each payment on account would be £1,250.
This is HMRC's way of spreading out the money you'll owe in your next tax bill over the year. They can be quite a shock the first time you're asked to pay them. However, they're really just designed to make paying your tax a little less painful.
When you file your Self Assessment tax return and your tax is calculated, HMRC assumes you'll owe about the same next time.When you settle up your tax bill in time for the normal deadline (31st of January), you also have to make your first payment on account for the following year. The amount will be half of the previous year's tax bill. Six months later, by the 31st of July, you'll have to make your second payment on account. Again, this will be for half of the previous year's total tax bill.
If you paid a total of, say, £2,500 on account for the year, but you find that you're actually due to pay £2,700 when you come to do your tax return, you'd pay a “balancing payment” of £200 to HMRC by 31st January the following year. Your two payments on account for would each be half of £2,700 (the previous year's tax bill). On the other hand, if your payments on account mean you've paid too much tax, you’ll be due a tax refund.
Payments on account are for self-employed people, and apply to both your income tax and class 4 National Insurance contributions. If you need to make them, you'll see the amounts and deadlines when you sign into your HMRC Self Assessment website.
A tax code is a little string of letters and numbers that tells your employer how much cash to hack off your pay before forking it over to you. You can find it on a bunch of documents - and it’s worth keeping an eye on it, since it can and will change once in a while. Look out for your tax code on:
If you spot a change in your code and don’t understand it, getting some expert advice from a professional accountant is a great idea. A good accountant can explain exactly what it all means, and sort it out for you if the taxman’s got his wires crossed. If you change your name or decide to work for yourself, for instance, you’ll need your tax code fixed so you don’t end up on the wrong side of HMRC.
The amount you’re coughing up to HMRC comes down to 2 basic things: how much you’re earning and what your Personal Allowance is. Your Personal Allowance is listed in your tax code. Whatever you earn up to that amount each year, the taxman can’t lay a finger on it.
After your Personal Allowance is used up, the next chunk of your pay is taxed at the Basic rate. Once you hit the upper limit of that, anything more you earn gets hit with the Higher rate. Really big earners can find the top end of their pay being taxed at the even higher Additional rate.
On top of your Income Tax, you’ll also find yourself coughing up National Insurance contributions (NICs). Again, your employer handles this before you get your pay. If you’re on PAYE, you’ll be paying Class 1 NICs, which go toward stuff like your State Pension and a bunch of benefits you might find yourself claiming from time to time. Gaps in your payment history can lead to trouble down the road, but you can sometimes make voluntary payments to catch up.
Again, because the taxman loves his little codes, the NICs you pay are worked out from your National Insurance category letter. You can generally find this on your payslips, but most people using PAYE will be in category A. Here’s what they all mean:
Most people on PAYE never need to deal with the taxman directly to pay their normal tax. However, sometimes, HMRC’s going to want to stick its beak a little deeper into your business. Maybe you’ve got some extra cash coming in outside of your PAYE job, or maybe you’re trying to claw some money back through a tax rebate. When that happens, you might find yourself filing a Self Assessment tax return. Here are some examples of people who need to send returns:
That last point’s a big one. If you ever get a letter from HMRC demanding a tax return, don’t ignore it. Even if you’re sure it’s a mistake, it’d be an even bigger one to leave the taxman waiting.
When you leave a job you get a form called a P45. This pretty much just tells you what you’ve earned so far in the tax year, and how much of it HMRC got its mitts on. You’ll be able to double check stuff like your National Insurance number and tax code, too.
The main thing is knowing what to do next. If you don’t have another job to go to straight away, or if your new earnings are lower than before, you might be owed a slab of tax back. Basically, HMRC’s been taking tax from your pay on the assumption that you’ll keep making the same money for the whole tax year. If you stop work part-way through the year, you might well end up with a refund due.
There’s another important form called a P60. This one’s got the same kind of information in it, but it covers the entire tax year. If you don’t get one you need to kick up a fuss, since you might have a tougher time claiming back the tax you’re owed without it.
The Marriage Allowance is a way of you and your spouse (or civil partner) shifting your Personal Allowances between you. Basically, if one of you isn’t getting the full benefit of their Personal Allowance, they can transfer £1,190 of it to the other. To pick an example, if your spouse is bringing in £10,000 a year with a personal Allowance of £11,850, they’re missing out on some of the benefit. In that case, they could shift £1,190 of their unused allowance over to you, meaning you don’t pay tax on over an extra grand of income. That’s worth £238 a year.
We’re all used to the taxman taking a big bite out of whatever cash we’ve got coming in. When it comes to benefits, though, he’s a surprisingly fussy eater. Here are some of the payments he wants his share of:
While he’s stuffing his face on those, though, he’ll still manage to keep his hands off things like:
Unless you’re living overseas pretty much permanently, HMRC might still chase you for tax on what you’re earning. It’s all about whether or not you count as a “UK resident” for tax. A lot of that comes down to how much time you’re spending in the UK each year. If you’re here more than half the time, chances are you’re a UK resident.
If your overseas employer’s a UK company, you’ll probably still be paying National insurance, too. For foreign employers, you might find yourself coughing up the local equivalent instead. To check what taxes you have to pay, HMRC has a few tests:
One smart thing to do before you leave is check if you're owed a tax rebate from HMRC. If you're leaving part-way through a tax year, you may not have used up all of your tax-free Personal Allowance. If you're registered for Self Assessment tax returns, don't forget to file one as normal after the end of the tax year.
HMRC has a special form for people who are going to be away from the UK for a complete tax year. Visit their site for form P85 "Leaving the UK - getting your tax right" in good time before you leave.
If you’re earning abroad, there’s a tricky catch to watch out for. Depending on your situation, you could actually end up paying tax in 2 countries at once! The UK’s got some “double taxation” agreements around the world to make this less painful, so it's worth checking with to see what you're letting yourself in for.
If it turns out you’re not a UK resident for tax, you’ll normally be off the hook for your foreign income. You’ll still be paying UK tax on anything you’re earning here, though – along with things like UK bank account interest or rental income.
There’s a bunch of reasons why you might find the taxman picking your pocket. Maybe you’ve stopped working or left the country part-way through the tax year. Maybe you’ve been forking out for work travel or other essential expenses from your own pocket. If your circumstances have changed, like switching to a lower-paid job, then you might have paid too much tax over the year. You might even have been put on the wrong tax code. All of these things and more can mean you’re due a tax refund from HMRC.
The thing is, the taxman’s not always going to hand it over automatically. For one thing, he won’t necessarily know how much you’ve been spending on things like travel for work. When you don’t get an automatic refund of what you’re owed, you have to make a claim yourself. That means working out exactly what you’re due, and backing it up with records and evidence. It’s a tough job for most people, and it takes a real tax expert to get the most from the refund system. A tax refund specialist can help find out what you're owed and claim it back. Even if you’ve never claimed before, you could still get back what you’re owed for up to 4-years.
The key thing to know about HMRC’s calendar is that the taxman celebrates his personal New Year’s Day on the 6th of April. Yes, it’s weird and clumsy, but it's got something to do with Pope Gregory XIII and the 11 days that went missing in September 1752. No, that’s not a joke.
Anyway, here are some of the main dates HMRC keeps circled:
The wheels at HMRC can turn pretty slowly sometimes, but they usually get there in the end. From start to finish, you’re probably looking at about 8-10 weeks to pry your refund cash from the taxman’s tightly clenched fist. Even so, there are a few things you can do to get your claim rolling as fast as possible:
How much tax you can pry out of HMRC’s clutches depends on your situation. On average, though, a typical yearly refund claimed through a specialist like RIFT is worth around £750. If this is your first refund claim and you’re claiming for the full 4-years, that adds up to over £3000!
When you're trying to bring down your Income Tax bill in the UK, there are a few basic things to check:
Most people in the UK get a tax-free Personal Allowance worth £12,570 per year. You won't start paying tax on your income until you go over that. There are also several other kinds of income that you won't need to pay tax on, such as:
Most people in the UK qualify for a tax-free Personal Allowance, which is the amount they can earn before they start to pay Income Tax. The standard Personal Allowance for 2022/23, for example, is £12,570. Anything you earn under that threshold won't be taxed.
If you're on the books and paid through the Pay As You Earn (PAYE) system, your tax is calculated automatically for you by HMRC, based on your tax code. This is why it's so important to check the code you're on, and to ask questions if it changes unexpectedly or looks wrong.
If HMRC notices that you've paid too much or too little tax, they might send you a P800 tax calculation form to explain the situation and tell you how they're squaring it up. However, when you've got expenses to claim a tax refund for, HMRC won't automatically know about them. That's why you need to make a tax refund claim to get your money back.
Yes, absolutely! In fact, only working for part of the tax year almost certainly means you're owed a tax refund. When HMRC works out the tax you'll pay through the PAYE system, it assumes that you'll be earning steadily throughout the tax year. If you stop working part-way through, your PAYE payments for the year will have been too high. That means you'll be owed some tax back.
HMRC certainly has the power to look into your financial affairs to make sure you're paying the tax you owe. Depending on the situation, they may be able to get information directly from your bank or building society. This can happen, for instance, if they're actively investigating your situation.
If your PAYE tax looks too high, there are a few things that might be worth looking into. For example:
Self Assessment generally is how people report any cash coming in that isn’t taxed PAYE. Self-employed people use the system to sort out their Income Tax and National Insurance – but a lot of other people have to file returns, too. For instance:
If you’re thinking of becoming your own boss, you need to let HMRC know quickly so you don’t end up choking on tax bills and penalties. That means registering online for Self Assessment by the 5th of October. Depending on how you’re set up (Sole Trader / Limited Company, etc.), you might have some other paperwork to handle as well.
Once you’re registered and have a Unique Taxpayer Reference number (UTR), you can go online and fill in your yearly Self Assessment tax return on the HMRC site. There’s a hard deadline of the 31st of January for filing and paying up what you owe. If that date blows by and the taxman doesn’t hear from you, you’ll be looking at a minimum of a £100 fine. The longer you keep him waiting, the worse the penalties get.
When you’re running a business, a lot of the cash you’re spending on essential costs can be used to bring down the tax you owe. Unlike with PAYE, the taxman doesn’t have his sights set on every single penny you’ve got coming in. It’s your profits he’s interested in. Costs that are completely necessary to run your business count against the income you’re paying tax on. The more you’re spending on your business the less tax you owe.
To get Self Assessment right, you need to get comfy with keeping records. Every time you spend cash on your business, you need to keep some evidence of it. Treat your invoices and receipts as if they were money. When it comes to filing your tax return, that’s exactly what they’ll be.
As for what counts as an “allowable expense”, it all depends on what business you’re in. The basic rule is that if it’s completely necessary and only for business use, it probably counts.
When you’re dealing with Self Assessment, the clock’s always ticking. Here are the big dates and deadlines to watch out for:
When you’re paying your tax via Self Assessment, HMRC doesn’t like waiting. In fact, the taxman hates hanging around so much that he makes you pay tax in advance on money you might not have even earned yet! Here’s how it works:
The good side to payments on account is that, when the January tax deadline rolls around, you’ll probably have already paid most of the tax you owe for the year. The bad side is that the amount you’ve paid is based on estimates. If your income drops from one year to the next, you’ll have paid too much tax and will need to claw some back. Find a specialist accountant or tax rebates expert to help you out.
The fines and penalties for not paying the tax you owe start to bite if you're even one day late with your payment:
When you're claiming a tax refund, the more information and evidence you can show to HMRC the better. You won't necessarily need to keep every last scrap of paper just to make your claim, but a good record of the mileage you've travelled for work is a great start. After that, the more receipts you can keep, the more tax you'll be able to claim back.
If you're really not a fan of paperwork, you could choose to use HMRC's flat-rate expenses system instead. Rather than keeping precise records of what it's costing you to do your job, you can claim fixed amounts that vary depending on the kind of work you do. You'll probably never get back all the tax you're owed this way, but it can be simpler overall to claim it.
HMRC has specific tax bands that determine how much Income Tax you owe, and at what threshold you start paying. For example, here are the 2022/23 tax bands for England and Northern Ireland:
Keep in mind that Income Tax isn't the only thing you'll need to pay from your earnings. There's also National Insurance to consider. Your National Insurance contributions (NICs) will depend on how much you're earning, and whether you're "on the books" or self-employed. Again, if you're employed, this will be handled automatically through PAYE. If you're self-employed, all the calculations will be based on your yearly Self Assessment tax returns.
It's certainly possible to find yourself facing a prison term and a criminal record for failing to pay the tax you owe. If you're found guilty of tax evasion, for instance, you could end up with anything from 6 months to 7 years in prison, not to mention the fines and legal fees involved.
It's not just tax evasion that can land you in prison, though. Every year, for instance, about 100 people are given prison sentences for falling behind in their Council Tax payments.
If child is at least 13 years old (for part-time work) or 16 (for full-time), they can start earning (there are age limit exceptions for certain types of work, like TV or the theatre). If your child's under 16, they won't need to pay National Insurance or be included on your payroll. If they're 16 or over, though, you can pay them a salary through the PAYE system. At that age, they'll be entitled to the National Minimum Wage. Obviously, if your child is already an adult, then all the normal rules for employers apply.
There are specific restrictions about employing younger people, so check the gov.uk site and your local council's rules for more information.
Most people want to retire around the age of 65, or even sooner. The sad truth, though, is that it can be tough to stack up enough savings in your pension pot to hit that target. The earlier you retire, naturally enough, the less money you’ll have to live on – and the longer it’ll have to last. On the other hand, working for a few more years means you’ll be able to save more with less chance of the cash running dry before you do.
We know – it feels weird trying to guess how long you’re going to live, and it’s a more complicated question than it sounds. It’s one of the most important expectations to set when you’re planning your retirement, though. If we start looking at the basic averages for the UK, for instance, a typical 40-year-old Brit who retires at 65 is probably looking at a 17-year retirement period before they shuffle off. Good exercise habits and a healthy lifestyle could bump that up by as much as a decade, though. Those extra years are going to need to be paid for – which means they’re going to need to be saved for.
The next question to ask yourself is what your lifestyle expectations are once you hit retirement. Again, this is a pretty vague and complicated thing to wrestle with, so let’s break it down a bit. Fixing up your home, for instance, can chomp a big bite out of your savings pot. We’re not just talking about renovations, either. You might need to make a few changes as you get older to help you get around. You’ve also got your leisure needs to pay for, like holidays. If you’ve been waiting until retirement to see the world, for example, you’ll need a fair bit of cash set aside for travel. Even just expecting to run a car will drain regular money out of your pot, so it’s important to find a balance between the retirement you want to have and the cash you can realistically stash toward it.
As of 2021/22, the basic State Pension pays out £141.85 per week after you hit the age to collect it. That’s assuming you retired today, because the amounts do change over time. The other thing that changes is how old you need to be to get it. Currently, that age is 65, but it’s already on the rise. People born after the 5th of April 1960, for instance, will have to wait until they’re 66 to claim their State Pensions. People born after the 5th of March 1961, on the other hand, won’t qualify until they turn 67.
That amount’s guaranteed for as long as you live, but in itself really won’t buy you much of a standard of living. In fact, it’s hard to imagine living on it at all. So why have you been paying into it through your National Insurance contributions for all these decades, then? Well, your State Pension can be a major head-start toward hitting your retirement saving goals. By adding guaranteed cash to your income from private pensions for life, it’s a pretty big boost to your overall income.
In his Autumn Statement of November 2022, Chancellor of the Exchequer Jeremy Hunt announced that the State Pension, along with means-tested and disability benefits, would be rising in line with the inflation rate of 10.1%.
With your basic expectations in mind, it’s time to start making plans. It’s actually pretty easy to make the mistake of overestimating what you’ll need to live on once you’ve retired. Paradoxically, that can often leave people feeling like it’s not worth saving at all. The truth is, you really won’t need the equivalent of your working wage after you’ve stopped working. A lot of the day-to-day costs you’ve got used to over the years really won’t be a factor in retirement.
So, as a basic rule of thumb, you’ll probably find you’ll need anywhere between half and two thirds of your working income, based on the final salary you had before retiring. That’s after tax, of course. With that much coming in each year, you ought to be able to keep up the kind of lifestyle you’ve been used to.
Why? Well, for one thing you’re likely to have paid off your mortgage. That alone accounts for a major chunk of most people’s monthly income. If you’ve spent decades of your life paying to bring up kids, the chances are they’ll have left home by the time you retire as well. Then there are the costs involved in actually doing your job – the kinds of expenses you’ve hopefully been claiming tax refunds for all these years. Daily commuting expenses, for example, can be a pretty big drain on your wages, but in retirement those costs just evaporate.
One ballpark figure that a lot of advisers tend to toss around is the rule of 10. Basically, you should aim to have 10 times your average salary saved by the time you stop working. We’re talking about your salary averaged out over your working life here. So, for instance, if that average came to £30,000 you’d be looking at a savings target of £300,000 by your retirement age.
As for actually hitting that impressive target, it actually might not be as tough as it sounds. Again, taking an average yearly salary of £30,000, regularly saving just 12.5% of that could get you there over your working life. It works out as saving £312.50 per month into your pension scheme, assuming 4% growth. Over 40 years, you’ve hit that £300,000 target nicely.
If you’ve got a workplace pension then reaching your £300,000 goal gets even easier, since your employer will be making contributions too. Assuming they match your own contributions, you’d only need to pay in £125 per month to hit the magic £300,000 mark over 40 years. How does that work? Well, your employer’s contributions would double yours up to £250, then the 20% tax relief you get on the total amount effectively bumps it up to £312.50.
As with any other sector, not every mile you travel or pound you spend will count toward your tax refund. As we mentioned above, daily commutes to permanent workplaces don't qualify. To earn you some tax back, the mileage you're claiming for needs to be to and from “temporary workplaces”. Generally, this just means somewhere you work for less than 24 months in a row.
For example, a nursing job that sees you travelling to patients’ homes could be eligible for a pretty decent tax refund. On top of this, subsistence costs while you're on the move can also be included in your refund claim. We're talking about things like accommodation and food costs. Again, while those bills might not seem like much from day to day, they can stack up over time into a healthy tax refund.
Healthcare tax refunds can be complex, especially when you're travelling to a number of hospitals or clinics within the same general area. If your mileage and travel times don't change much between workplaces, HMRC might call the entire region you're travelling in to be a “permanent workplace”. Wrinkles in the rules like this are why it's always best to get professional advice when making your claim. The regulations are easy to trip over, but with the right help you can steer clear of problems. For example, rotational contracts, that have you working full-time at a string of hospitals over years, usually won't qualify for work travel tax refunds. However, training under (for example) a single 5-year contract could mean each workplace counts as temporary. In effect, it's a single employment with multiple temporary workplaces.
You may still be owed some tax back even if some of your costs are being reimbursed by your employer. The rules around HMRC's Approved Mileage Allowance Payments (AMAP) say that, if you're not getting the full amount you qualify for, you can claim back the difference in a tax refund. The NHS has its own rates as well, if you're employed by them.
Importantly, the costs you’re claiming tax relief for must be essential for your work, and being paid from your own pocket. HMRC will expect you to show proof of what you’re spending in your claim, so records and receipts are essential. Once again, though, the Flat Rate Expenses system can offer an easier way if you don’t mind using HMRC’s figures.
If you're buying things like laptops or office equipment for work, you may also be able to claim capital allowances for them. This is generally for items with a fairly long expected lifespan. As always, you'll need to be paying for them yourself to qualify for tax relief.
There are lots of reasons why a healthcare worker might have overpaid their Income Tax. Under PAYE, the tax you owe is taken from your pay before you get it. However, all the “hidden” expenses of doing your job actually qualify you for some of that tax back. These “tax deductible” costs can include things like work travel, professional subscriptions and even upkeep and replacement of equipment and uniforms.
As a nurse working through an agency, for instance, you might have a range of duties to perform throughout a day, using your own vehicle to travel between them. You can’t claim anything for a “normal commute” between your home and your first job of the day, but there's more to work travel than that. All the other trips you make during that day’s work could easily still be covered by the tax refund rules.
There's more. Buying food while you’re out on the road for work can count toward your healthcare worker tax refund as well. Those costs might seem relatively trivial at around £5-£10 a day, but they add up over time – as does the tax refund they earn you.
Other, longer-term costs can also factor into your claim, including professional subscriptions like Royal College of Nursing fees, for instance. Even things like laundry bills for your uniform can count toward your refund, assuming you're paying them yourself. You can't, for instance, claim a tax refund for washing your uniform if your employer has free laundry facilities available for you—even if you're doing the washing elsewhere.
From 13 March 2020, the rules allowed employees to claim statutory sick pay (SSP) if they were unable to work due to COVID-19. This included those who were too ill to work, were self-isolating due to symptoms or who were "shielding" at home due to their vulnerable status.
With SSP, you can get up to £99.35 a week. It can be paid by your employer for up to 28 weeks and will start from the 4th day of you being unable to work. However, if your time off work started before the 25th of March 2022, you can get SSP for the first 3 working days if your absence was due to COVID-19. The same applies if you've received SSP within the last 8 weeks, including the 3-day waiting period before you received it.
For more information, check out GOV.UK.
For those most in financial need, the Universal Credit offers a lifeline. It’s a payment designed to help with your living costs if you’re on a low income, out of work or unable to work. You could receive it on top of SSP as a top-up benefit.
To find out more, check out GOV.UK’s guide to understanding Universal Credit.
For many people, the mortgage is their biggest monthly outgoing. If you've been experiencing difficulties trying to make these repayments, you may be able to arrange a "mortgage holiday" with your lender. This basically means your repayments will be paused for an agreed period—although you'll still have to pay the same amount eventually.
Mortgage lenders agreed with the government to offer these repayment holidays for 3 months to any household facing financial hardship because of the coronavirus pandemic. Meanwhile, many landlords also made use of a mortgage holiday for tenants with money worries.
You may have heard of friends or family being furloughed during the pandemic, or perhaps you’ve been furloughed yourself. The scheme ensured businesses did not have to face tough decisions about losing staff. As the start of the scheme, they were able to claim back up to 80% of a furloughed employee’s wages, with a cap of £2,500 a month.
The scheme was extended to the end of September 2021, when it finished.
In recognition of the increased risk faced by staff during the crisis, a new life assurance scheme was launched for eligible frontline health and care workers during the pandemic.
The families of workers who died from coronavirus in the course of their frontline essential work received a £60,000 lump sum, worth roughly twice the average pension pay for NHS staff.
Some charities accepted applications for grants during the pandemic, and continue to do so. For example, the Cavell Nurses' Trust offered support for short-term financial emergencies, including many situations arising as a result of coronavirus, including the need to self-isolate or a reduction in a partner’s income. you can find details on how to apply for current grant schemes on their website.
You could also explore other charitable grants using Turn2us, which searches for benefits and grants you may be eligible for.
When your debts are getting out of control, it’s critical that you take full advantage of the help on offer. For basic, practical and effective guidance, you could do a lot worse than the Citizens Advice Bureau or National Debtline. Another option is Stepchange, a charity dedicated to helping people conquer their debt problems. They help 650,000 people a year, with specialised services for people with mental health issues and a free advocacy system.
For local help, you can find a list of nearby debt services at the Christians Against Poverty website. Just enter your post code to get started. There’s also a fantastic list of helplines and support groups for mental health issues on the NHS website, covering everything from stress and depression through to panic attacks and bipolar disorder. There’s even a specialist charity called The Lighthouse Club for the construction industry, where mental health is a serious issue. They have a dedicated helpline and even a construction worker mental health app.
Turning 18 holds great significance. It’s a time full of promise and marks your journey to becoming an adult. You can register to vote, buy your first pint and even get married without parental consent. It may also be a time that your child looks to begin their undergraduate degree.
You’ve probably heard of the tuition fees that can cost upwards of £9,000 a year. Thankfully, the cost of this is covered by the Student Loans Company and will only begin to be paid back once your child earns over a set amount.
Maintenance loans work in a similar way although these are often used to cover day-to-day living costs such as transport and food. The maintenance loan amount is calculated on your household income, as technically, the more you earn the more you can afford to support your child.
Unless living at home, accommodation will be an extra cost that may have to be covered by yours truly. Times Higher Education found the average cost of accommodation to be just under £5,000 a year. As undergraduate degrees usually last three years, that’s £15,000 in total. If based in locations with high rent such as London, you could have to fork out even more.
This would be a scary cost to most parents, so we’ll help you figure out how much you’d need roughly to save for your child before they enter the big wide world.
The best place to start is with a budget. After all, if you don’t know how much something costs on average, the chances are you’ll end up spending a lot more than necessary. Of course, one of the biggest factors in the cost of your holiday really is where you go. But once you’ve picked your destination, have a look online or in travel agencies to see how much travel and accommodation should cost. And if it’s any cheaper to bundle them together.
Then, think about how much you’ll spend each day you’re away, including tickets for any excursions, and add that to the price of accommodation and getting there. That should give you a pretty clear idea about what to budget for your trip.
However much you think the holiday should cost, put aside a bit more. While it’s tricky to anticipate things like car breakdowns and plumber callouts, these are the kind of expenses that could derail your holiday fund. If you expect the unexpected, you’ll be able to solve that short-term emergency and still get that relaxing break.
Even if you haven't decided where you’re going, having any kind of saving plan in place puts you in a great position when you finally pick your destination.
If you’re unsure where to start, how about saving £3 a day? By putting aside just £3 each day, you’ll have £1,100 in a year’s time. That’s enough to get you to the other side of the world, and all for the price of a daily cup of coffee.
Our free 50/30/20 spreadsheet automatically divides up your income into three main categories:
If you’re anything like us, you’ll have multiple streaming services that you pay for, whether it’s for music, films, TV or books. Each of them are pretty good value for money, but altogether, if you’re paying for a few at a time, It can work out quite costly. If you’ve forgotten about one of the services you pay for, or you’ve simply stopped using it, just cancel it! Most run on a rolling monthly basis at £10 a month, so put that tenner straight into your holiday fund instead. £120 after a year could get you a seat on a return flight to Europe. There are ways to save as you spend, too. As of January 2022, 27% of British adults have opened an account with a digital-only bank. Soon, 93% of us will be banking online somehow, whether on apps or at our desktops. With your average bank account nowadays, the interest rates are pretty low, but apps have made it easier than ever to control our money and save towards a target. Banking apps like Monzo, Revolut and even NatWest all have a saving pot feature. You can set up a savings pot for that Summer holiday, and whenever you make routine purchases, it’ll round up to the nearest pound and put the spare change in your holiday fund. If it’s a big trip you’re planning for, you’ll need to save for it longer than you would for a weekend in Paris, for example. If you can wait a year for that holiday of a lifetime, why not put the money you save up into an ISA? ISA stands for individual savings accounts, and they’re tax free up to a certain amount. That means you don’t pay tax on the interest your savings gain. You’ll need to have your money in an ISA account for a year to earn the interest, and of course, some have better interest rates than others. Check out our video below to learn more about the different kinds of ISA that are available.
In most cases, wherever you go, the cost of getting there can vary massively and it pays to book early. That same seat can treble in price by the time your holiday rolls around, so get things off to a flying start by booking as soon as possible.
Before you start booking, remember to clear your cookies, and deny any unnecessary cookie permissions on any sites you visit. Many online booking websites use a dynamic pricing system that tracks the price you’ve been given for flights and package deals. Then, the price increases when you search repeatedly.
If you think you’ll forget to deny those permissions on each website visit, use an alternative browser that opts out of cookies, like DuckDuckGo.
Another great way to save on the cost of getting there is with reward schemes. For instance, Tesco Clubcard points can be exchanged for Virgin Atlantic points. These can be used to pay for flights to certain destinations. Think about that – your weekly food shop could pay for your airline seat!
If you’re not signed up to any reward schemes, don’t worry – there are still plenty of things you can do to make that ticket a bit cheaper.
Don’t just settle for the first price you see for a return flight. Price comparison sites like Skyscanner and Kayak not only compare the price of flights on the same day, but can also show you which day is the cheapest to fly in a certain month. So, if you’re flexible, keep in mind you can save a bundle by travelling on a certain day.
Once you’ve picked the days you’ll be away, take a look at the different times that are available. Night flights may be a pain, and you may have to go nocturnal for a couple of days, but they can be around 30% cheaper than afternoon flights. And much cheaper than flying out in the morning.
Finally, look out for the hidden charges before you book your seat. What does your ticket actually include? Many budget airlines offer very tempting flight prices, but once you get to the till, you find that some things are missing. Like your cabin bag, suitcase, and the chance to sit next to your partner or travel companion.
Paying for each of these things can take the total to more than you would’ve paid for other airlines that include them in their fares.
Whether you want to visit museums, go on a city tour, or any other excursion. These activities are nearly always cheaper when booked online and in advance than they are on the day at the box office.
Instead of getting stung by door prices when you get there, plan your days in advance and book your tickets before you arrive. Even if you only save a euro or two, that’s money you can put on your restaurant bill that evening. Make your cash go further!
Some of the banking apps that we mentioned previously, have a savings pot feature allow you to temporarily change your payment settings, so every time you pay by card, it comes straight out of the holiday pot instead of your normal account. That means that you’re only spending the money you’ve budgeted, and the money in your normal account stays untouched.
If you are planning on using a card instead of cash while you’re away, make sure you know about any fees you might incur before you go. Some banks will limit the amount of money you can withdraw without charge when you’re abroad, while some charge a fee for every transaction you make.
Look out for cards that don’t charge any fees for transactions, and also cards that go by the MasterCard or Visa exchange rate. Visa tend to offer a better exchange rate than MasterCard, but both are usually better than you’ll find at a bureau de change on the day.
That being said, if you’re planning to take local currency with you in cash, keep an eye out for the exchange rate before you go. You can find the best deal for exchanging currency on price comparison websites, so take a look before you get your money sorted!
Home equity loans and home equity lines of credit (HELOCs) are another kind of general agreement where you don’t need to use the cash for any pre-arranged purpose. The twist with these ‘second mortgage’ types of deal is that they let you borrow up to a given percentage of your ‘equity’ in your own home (meaning how much of its cost you’ve paid off).
A basic home equity loan comes as a lump sum, which you pay back like a normal instalment loan. The terms will probably stretch out over 5 to 30 years, depending on what you’re borrowing. With a HELOC agreement, on the other hand, you’re signing up to more of a revolving credit arrangement. You can draw cash out up to a set limit as you need it, and only pay interest on what you’ve actually taken out. 20 years is standard for a HELOC plan. While a home equity loan will have a predetermined interest rate, HELOCs generally have variable ones.
Coming in a tenner cheaper than the newer 4th Gen model, this easy-to-use device has a built-in speaker to handle all your audio demands. It’s hooked up with the Alexa AI system, meaning you can ask it questions and get an instant reply. It’ll keep you up to date with the latest news and weather reports, and connect to your other smart home gadgets to control your lights, thermostats and even door locks. A very cool, low-cost system, ideal for beginners.
Compatible with over 5,000 smart home devices through the popular SmartThings system, this hub has a lot to offer. It’s pretty much ideal if you’re after the full “smart home experience”. From heating and lighting to security and entertainment, the Aetoc hub lets you create routines and custom automations to suit your own needs.
This is the main Apple rival to the humble Amazon Echo Dot. Instead of Alexa, it uses the Siri AI assistant system. Again, you can get it to answer questions, search the internet for information and control your smart gadgets with your voice. If you’re already a big Apple device owner, it’s a very nice addition to your home set-up. You can even hook it up to other Homepods to work as an in-home messaging system. It can recognise up to 6 people’s voices so no one’s left out of the loop.
Fitting good quality insulation around your hot water tank isn’t just good for your household budget; it’s good for the Earth, too. A decent insulation jacket will bring down a typical household’s carbon emissions by a massive 110kg per year. At the same time, you’re reducing the heat loss from your tank, so your water stays hot longer. It’s a win/win situation for everyone.
It’s not always easy to know how far to trust the advice you get in any walk of life. Luckily, with tax advisers you can check their credentials fairly easily. A good adviser will have properly regulated qualifications from a professional body to show you, so you’ll know their skills and knowledge are both up to standard and up to date. A fully accredited tax adviser has to have Professional Indemnity Insurance, too.
Here’s a quick list of professional bodies who can point you in the right direction when you’re looking for a tax adviser:
Tax relief can put money back in your pocket by refunding certain essential work expenses. You can claim an HMRC tax rebate for expenses like business mileage, professional subscriptions, and necessary tool replacements. The more you spend on eligible expenses and the higher your tax band, the more tax you can reclaim. If your claims exceed £2,500, a Self Assessment tax return is necessary, which RIFT can handle for you.
Check out our tax refund claim checklist for more information on HMRC tax rebates, and to see how RIFT gets that money back in your pocket.
Whether you work part-time around your studies or do some temping or casual work in the holidays, when there’s money coming in Her Majesty’s Revenue and Customs (HMRC) wants to know about it. If you’re working for an employer, then you’ll usually have tax taken off your pay through the Pay As You Earn (PAYE) system. Under PAYE, HMRC basically swipes a slice of your cash directly from your employer before you get it. It’s a pretty simple system when it works properly, but there are a few wrinkles that can see you paying more than you should.
When you’re your own boss, things are a little different. HMRC won’t necessarily chase you for every penny you make selling things online or whatever. If you’re making over £1,000 a year, though, the taxman will probably decide you’re running a business. That means you’ll have to register yourself as self-employed and start filing Self Assessment tax returns every year. Basically, HMRC will want to hear about all the money you’ve got coming in and going out of your business. You’ll only be taxed on your profits, so the cash you splash just to stay afloat can often bring down your total tax bill. Self Assessment comes with a set of deadlines to hit and rules to obey. The penalties for getting it wrong can be pretty nasty, too, so always go in with your eyes open.
There are other kinds of tax as well, like the Value Added Tax that gets lumped onto most of the things you buy or Council Tax you pay on the value of your property. For most students, though, it’s Income Tax that trips them up, so it’s really worth getting comfortable with the system early.
National Insurance isn’t exactly a tax, but it’s still pretty much collected like one. It’s used by the government to cover the costs of things like state benefits and pensions. If you don’t keep your payments up, for instance, then you might find yourself out of luck (and pocket) when you hit State Pension age. Employed people pay Class 1 NICs, again collected by their employers. Self-employed people pay Class 2 (flat weekly rate) and Class 4 (based on profits) NICs.
Another quick thing to keep in mind is that tax systems aren’t necessarily always going to be the same through the whole UK. Scotland, for example, has had its own Income Tax scheme since 2017. The rates and thresholds it sets are different from England’s. Wales can also partially set its own rates, by essentially lowering the amount of tax the UK government collects, but adding in a Wales-only tax rate on top. In practice, so far, it makes no difference to the total tax paid, but that could change in the future.
Your employer has to give you a P45 when you leave a job for any reason. That said, depending on your situation, you might not get your P45 on the exact day you leave. Generally, though, you ought to get it very soon after your tax and other deductions are sorted out for your final pay period at the job.
A P45 only counts for the specific tax year it refers to. Tax years run from the 6th of April in one calendar year to the 5th of April in the next. If you start work at a new job in the same tax year as you left your old one, you can show your P45 to your new employer so they can put you on the right tax code.
Just like house prices, mortgage deposits can vary greatly. Generally, you can borrow up to 95% of a home’s market value - meaning you’d only need to make up the other 5% with your deposit. One thing to keep in mind is that, because you’re borrowing a larger amount of money, your repayments could cost a lot more than if you were to pay a bigger deposit.
Quite often, the best mortgage rates only become available if you pay a minimum deposit of 20%. Over time, this could work out cheaper as you’d pay less interest over the duration of your mortgage. Some banks may also have hidden clauses that require you to put a minimum deposit down. Some examples are if you’re a first-time buyer or your home isn’t a new build - so it’s definitely worth doing your research before applying.
With all this in mind, it's finally time to look at the fun stuff - properties. Property values around the UK also vary in value depending on where you’re looking to buy. According to the Office of National Statistics, the average house price in London comes in at just under half a million pounds. While if you were to look in the North East, you’d be looking at around £145,000.
This is a big question, and it’ll shape basically every decision you make when you’re buying your home. Generally speaking, you can expect a bank to set a cap of 4.5 times your yearly salary. If you’re combining 2 people’s incomes for your calculations, you might find they set it at 3.5 times that combined figure.
So, for a mortgage based on a single salary, you're probably looking at a maximum of:
If you're a couple using both incomes for the deal, those maximum figures would be:
It’s all too easy to get carried away with the cute stuff! Some UK sources report people spending anywhere between £6,000 and £12,000 in a baby’s first year.
Child Poverty Action Group’s ‘Cost of a Child’ report estimates the cost of raising a child until the age of 18 is £71,611 for a couple and £97,862 for a lone-parent family. If you also have childcare costs, that bill can be as high as £185,413.
In the first month alone, you can expect to spend around £500. MyVoucherCodes have worked that out as:
…and 64% of those asked said they weren’t prepared for that spending. The good news is that there are a few ways you can keep those costs down…
There are so many nice things you can buy for babies it can be difficult to know when to stop! But if you can resist all that cuteness, you’ll be doing your bank balance a favour. Don’t forget, babies go through growing stages quickly so some items you’ll only need for a short period.
If you’re money conscious, think value for money first and foremost.
Cot or cot bed – for safe and comfortable sleeping.
Bedding and blankets – pillows and duvets are not safe for small babies.
Baby clothes – a week’s worth of stretch suits and baby vests are essential. Cardigans and clothes for layering are recommended. ‘going out’ clothes are a nice to have but not essential. If the weather’s cold, you’ll also need a hat and mittens.
Sterilising or feeding equipment – If you’re bottle feeding, you’ll need to keep everything sterile.
Pram or pushchair - to choose a suitable model, think about where you’ll be going and whether you’re using the car or public transport. New babies need a fully reclining pram or pushchair so that they can lie flat.
Car seat – if you have a car, a car seat is a legal requirement.
Travel systems can be a good investment as they have a car seat and can grow with your baby’s changing needs.
Your baby budget will depend on your income and other outgoings. Working out what it is means you can stay within it and not get into debt with a new baby.
The most important thing to factor in is how your income might change. If you can take advantage of full maternity and/or paternity leave with pay, that makes life a whole lot easier. If not, or you want to take more time off work without full pay, it’s time to plan ahead.
Knowing what you’ve got coming in is essential to planning your parental leave – and being able to afford it. If you’re working, you will most likely be entitled to maternity or paternity pay. Lots of employers offer enhanced maternity terms and conditions above the statutory payments on offer.
Maternity Leave
According to gov.uk, eligible employees can take up to 52 weeks’ maternity leave. The first 26 weeks is known as ‘Ordinary Maternity Leave’, the last 26 weeks as ‘Additional Maternity Leave’.
The earliest that leave can be taken is 11 weeks before the expected week of childbirth, unless the baby is born early.
Self-Employed
You can get between £27 to £156.66 a week for 39 weeks if you're self-employed. How much you get depends on how many Class 2 National Insurance contributions you've made in the 66 weeks before your baby is due. Find out more about maternity leave and your entitlement here .
Paternity Leave
If you’re employed, you may be entitled to two weeks paid time off – find out more here.
The statutory weekly rate of Paternity Pay is £156.66, or 90% of your average weekly earnings (whichever is lower). Any money you get is paid in the same way as your wages, for example monthly or weekly. Tax and National Insurance will be deducted.
If you’re self-employed, the bad news is you’re not entitled to a statutory paternity payment. The good news on the other hand is that, if you can afford it, you can take as much time as you like. That’s why a little financial planning can go a long way!
Plus, if you’re self-employed, you may be due a tax refund which would go a long way to helping you take care of the cost of a baby – find out more in out Tips & Tricks section below. Focus on the due date and put plans in place to help manage your work – and your cash flow. Babies don’t always play ball when it comes to dates and times, so you’ll also need to be flexible.
Planning for a baby includes considering how you’ll pay for the things you need, and also affording the time to enjoy this very special moment in your family’s life.
And the time to do that is before baby gets here. If you haven’t already, use the free baby costs calculator above to work out your baby budget. Once you have a good idea of your budget, you can begin to allocate it. That means being savvy with all of your spending. And for spending read saving…
Decorating a nursery can wait! Take a little time to check your household bills, making sure you’re on the right tariff, and see where you can save on groceries. Having another mouth to feed is another good reason to be smart about your supermarket shop. Use comparison sites to get a better deal and think about those subscriptions – there may be a few you can cut back on.
It’s your choice, of course, but it’s worth considering that breastfeeding is pretty much free! There’s no expensive formula or feeding equipment to buy. Breastfeeding even for the first few months will save you money at an expensive time.
Yes disposables are super handy but they’re also super expensive! Reusables are still more cost-effective when you count in the costs of washing and drying. And disposables are terrible for the environment. Do the world and your bank balance a favour and find out more from the nappy experts online – there’s lots of advice out there on the best brands for you.
Perhaps your best source of second-hand goods, family and friends are often incredibly generous when it comes to passing on or selling you the essentials for a good price. Another advantage is that you’ll know the equipment has been well looked after.
A lot of baby equipment only gets used for a short amount of time so is often in really good nick when a baby outgrows it. Check Facebook or other similar local sites for items such as car seats and clothing bundles.
They know where the good, free and discounted stuff is AND of course you’ll meet lots of new friends who can share support, hints and tips about raising a family.
The big supermarkets often have baby events when they offer bulk buy special deals. And you’ll also find that when new stock comes in, last season’s stuff gets discounted. Fashion changes quickly too so when a new trend comes around, there are bargains to be had.
That’s what they’re for! Especially at birthdays and Christmas. Very young babies won’t need too much stimulation so don’t get carried away with all the bells and whistles.
Use price comparison sites. Check prices online and in store. Use discount codes.
Search Bumdeal for the best priced nappies for your baby, right now.
You can boost your budget – and clear space in your house – by reselling old toys and baby equipment. When your child outgrows a car seat, for example, unless you’re keeping it for the next one (!), think about passing it on or putting it on Facebook – it’s free!
Would a tax refund help?
An average 4-year tax refund from RIFT comes in at around £3,000. That could be enough to help you take unpaid time from work, make sure the mortgage is paid or help you get through baby’s expensive first year.
2 out of 3 people don’t know they qualify for a tax refund – check if you do by answering 4 quick questions and start your claim for FREE here.
There are some specific laws about redundancy notice, meaning the length of time between them telling you about it and your last day of work for the business. The exact minimum notice period spends on how long you’ve worked there. Here’s how it breaks down:
There’s a cap of 12 week’s notice, meaning they don’t need to give you more time if you’ve worked there over 12 years. However, your contract may say you’re entitled to more, so make sure you check that thoroughly.
Another thing to check your contract for is any mention of ‘alternative’ notice periods. In some cases, for instance, your employer might offer you pay ‘in lieu’ of notice. That is, you could be offered a lump sum of cash instead of working out your notice. Keep in mind that this isn’t a complete windfall, though. It still counts as taxable income as normal.
Another term you might hear floating around is ‘gardening leave’. Basically, this just means you’ll continue to get your normal pay throughout your notice period, but you won’t actually have to do any work for it. Technically speaking, you’ll still be an employee during this time, though – and you could actually be called back in to work if your employer needs you unexpectedly.
If you’ve been in the same job for a minimum of 2 years, you qualify for redundancy pay. You’ll have to apply for it inside 6 months from when your redundancy started, though. There are several factors that play into how much you’ll get, from your age and salary to the length of your time with the company, so let’s talk about those next.
The first thing to know is that there’s an upper limit to how much your employer needs to pay you. When they work out how long you’ve been in the job, for instance, there’s a 20-year cap on the calculations, and only complete years count toward it:
Again, though, you should always check what your contract says about this. It might turn out that you’re entitled to more.
Next, your age comes into play. For each week of redundancy pay you’re due (remember each week equates to a year of working in the same job), you can get:
Keep in mind that the redundancy pay you’re entitled to for a given year of work depends on the age you were at the time, not the age you were at redundancy. This means that different years of work could entitle you to different amounts of redundancy pay.
With 50% of young people now going to university, a flip of a coin would give you the same chance of your child wishing to go into higher education. To give some perspective on how much that £5,000 a year would’ve cost when you were younger, we’ve roughly worked it out by decade.
Depending on when you turned 18, it may be worth asking yourself if you would’ve had these amounts saved.
Even without university fees, just supporting a child until they reach 18 can cost a significant amount. A study by Child Poverty Action Group found the cost of raising a child to the age of 18 to be over £160,000 for a couple and £193,000 for a lone parent. That works out to be £9,000 a year for couples and £10,750 for a lone parent.
With the right information, you can help manage your money and plan for the future. If just starting out, we’d suggest watching our How to Save Money in the Bank video that goes into more details on how to save for short, mid and long term life goals.
It’s really important that we stress that this is a summary of the common scenarios that parents may face and not a definitive list. Often these amounts can differ depending on your personal circumstances. And remember, these are just a few of the options available to you. If you’re ever in doubt, speak to a financial advisor.
Stamp Duty’s a cost that’s all too easy to overlook when you’re sorting out your finances to buy property. Your mortgage lender, for instance, won’t step in to offer extra cash to cover it. This means you’ll have to make your own arrangements, setting aside what you’ll need in advance. While you’re at it, think about the other “hidden” costs of buying a home. Solicitor’s fees, removal bills and so on all need to be taken care of and budgeted for.
Working out beforehand what you’ll end up paying is absolutely essential here, to avoid some very nasty surprises down the line. You should also put some thought into what you could do to bring some of those costs down. As we’ve already discussed, buying a house that’s worth less than £300,000 as a first-timer means you won’t get lumbered with any Stamp Duty. Beyond that, you could potentially reduce your up-front deposit to help cover your SDLT charge – although you’d probably find it harder to get a good rate from a lender that way. A better approach in general would be to think of Stamp Duty as if it were an extra lump to pay alongside your deposit so you can work it into your budgeting from the start.
As for the budgeting itself, there are some basic strategies that can pay off pretty reliably. In fact, you should probably be using some of them anyway, just to keep control over your everyday finances. Bringing down any rent you’re paying can be a big help - perhaps by moving to a cheaper place while you save up a deposit, for instance.
As for basic money management, we’ve talked about the 50/30/20 rule and zero-based budgeting in a few of our other articles, and they’re definitely worth putting into action when you’re planning to buy property. You could also check out our guide, “Easy Ways to Save for a House on a Low Income”, which covers several other options you might want to consider.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
As of 2021/22, the Stamp Duty Land Tax rates on residential properties are:
| Up to £1250,000: | 0% |
| The next £125,000 (the portion from £125,001 to £250,000): | 2% |
| The next £675,000 (the portion from £250,001 to £925,000): | 5% |
| The next £575,000 (the portion from £925,000 to £1.5 million): | 10% |
| The remaining amount (the portion above £1.5 million): | 12% |
So, using an example from the government's own website, the SDLT you'd have to pay on a house worth £295,000 would look like this:
| 0% on the first £125,000= | £0 |
| 2% on the next £125,000= | £2,500 |
| 5% on the final £450,000= | £2,250 |
| Final total= | £4,750 |
Those are the basic rules that most people need to remember when they’re buying a home. However, there’s some extra help built into the system for first-time buyers.
If you're covered by that rule, and you're buying a property worth £500,000 or less:
Basically, you just need to sit back and wait. Your old boss is legally required to shoot you a P45 after you’ve moved on. Obviously, you won’t have a P45 when you start your first job - but your new employer should sort you out there. When you’re starting PAYE work for the first time, they’ll give you a Starter Checklist to complete. You’ll need to get this done as early as possible so your boss can get your tax code squared away and you can be paid properly. You’ll also end up going through a Starter Checklist if you lose your original copy, because you can’t just get a replacement P45. The same goes if you haven’t had a PAYE job in more than a year, or if you start a second job without giving up your first.
Assuming this isn’t your first job, and your old boss doesn’t send you a P45, you need to start kicking up a fuss. That means nudging them directly to request your P45 – and doing it repeatedly if necessary until you get your form. They’re breaking the law if they don’t send it, so don’t be afraid to shout out.
To be sure your claim's handled properly and effectively, you can have a tax professional get things moving on your behalf, like us at RIFT Tax Refunds. Alternatively, you can kick the process off yourself on the HMRC website.
Once you know what to expect from your mortgage offer, and what the property you’re buying will cost overall, you can start planning how to save up the rest. Having that specific target in mind will give you a good idea of how long it’ll take to save what you need.
If you’ve read any of our other articles on winning strategies for savers, then you’ve probably already heard us talk about zero-based budgeting and the 50/30/20 rule. You can get the full details by checking out 4 Fixed Income Saving Strategies – Combine to Win! But here are the basics in brief:
Another essential saving tip is to pay down your debts as soon as you can. In the long run, interest on money you owe will almost always stack up faster than on money you save. Over time, your debts get heavier, and can easily end up outweighing the benefits of saving.
With saving, little and often is usually a stronger strategy than occasionally dumping in larger amounts. See our 12 Everyday Money Saving Hacks article for some tips on how to develop good saving habits. It all mounts up with time.
You should also consider whether you could cut the costs of any rental deal you’re on. Rent can eat a huge chunk out of your monthly earnings, and can be very painful when you’re trying to save for a house. If you’re living on your own, for instance, you might try looking into a flat-share arrangement instead. If you don’t already know anyone you could team up with, there are flat-sharing websites that can help you out. A variation on this is co-living, where you share things like kitchens and shared spaces in a purpose-built property but still rent your own room.
The main thing is to keep your expectations realistic and be patient - and remember to celebrate your saving successes! When you’re on a lower income, any saving you do is a definite win. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Otherwise known as Easy Access accounts, these accounts are great for stashing away money for the short term. As you can usually withdraw from these accounts at a moment's notice and without charge, they come in handy in unexpected circumstances. Broken boiler? Simply transfer the money over to avoid using your credit card. Now we know that building up a safety blanket isn’t easy for some. A 2020 survey by Shelter and YouGov showed that nearly 40% of UK households are a single paycheque away from homelessness. Try your best to put away whatever you can into Instant Access savings. This way you can reduce the impact of unexpected bills. If you ever find yourself dipping into these savings, you may want to build your funds back up to the previous amount to provide some much-needed security.
Although instant access savings are great for withdrawing money easily, they do come with some downfalls. If the rate of inflation is higher than the rate of interest, your money will lose some of its spending power the longer you leave it there. Let’s say you had £1,000 saved and inflation was higher than interest rates by 3%. If this was true for a year, your money would be worth £30 less. This is where mid-term saving methods come in handy.
Financial advisors often define mid-term goals as an upcoming expense that will take place between three to ten years from now. This could be a new car, a wedding, a dream holiday or even a first home deposit. If saving for your first home, a Lifetime ISA (or LISA) could be right for you. You can deposit up to a maximum of £4,000 a year with a government boost of 25%. If you deposit the maximum amount in a financial year, you’d end up with £5,000 in total. Even better - any returns that you make from interest are completely tax-free. However, if you were to withdraw for any other reason than buying your first home, retirement or terminal illness you would lose the government boost. If you already own a home or aren’t looking to buy just yet, bonds are often seen as a good option by financial advisors. We’ll go over two types: Fixed-Term Bonds and Government Bonds. Fixed-term bonds, otherwise known as a fixed-rate savings account, works by locking your money away for a set amount of time and paying you a set interest rate for that time. Depending on the bank, you can either choose how long you lock your money away for or they may choose set intervals.
The perks of these accounts are that the interest rates are often higher than instant access savings and because the interest rate is fixed, you’ll know exactly how much you will earn. However, as the accounts are designed to be fixed-term, you may have to pay a penalty fee if you need to access your money before the agreed time. For this reason, it’s important to only put away money that you know you won’t need for that time. Government bonds, known as gilts in the UK differ slightly from fixed-term bonds. In the case of gilts, your money is loaned to the government in exchange for interest. Governments will often use these loans to finance projects such as infrastructure outside of the taxes they raise. Once your money is given to a government, you will be given a coupon that will pay you a set level of interest at regular intervals. Once the bond reaches its maturity date, your original sum of money known as the principal will be returned to you. For instance, if you invested £5,000 into a 5-year gilt with an annual interest rate of 5%, you’d receive £250 a year for 5 years before receiving your initial £5,000 back. Different bonds have different maturity dates so it’s important to pick an amount of time that you will not require the money back. Although all investments carry some element of risk, established economies are seen as low-risk when compared to other countries. In the case that you did need to get some money back, you can sell your bond on the open market but as with all investments, you can lose money as well as make it.
Long-term goals are anything that you wish to achieve over 10 years from now. The main examples are helping your kids out or retirement. Now, there’s a reason that we’ve not mentioned compound interest so far. This is because it often takes over 10 years to see any notable difference. Put simply, compound interest is when you earn interest on the money that you’ve saved AND on the interest that you’ve earned. Imagine compound interest as a snowball rolling down a hill. As it collects more snow or interest in this case, the snowball will gradually grow in size. The longer you leave it to collect interest, the bigger your savings will grow. To calculate how long it will take to double your money you can use the Rule of 72. Simply divide 72 by the interest rate. If interest rates are 2% on average, it would take 36 years to double your savings if left untouched. However, in recent years the interest rates of banks have been significantly lower than this - meaning that it would take more than a lifetime to double your savings.
Investing in the stock market is often suggested as an alternative for the mid-to-long term. Stock-market investments tend to do better than cash if left long enough to ride out any highs and lows of the market. Typically speaking, this is said to be a minimum of 5 years. Now that is not to say that stocks come without risk. There is a possibility that you could lose the entirety of your investment as well as make a large profit. There are certain types of investing that are said to reduce this element of risk. By spreading your money across a number of markets and industries, something known as diversification, you can reduce the likelihood of your entire investment losing its value. It’s really important that we stress the importance of never investing money that you simply cannot afford to lose. If you do choose to invest, make sure you do it responsibly. And remember, these are just a few of the options available to you. Certain methods of saving are suited for both personal and financial circumstances. So if ever in doubt, speak to a financial advisor.
The income tax bands for England and Northern Ireland in 2023/2024 are as follows:
Scotland and Wales have their own tax bands. Wales generally aligns with England and Northern Ireland, while Scotland has unique rates.
Tax relief allows you to claim refunds for certain work-related expenses. The amount you can claim depends on your expenses and tax band. For claims exceeding £2,500, a Self Assessment tax return may be required.
Tax codes can be tricky business. In an ideal world, your code will let HMRC know of any circumstances affecting the tax you owe, along with how much you can earn tax-free. However, tax codes change over time, and they might not always keep pace with your situation. If your code changes unexpectedly, you can either kick up a fuss with the taxman to find out why or have an expert look into it for you. What you really shouldn’t do, though, is ignore it and assume it’s someone else’s problem to fix. If HMRC agrees there’s a problem with your code for the current tax year, then any refund you’re owed will come through the PAYE system.
You might get a P800 letter from HMRC for the previous tax year, which will explain how to get any refund you’re owed. They’ll only send one of these out if they already know there’s a problem, though. If you think you should have been sent a P800 but don’t have one, it’s time to contact the taxman and sort it out.
If your tax problems go back further, you might still be in luck. You can actually claim tax refunds stretching back up to 4 tax years. You’ll need to be pretty sure of your footing, though, so talking to a professional might be a smart move.
Here’s where things get a little more technical. When it comes to investments, there really is some truth to the old warning about putting all your eggs in one basket. That’s why the trick most advisers recommend is to “diversify” your investing so you’re not betting everything on one horse. The trouble is, unless you’re a stock market professional with some experience in the game, it’s tough to know where to put your money. If you’re new to investment – and even if you’re not – then an index fund might be a good option to look into.
Index funds are a kind of “mutual” investment you can use to manage your overall risk. Instead of dumping all your cash into a few hand-picked businesses, an index fund tracks a “market index”. It’s like a cross-section of how a particular market’s moving, instead of handcuffing your money to the fortunes of any one company. A “total stock market index fund”, for instance, is designed to track trends within the overall equity market. It’s like owning a bite of the entire market in a single investment, so if you’re looking to sock away a retirement portfolio, it’s a great way of diversifying your investments.
Index funds have several basic advantages to offer over going fully “hands-on” with your investment choices. For one thing, they can severely cut down the time you spend picking through your individual investments. The portfolio manager of your fund handles a lot of the essential research for you, investing in an index with the kind of stocks you want to put your money into.
At the same time, you’re diversifying your stocks to help protect your overall investment. Spreading your money around with an index fund means you’re less likely to take big losses if a couple of your investments go bad. Index funds can also be much cheaper than having your own fund manager hand-picking your stocks for you, along with being pretty tax-efficient. Since there’s less buying and selling going on than with an actively managed fund, you won’t be stacking up a load of extra capital gains onto your tax bill.
Let’s take a look at some of this in action. The Vanguard Growth ETF (exchange traded funds) list tracks the performance of a range of “growth stocks”. These are basically just stocks that are expected to do better than average in their fields, from technology to healthcare. According to Vanguard, this list is ideal if you’re new to the game, because of its lower minimum investment amounts and real-time pricing reports when you buy and sell. It’s a decent balance between having things managed for you and still having control of your transactions.
With the Standard and Poor’s 500 stock market index (S&P 500), you’re looking at 500 of the most profitable companies in the United States. We’re talking huge names like Apple, Amazon and Microsoft here – companies with long track records of flexing some serious money muscle. Annual returns from the S&P 500 index, as you’d imagine, have historically been strong – around 9% to 10% being fairly typical. Like any other investment, though, things can still go wrong even with world-leading businesses. For instance, in the chaos of the 2007 financial crisis and Great Recession, the S&P 500 dropped 57.7% between October 2007 and March 2009. Even so, it had completely recovered by March 2013. 2020’s COVID-19 pandemic dropped it by half again – but once more it bounced back by the end of the year to hit an all-time high in October 2021. In fact, in the entire history of the S&P 500, no 20-year investment has ever ended up in a loss. As we keep on saying, investment is a long-term game where the real rewards only come with time.
The first thing that tends to muddy the water when we talk about inflation is that not everyone measures it the same way. After all, not every price is going up by the same amount at the same time. Depending on which kinds of goods and services you're keeping an eye on, you'll come away with a different idea of how sharply overall prices are going up.
There's an organisation called the Office for National Statistics that keeps track of inflation (along with a lot of other things). To do this, they pick out a 'basket' of more than 700 things that they reckon a typical buyer will regularly splash out money on. That includes everything from basic essentials like food and transportation to holidays and health costs. By tracking the changes of that make-believe basket from year to year, they work out how much more we're having to pay for them then before. Because it deals with the day-to-day costs of typical people, this way of measuring inflation's called the Consumer Prices Index (CPI).
Here's where things get a little more complicated. The CPI isn't the only system that's used to work out the overall rate of inflation. The CPIH statistic, for example, includes housing costs for homeowners in its basket as well. There's also another system called the Retail Prices Index (RPI), which uses different goods and methods to come up with its calculations. RPI used to be the main figure people referred to when they talked about inflation, but it's basically been replaced by the CPI now.
When the rate of inflation hit 10.1% in July 2022, it was treated as a pretty big deal—and if you crunch the actual numbers, it's not difficult to see why. With inflation at 10%, it means you're paying £11 for every tenner you would have spent last year, assuming you're buying the same amount of the same things. That tenner you have in your pocket is therefore worth less than it was the year before, since you can buy less with it. Assume that you're spending £1,000 instead of £10, and suddenly your costs are going up by £100 from one year to the next.
Because inflation's measured as a percentage, the bigger the purchase the more the price rockets up. In fact, it can still get pretty scary when you work out what all those price bumps on smaller purchases add up to, as well. That's why governments set themselves a target for inflation, aiming to stop it from spiralling out of control. With the inflation target set at 2%, it's then up to the Bank of England to hit the mark. Why 2% instead of 0% or even less? Well, strange as it sounds, having an economy's inflation rate fall too low can actually be a little unhealthy. A negative inflation rate, for instance, would see prices generally dropping over time. A situation like that can actually end up with people slowing down their spending, because they expect costs to be lower if they wait. That makes sense for your personal wallet, but if enough people do it then businesses get into trouble and people can start losing their jobs. Generally, having a low but steady inflation rate is considered healthier for everyone, because it keeps the money flowing through the economy and helps everyone plan out their finances better.
As for what the Bank of England's got to do with this, they use something called the Bank Rate to influence inflation. Again, this can get a little complicated, but the basic idea is that the Bank Rate is the interest the Bank of England pays to banks and building societies that hold accounts with it. When the Bank Rate goes up, the interest those banks and building societies offer to the rest of us tends to go up too. This encourages people to save more and spend or borrow less (because the interest rates rise on loans as well as savings). In turn, this sucks money out of circulation and generally drags inflation down. Dropping the Bank Rate, on the other hand, encourages people to spend and borrow more instead of saving, which can push inflation rates higher.
Obviously, prices rocketing up are a worry for basically everyone. Almost 1 in 6 people who were asked in a survey said that they'd been leaning on credit cards more than usual just to get by while the inflation rate's been high. Over 1 in 5 say they've had to borrow more in a month than they had the year before. When the Bank of England raises its interest rate to try and control inflation, all of that everyday borrowing gets more expensive. The same goes for people paying off mortgages. Higher interest rates mean higher repayments. Close to half the people surveyed said they weren't going to be able to save any money at all in the upcoming 12 months because of skyrocketing prices. With energy costs ramping up by massive amounts, 2 in 5 said they were going to have serious problems paying their gas and electricity bills.
Looking at the biggest forces pushing prices up throughout 2022, some of the biggest factors are housing and utilities (water and energy), food and drink (non-alcoholic) and transport. Those costs alone are causing over 50% of the rise in the CPIH. For most of us, these are things we really can't afford to cut back on. In budgeting terms, that means a lot of those costs sit in the "essentials" category, which you'd normally want to put about half your household income toward. You can learn more about building a better budget in our article, "Tips to Beat the Rising Cost of Living", which also covers important tips on dealing with debts.
Guide: Beat The Cost of Living
Meanwhile, keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
It takes the following basic information to process most healthcare tax rebate claims:
You'll also need to set up a personal tax account. It's free and lets you keep tabs on all your key tax details. That includes all information from employers, banks and building societies and other government departments
When someone passes away, Inheritance Tax (IHT) comes into play, but there are thresholds and exemptions to consider. The standard IHT rate is 40%, applicable only if the estate's total value exceeds £325,000. However, certain conditions can reduce or eliminate IHT:
It's crucial to report any inheritance to HMRC, even if IHT doesn't apply. Typically, the estate itself covers IHT expenses, managed by the executor. However, additional taxes may arise from rental income if you inherit a rented property.
Find out the Inheritance tax hotspots and how high house prices hit even is passing to a child or grandchild.
Instalment credit is another system where you make fixed, regular repayments against the amount you’ve borrowed. Your bank or finance company sets the terms and lays out the kind of interest you’ll be racking up on what you owe. You’ll probably find yourself facing penalty charges if you don’t keep up the agreed repayments, but unlike a revolving credit deal you’ll have a clear plan in front of you for paying up. In fact, many people use instalment credit agreement as a way of ‘consolidating’ other debts into a single, simple repayment plan.
Insulation’s a really important thing to get right if you’re serious about bringing down your heating bills. Up to 40% of your home’s total heat loss goes straight through the walls, with another 25% through the roof. By comparison, windows and doors account for about 20% - and even your floors lose you 10%.
Of course, insulation’s not cheap, but it does pay off over time. It all depends on your situation. Internal solid wall insulation, for instance, can run you about £7,400 in an average semi-detached house. At a saving of £225 a year, you’re looking at over 30 years before it pays for itself. That said, fitting up to 270mm of loft insulation in a typical semi could only cost you £300, while saving you £150 a year in lost heat and cutting down your annual carbon output by 600kg. Even just insulating under your floorboards could save around £40 per year.
The point of all this is to realise that your home could well be leaking money unnecessarily. Those leaks could be from dodgy insulation, wasteful energy use or even just sticking with the wrong supplier. Either way, you can take control of it and start bringing your heating bills down. It doesn’t have to involve massive home renovations, either. Even just a few changes in your habits can help.
Keep safe and warm this winter – and keep checking back here for more tips and updates. Remember – you’re always better off with RIFT.
There’s another cost to consider when you’re looking into car mods. Making the right changes to your vehicle can make it more efficient and cheaper to run. It could even qualify you for cheaper insurance. However, a mod can also make your insurance provider a little nervous about the kind of driver you are—and you’ll feel the impact of those nerves in your wallet.
Always talk any mods through with your insurance provider before you buy them. The same goes for the DVLA. Since modding your car can alter the VED you have to pay.
We’re getting into territory where you’ll need more skills, time, and patience. You’ll also need your laptop for most of these intermediate level ideas:
Dropshipping is a reasonably new way of selling products online. It’s when you take orders from customers - through your website, for example - and another company fulfils that order. You’re not making the products yourself, or having to put in stock orders and then hold that stock until somebody buys it.
For example, say you want to dropship car accessories - like seat covers. Rather than put an order in for 1,000 seat covers and then have to find 1,000 customers to buy them, you can dropship them. You list the seat covers on a website you’ve set up. You take the order, and send it to the manufacturer, who sends the seat cover to your customer. You charge the customer £10. The manufacturer charges you £5 for the product and £1 for delivery. You pocket £4!
It’s not quite as easy as it sounds. The manufacturer will supply that same seat cover to other dropshippers - so you’ll need to find a way to stand out. So think about what you want to sell - and who to. Then get on the search engines - you’ll find plenty of manufacturers who dropship, as well as tips to stand out in your niche.
Etsy is aimed at crafty types - but you can sell all sorts. For example, you could pay a graphic designer to create a cool t-shirt design, then sell the t-shirts on Etsy for a profit. You don’t even need to invest in tonnes of stock. Once you have your design, you can use print-on-demand services. It’s a similar principle to dropshipping, but takes it one step further - the merchandise doesn’t physically exist until somebody orders it. So when somebody orders your t-shirt design, you send the order to the print house. They print it up and ship it to your customer, and you make a tidy profit. Keep your costs down by sticking to basic black or white t-shirts and you can easily make a £5 to £10 profit per t-shirt.
Sites like Upwork can be great places to pick up small jobs if you have skills like graphic design, or can write, for example. But there are also loads of simple jobs advertised - like collating spreadsheets - that don’t require pro-level skills.
Sites like Fiverr are a similar deal. You advertise your skills, people pay for them. It’s less professional than the likes of Upwork. While there are professionals selling their digital skills, there’s also quite a lot of…plain weird stuff up for grabs on Fiverr. Anything you could dream of asking somebody to do on camera, for example - there’s almost certainly somebody on Fiverr willing to do it for money. The point is, if there’s an odd digital skills niche you think you can fill, Fiverr could be the place for you. And while basic skills and products go for $5, hence the name, there’s no limit to what you can upsell people on. That’s how some users have apparently made six-figure sums through the platform.
Finding the best beginner investment fund can be a tricky business if you’re not a money expert. You’re setting out to make your cash work for you, and that’s generally a smart move. On the other hand, when you make an investment you’re taking a calculated risk with your money. You’ve got to go in with your eyes open, and you’ve got to learn to make good decisions. So let’s dig into this a bit.
The main thing you need to understand is that we’re not talking about dead-cert guarantees here. Any time you’re putting your money into stock or investment funds, the price can go down as well as up. You might feel like you’re dipping your toe in on a fairly safe bet, based on past performance. However, remember that last year’s experience doesn’t necessarily tell you much about next year’s prospects. A lot can happen in that time, and there are loads of unpredictable pressures that can push stock prices up or down.
Picking your first investment fund is about setting your financial “comfort zone”. We’ve already mentioned the level of risk you’re prepared to take. Beyond that, though, a big part of your decision is going to depend on how quickly you’re hoping to see some returns on your money. Smart investing really isn’t about getting rich fast and cashing out in a hurry. In fact, many advisers will warn you away from volatile investments that can rocket in a heartbeat, then plummet just as fast. Instead, the argument goes, the smart move is to look for a return over a longer term – say 5 years or more. It might not sound so exciting, but a longer-term investment will often help you ride out the kinds of short-term turbulence that can see you making a loss otherwise.
There’s a lot of good stuff to say about pensions. They’re great for minimising the tax you pay on your savings, and a simple, reliable system to build your retirement plans around. They also give you a lot of room to grow. You can get tax relief on up to £40,000 a year of contributions, or up 100% of your taxable earnings if that’s higher, with a tax-free lifetime limit of £1,073,100.
It’s already a great deal for most people, since it basically tops up your contributions by £20 for every £80 you pay in. If you pay higher rate tax, you can actually claim even more in a Self Assessment tax return. The very top earners making over £100,000 a year get an extra benefit on top, since they can use their pensions to stop themselves from getting a reduced tax-free Personal Allowance. If you’re making £100,000-£120,000 per year, you can find yourself paying out tax of up to 60%, so it’s important to make the most of opportunities like these.
So overall, pensions sound great, right? Well, for the most part, yes. They do come with some drawbacks and limitations, though. The big one is that you really can’t get at your money throughout most of your life. You need to be at least 55 before you can make a withdrawal from you pension pot at all – and that age is set to go up to 57 by 2028. If you’re looking to cash in your investment a little sooner than that, you’re better off examining your other options before going all-in on a pension scheme.
Individual Savings Accounts are another popular option that most people never really think of as “investments”. The idea of fixed rate ISAs is pretty simple. They’re tax-free savings accounts that lock your money away for a set period in exchange for a set interest rate. You know what you’re getting, and you know when you’re getting it, so they’re usually considered pretty safe.
With a Fixed Rate ISA, you’re probably going to score more interest than you’d be offered with an easy-access one where you can take your cash out more freely. They’re easy to manage, too. You open your ISA, with a set limit on how much you can dump into it, then earn monthly or yearly interest on it until the term ends and you get it back out. Generally, the longer you’re putting your savings away, the more you stand to get in interest. When rates are low all over, though, there’s probably not a huge difference.
Again, these sound like pretty safe, low-hassle investments, right? Again, the answer’s yes – with a few quick words of caution. Your interest rate’s locked in from the outset. That means if rates in general rise, you won’t see the benefit. You’re also at the mercy of inflation. When the rate of inflation’s high and the cost of living’s rising, even top-rate fixed ISAs will struggle to keep the value of your investment.
ISAs, then, can be great when interest rates are high and inflation’s low, but that’s not always the financial climate you’re looking at and it’s all too easy to see any growth getting swallowed up.
Now we’re getting into what most people think of when we talk about investing. Exchange Traded Funds are investments that track how a particular industry, commodity or other “index” is performing. It’s like holding a range of smaller investments in a basket with the risks and rewards spread out among them. ETFs are pretty easy to buy and sell whenever you want, just like normal stock. As a “marketable security”, an ETF has a given price attached to it and can be traded on a stock exchange.
ETF prices can obviously go up or down at any time, so the price you paid to buy in the morning could be different from the one you’d be charged in the afternoon. That’s one of the things that makes them different from other “mutual fund” baskets that can only be bought or sold at the end of the market’s day.
As well as keeping your overall risk level under control, ETFs make it cheaper to manage your investments. You’ll be paying less in commission to brokers than if you were buying each of your stocks one by one, for instance.
ETFs you can buy:
Like ETFs, index funds are a way of diversifying your investments so you don’t get badly stung by poor performance in any one area. The value of your investment is based on how a particular “market index” is doing. There are a few key differences between these and ETFs, though. The value of an index fund is only set at the end of the trading day, so they can only be bought or sold at that price. ETFs will often have a lower minimum “buy-in” – sometimes set even below the cost of a single share! Index funds, on the other hand, often expect you to lay down thousands of pounds to get involved.
ETFs also offer advantages in terms of tax when you sell them. When you decide to pull your cash out of an index fund, for instance, your fund manager has to sell securities to get your money. When you’re doing this to make a gain, the benefit gets passed along to everyone who’s invested in the same fund. This gets complicated, but the bottom line is that it can leave you owing Capital Gains Tax even though you haven’t actually sold any shares yourself. When you sell an ETF, on the other hand, you’re generally just swapping it for cash with another investor.
As for which is the better choice for you, there are a few things to weigh up. Obviously, comparing the “expense ratio” is a big part of that calculation, since the ongoing costs of keeping any investment is going to count against any growth you get from it. You’ve also got to think about commissions when you buy or sell – which will obviously matter more if you move your money around often and less if you don’t.
Money saving always starts with creating a budget. There is no other way. A budget tells you exactly how much money you have and how much you can afford to spend.
Weigh monthly expenses against income to calculate how much money you have left over after essential costs like mortgage payments, phone bills, and insurance.
From here, set a strict limit on how much you can spend on food and drink each month, and then give yourself a slice for luxuries and leisure expenses.
Always try to make sure that, after all of this, you still have a little to put away so that with each passing month, you’re a little better off.
Use our free budget planner to help you get started.
If money is short and you are forced to choose between one cost and another, always prioritise the most important expenses. Top of the list should be rent or mortgage payments. Missing these can lead to all sorts of unwanted problems, and perhaps even losing your home. So get it paid first.
If you have any loan or credit card payments to pay, these should be your next priority before moving on to food, child care, travel, and so on.
It’s always better to go without some of your favourite treats one month than fall further into debt or risk losing the roof over your head.
Energy providers, broadband companies, phone networks. They all want your business and once they’ve got you, they don’t want you to leave so they just keep their heads down, take your monthly payments, and hope you forget that you might be paying more than you need to.
Switching providers can be an effortless money saver and, thanks to the numerous specialist comparison and switching websites out there, the process has never been easier.
Make sure you know how much you’re spending on household energy. Pay attention to your bills or, better yet, get a smart metre to understand exactly where you’re using your energy. Most energy providers will supply a smart metre for free. If they don’t, why not switch? (see above)
From there, it’s a case of fitting energy-saving lightbulbs, turning electronics off at the wall, and washing clothes at a lower temperature. And don’t forget to make sure that radiators are only on in the rooms that you actually use.
Instead of saving money, why not make money by selling the things you don’t use? Forgotten clothes, old computers and phones, outgrown baby toys - they’re all worth money. Advertise them on one of the many auction or marketplace apps and earn yourself some easy cash at the same time as decluttering your home.
Sky-high petrol prices have been all over the news in recent months. Combine this with the negative impact motor vehicles have on the environment and perhaps it’s worth making 2023 the year that you leave the car at home whenever possible.
Public transport isn’t as affordable as it used to be, but interspersed with walking or cycling, it’s often cheaper than using the car.
As with normal ISAs, the junior ones come in two basic varieties: cash or stocks & shares. The difference with a stocks & shares ISA is that the money is invested in the stock market. Instead of paying out a pre-determined rate of interest, these accounts grow in value according to how well those investments are doing. If your kid’s young enough that they won’t be able to access the money in their junior ISA for 5 years or more, stocks & shares ISAs can be a strong choice. That’s about the length of time you’d expect to get a stable, consistent return on the investment, riding out any shorter-term turbulence in the stock markets.
Why would you pick this admittedly riskier route for your child’s savings? Well, for one thing you’re banking on getting better returns than with an ISA that pays a flat rate of interest. While they’re less predictable than cash ISAs, stocks & shares ones are often able to perform better over time. So, if you’re worried about inflation eating away at the value of your child’s savings, stocks & shares ISAs might be worth looking into.
You don’t need to be an investment expert to use a stocks & shares junior ISA. You can pick a ready-made one that basically chooses and manages the investments for you. There may be some platform or management fees for this, depending on your situation and ISA, but it does take a lot of the effort and hassle out. Instead of deciding on every investment separately, you choose an ISA with a pre-set “basket” of them. Your decision will be based on the level of risk you’re prepared to accept.
If you’re willing to put the work in, though, you can go for a self-invested ISA instead. With these accounts, you pick and choose your own investments more directly. Financial advisers often talk about the importance of “diversifying your portfolio” – which is basically just a technical way of saying don’t put all your eggs in one basket. Spreading your investments out over a wider range of businesses and markets is usually safer than putting all your savings in one place.
Whichever option you decide on, always remember that no investment in stocks & shares will ever be 100% safe. The value of this type of ISA can drop as well as climb, even with investments that tend to be low-risk. Make sure you go in with both eyes open, and never take risks with money you can’t afford to lose.
To learn more about investing in stocks and shares, take a look at our other article, “Best Beginner Investment Funds for 2022” - and keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Just like adults, children can have savings accounts opened in their names. The main difference with a children’s instant access account, naturally enough, is that the account holder needs to be under 18 years old. Most banks and building societies will offer some kind of specialised savings account for kids, and the instant access types mean money can be paid in and withdrawn whenever needed. The interest rates might still be pretty low compared to some other savings or investment options, but they can still outperform savings accounts designed for adults. As with any account that pays interest, though, you’re basically at the mercy of the inflation rate. If inflation is high and interest rates are low, every pound in a savings account will be losing real-world value over time.
Opening a savings account for a child can be a great way to start teaching them about handling their money safely. They can also help get kids used to dealing with bank accounts in general. Depending on the account, your child might get a passbook to use for withdrawals (you’ll probably have to be there when they do it, though), and letting them get some hands-on experience of controlling their personal money is a great first step toward teaching them some financial responsibility.
With a regular saver account, you’re going to start seeing a few extra rules about how your child’s money is handled. For one thing, there are probably going to be limits on how much, or how little, can be paid in each month. The account might have to be topped up by between £10 and £100 per month, for instance. The point is to encourage the account holder to develop some regular saving habits, but those restrictions can come with some benefits attached. You’ll tend to find they pay out higher rates of interest, for example. That’s definitely a plus, but it’s worth keeping in mind that they might be a bit restrictive if you were planning to save more than the limits allow. Also, most accounts of this type only last for a set amount of time, often 12 months. During that time, you won’t be able to withdraw any of the cash you’re setting aside.
Junior ISAs are another savings option that a parent or guardian can set up for someone under 18 years old. There’s a limit set on how much money you can sock away in one of these each year, which comes to £9,000 as of 2020/21. Once the cash is in there, though, it’s going to stay there for a while. The child won’t have access to it at all until they turn 18, at which point the account loses the “junior” part of its name and becomes a normal ISA. The child can still take control of the account before this, though, potentially making some important decisions about it from the age of 16. They still won’t be able to take the money out until they’re 18, though.
Since these accounts have the same basic set-up and rules as any other ISA, all the interest paid out (or any investment growth in the case of stocks & shares ISAs) comes free of tax. Great as this is, it’s still worth remembering that a cash ISA paying interest might not keep up with the rate of inflation. That means the value of your child’s savings could still be dropping in real terms. Even so, this can still be a good option for saving toward your kids’ futures without burning through your own ISA pay-in allowance of £20,000. You can also use payments into a junior ISA to help bring down Inheritance Tax charges.
Obviously, there are more costs involved in moving out than just your new rent or mortgage payments. Before you fling yourself out into your new independent life, be sure to factor in the major monthly expenses you really can’t do without, like utility bills. Generally speaking, it’s a smart move to add about 30% on top of your basic rent just to cover those, but a lot depends on things like energy prices.
Extra costs that can trip people up:
If you’re paid for any of your jobs through the PAYE system, then that job will have a tax code attached to it. This lets HMRC know some important things like which job your Personal Allowance is linked to.
When you tell HMRC you have another PAYE job, you’ll get a New Starter Checklist to fill out. You’ll get this from your new employer. Pay attention to your tax code paperwork. Being on the wrong code can seriously affect the amount of tax you’re paying, and it’s down to you to get any mistakes sorted out—even if they weren’t yours! Getting caught on the wrong tax code can leave you with fines, pumped up tax bills and interest to pay.
If your main PAYE job pays more than the Personal Allowance you qualify for, you’ll get a tax code of 1257L for it (as of 2024/25). All this code means is that you've got a personal allowance of £12,570 and won't start paying tax on anything you earn below that. The letter at the end of this particular tax code confirms that no special circumstances apply for this job. Your second job will get a BR, D0 or D1 code instead, depending on which tax band your combined income falls into.
If you’re making a combined total of over £190 a week, you’ll also be paying National Insurance on your income from both jobs. Keep this in mind, since it’s important to remember that there’s more than Income Tax to factor into your tax budgeting.
Okay, but what if both of your jobs pay less than the Personal Allowance you're entitled to? Well, in that case you need to get things sorted out fast before they cost you money. Let's imagine your main job in 2024/25 pays you £12,570 and your side-gig pays £8,000. Applying your Personal Allowance to the main one means you're losing the benefit of £570 of it. If things go really wrong and your allowance gets slapped onto your second job, you're missing out on a whopping £4,000 of it! When this kind of thing happens, you need to get in touch with HMRC as quickly as possible. They've got a system for splitting your Personal Allowance between your jobs so that you don't end up paying too much tax overall.
It's worth pointing out that splitting your Personal Allowance might not be the best idea if the income from your PAYE jobs isn't predictable. If one of your gigs suddenly takes off and pays a lot more than expected, you might end up with the taxman sniffing around your circumstances because you've underpaid.
Let's say you've got a main job paying £35,000 a year and another one paying £20,000. Not too shabby overall, you think. However, if you don't square things with HMRC you might be looking at some trouble when they catch up to you. In total, you're making enough for some of your income to be taxed at the higher rate. Despite that, since your earnings for each job are below that threshold individually, you're only being taxed at the basic rate on each (after your Personal Allowance, of course). Again, you have to talk to HMRC to get this sorted out and prevent some tense situations with the taxman.
This is an easy one. LED bulbs are more energy efficient than standard ones, and can last for decades with careful use. More to the point, they can save you £7 a year off your electricity bill per bulb! That saving alone knocked one man’s lighting bill down by 90%.
You know what else? LED bulbs are actually quite cool, too. Depending on the kind you buy and how your home’s set up, you can get dimming features for romantic evenings and movie nights or programmable “wake up” and “sunset” features to ease you in and out of bed each day. You can even get colour-shifting bulbs that you control with your phone. Basically, if you haven’t already swapped out every light bulb in your home for an energy-saving LED one, you’re falling behind the times.
Mortgage life insurance is a system designed to help your dependents cope with the costs of your remaining mortgage payments if you die. The last thing you’ll want is to leave your family without enough insurance cover to clear the amount left on your mortgage, so make sure it all adds up. Getting the maths right is important here. A decreasing term life insurance policy, for instance, will pay out less each year. To get the balance right, make sure the coverage is enough to handle the entire mortgage from the start, then arrange the length of the policy so it keeps pace with the amount you’re paying off in mortgage repayments each year.
If you qualify for a Lifetime Individual Savings Account (LISA), you could do worse than looking into getting one. The first thing to know about them is that their value can vary pretty widely according to how old you are when you take one out. At their best, they can actually make for a pretty decent retirement booster. You can open one from the age of 18, giving you a good, long run-up to make the most of it. If you’re over 39, on the other hand, you’re out of luck and need to look elsewhere. Watch out, though: even if you’re eligible to open a LISA, the interest rates aren’t high enough that you can afford to use one instead of a pension.
So, what are LISAs actually good for? One of the best answers is buying your first home. Here’s how the system works. You can pump up your LISA by as much as £4,000 a year, whether as an annual lump or by trickling the cash in whenever you can, until you hit the ripe old age of 50. As you save, the government will be topping your cash up by 25%, to a maximum of £1,000 a year. If you’re a first-time buyer, you can use your LISA cash toward your deposit - assuming the place you’re buying is worth no more than £450,000 and you’ve had your LISA open for 12 months.
If you’re not buying your first home and you’re under 60 years old, there’s a catch! Pulling cash out of your LISA will cost you 25%, basically clawing back all the bonus money the government gave you. They’ll ignore that rule if you’ve got under 12 months to live, though. If you die with cash still in your LISA, it’ll become part of your estate. Your beneficiaries won’t get charged the 25% penalty, but the account won’t be considered an ISA anymore so it’ll count toward the threshold for Inheritance Tax.
Basically, this can be a terrific option if you’re young and saving , either for your first home or to boost your retirement income alongside a pension. If that doesn’t sound like you, though, there’s a good chance you’d be better off looking elsewhere.
Let's deal with the obvious one first: it's possible to have two jobs without even realising it. A second job is can be classed as anything you make money from in addition to your primary role. This can be anything from:
If you're making over £1,000 a year, HMRC's going to want to hear about the money coming in. Depending on your set-up and situation, you might well owe some extra tax on that cash.
This will generally mean signing up for the Self Assessment system and filing yearly tax returns to report your income and expenses. You'll have strict deadlines to hit, whether or not you end up owing any tax - and there are some pretty nasty penalties in store if you mess things up and don't file or pay in time.
One thing that particularly muddles things up for people new to Self Assessment is that (unlike PAYE) you're paying the tax you owe for self-employment after you've earned it – at least mostly. When you file your yearly tax return, you get a bill for what you owe and a deadline to pay up (the 31st of January). However, HMRC will use the figures in your tax return to estimate the tax you'll owe the next year as well, and make you pay two “payments on account” against it. They basically divide your expected upcoming tax bill in half and make you pay a chunk of it by the 31st of July, then the rest by the following 31st of January. It's actually supposed to make things easier for you, believe it or not, since paying ahead of time in instalments is a little less of a shock to your wallet than coughing up potentially many thousands of pounds at once. Even so, it's one of those tricky little areas of the tax rules that can cause serious headaches if you don't keep your wits about you.
Look – we’re not your dad. We’re not going to lecture you on all the reasons you ought to stop flooding your lungs with deadly tobacco smoke all day. Those reasons are right there on the packs for you, often in graphic detail – and one of the main ones to read closely is the price!
It costs more to be a smoker practically every year, since it’s one of the few taxes every government feels good about raising. Taking the figures as of March 2022, it costs a shocking £2,000 a year to finance a 10-a-day smoking habit in the UK. That’s enough in itself to fund a proper dream holiday!
While it’s definitely possible to make healthy choices at a restaurant, there really aren’t too many of us who’d consider nibbling carrot sticks at an overpriced salad bar a proper treat when eating out. It’s certainly true that a fair few restaurants offer less indulgent choices – or at least let you know on the menu what kind of damage you’ll do to your diet by eating them – but having a meal out really does tend to tempt us toward less virtuous food options.
When you look at it from a financial angle, restaurant food gets even worse. Even healthy foods can be surprisingly expensive when you’re paying someone else to prepare them for you. Whatever you pick from the menu, you’re probably looking at anywhere between £15 and £100 a head – especially if there’s alcohol involved. All told, cooking a healthy, inexpensive meal at home is better for both your wallet and your waistline. You’ll almost certainly take on fewer calories, and you won’t end up choking on an overstuffed bill (including tip).
There are some definite health benefits – both physical and mental – to spending time relaxing with friends and family. After a tough work week, a weekend “decompression session” with your mates can be exactly what you need to blow off some stress and prepare to dive back in on Monday. The trouble is, most of us tend to think of socialising as being the same as drinking. Again, we’re not here to tell you to stick solely to joyless diet soft drinks when you’re out with friends, but it’s absolutely true that pumping too much alcohol into your body does short and long-term damage to your health and wealth.
A pint in a typical British pub will run you about £4.07 at the time this guide was written. We’re just talking about averages here, obviously. You could easily find your round costing over £6 a head, depending on where and what you’re drinking. Knocking a few back with your mates 4 times in a month can stack up to around £100 – a number that drops way down the moment you move over to non-alcoholic options.
If there’s one place where making healthier choices can really save you regular money, it’s in the supermarket aisles. When you fill your basket with pre-packaged and heavily processed foods, you’re paying for a lot of stuff that won’t ever end up on your plate – and even more that you’ll wish hadn’t. Expensive packaging, colourings and additives may make the produce look more appealing, but they do nothing for your health and can leave your wallet looking distinctly malnourished. Switching to healthier whole foods, on the other hand, will leave you with a better quality diet, a brighter long-term health outlook and more cash in your pocket.
Yes, absolutely – making healthier food and fitness choices is about taking care of yourself in preparation for a longer, fuller life. Beyond that, though, there’s the ever-nagging question of how good we look to other people – and we’re not just talking about whether we dare cram our sausage roll-sculpted physiques into a set of Speedos this summer.
When you go looking for important financial deals on things like life insurance, for instance, you’re asking a company to make judgements about what kind of risk you are. After all, an insurer is basically making a bet on how long you’re likely to stick around handing over premiums before they have to pay out on your policy. The worse your health choices look to them, the more they’re going to make you pay for your life cover. On the other hand, if you go in as a non-smoker with clean health and great fitness habits, you’ll almost certainly be looking at a much better deal.
The same thing goes for private medical cover. You’re going to look like a much safer bet to a medical insurer if your body’s a well maintained, high-performance machine than if it’s a clapped-out old banger. Those health choices matter, and the better they are the lower the cost of your medical insurance. Even if you don’t have private cover, keeping yourself as healthy as possible throughout your whole life will still save you money on prescription fees and trips to your GP.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Not all tenancy agreements are the same, so it's essential to know exactly what you and your mates are signing up for. Here are some of the basic rental types:
A joint tenancy is an agreement that applies to every person you're sharing the property with. Everybody signs it up-front and it gives the same basic rights to each of them. Of course, in the real world, you'll most likely have some personal 'rules' to set up between you as well. You probably won't want every housemate having equal possession of any one bedroom, for instance. From a legal standpoint, though, you share the property and its facilities and have joint responsibility for paying the rent you've agreed to. Every tenant also has to keep to the terms and conditions listed in the agreement, which is usually referred to as 'joint and several liability'. As far as the law's concerned, you're basically all lumped together as a single tenant.
In a sole tenancy agreement, things are a little different. Instead of every person living at the property having joint possession of its space and facilities, you each get a separate agreement of your own to sign. If you handle your tenancy this way, it means that not everyone has the same rights over everything. So, for instance, each of you can have an exclusive right to use a specific bedroom. Meanwhile, the agreements will spell out shared areas like bathrooms or a kitchen, so that everyone can make use of them.
On the other end of the scale, we have sub-letting agreements. With these kinds of tenancies, only one of you actually has to sign the main contract, making you the 'sole tenant' of the property. However, you may then have the right to sub-let areas of the property to other people, who can sign up either as lodgers or sub-tenants. When it comes to paying the rent, it's the sole tenant who has to do the honours. As far as your landlord's concerned, their only agreement is with you, so you're the one they'll chase for the money. Of course, that doesn't automatically let your housemates off the hook. When they sign up as sub-tenants or lodgers to rent a room in the property, you'll make legally binding agreements with them to pay their share. While there are definite advantages to sorting out your rental agreement this way, there are some obvious pitfalls, too. If you're the sole tenant, for example, you'll quickly find yourself facing legal troubles, or even outright eviction, if you don't keep up the payments. Of course, since the sole tenant is, technically speaking, a landlord themselves from the moment they sub-let a room or take on a lodger, your housemates will have the same responsibility to pay rent to you.
Using these figures, you’d still need a £25,000 deposit for a 95% mortgage in London. In the North East, this would be £7,250. As you can see, location plays a huge part in a property’s price. If you work from home, you might be less bothered about location. If you need to commute it might be a major factor for you. Finding the right balance between price and location might help you reach a more achievable deposit.
There are other ways to own a house outright if the location is absolutely essential to you - such as Shared Ownership schemes. These let you buy between 10 and 75% of a property, paying rent on the rest. As you’re only paying for part of the property, your deposit is likely to be much lower depending on what percentage you buy.
You can buy back shares of the property until you own the whole thing in something called ‘staircasing’. Although shared ownership might be a cheaper option in the short term, it’s vital that you can afford to pay both your mortgage and rent at the same time. If you don’t, you could end up being evicted and losing your share of the house without receiving any money back.
HMRC don't hand out replacements for lost P45 forms, but your previous employer might be able to give you a copy. They can usually only do this if they use digital P45s, so if yours was on paper then they won't be able to print you another copy.
If you can't get a replacement for a lost P45 and start a new job in the same tax year without one, your employer can give you a starter checklist to fill in instead.
Learning how to budget isn’t nearly as tough as it sounds. It all starts with taking a close look at your regular earnings, and what you’re doing with them. There are 2 basic mistakes to avoid right from the start, though. The first is not understanding your costs, meaning you haven’t properly divided your spending up into things you can control and things you can’t. The second is forgetting to factor some regular saving into your budget.
Let’s start by looking at your costs. The main thing here is to draw a clear line between your essential spending and everything else. Go through your receipts and bank statements and add up everything you’re spending each month on necessities like rent, mortgage repayments, Council Tax and food. These are payments you really can’t afford to skip (although you should definitely check out our guide to Council Tax Debt to make sure you’re not being overcharged). Once those absolute essentials are taken care of, whatever’s left of your monthly income is “disposable”. With that information under your belt, you’re ready to start working out a budget.
The key to budgeting is setting up a plan you can stuck with month on month. One of the best and simplest systems is the “50/30/20” rule, which we’ve talked about in a few of our guides. See our article on fixed income saving strategies for full details, but the short version is that you rank your regular costs as Needs (50% of your income goes toward these), Wants (30%) and savings (20%). By setting yourself a simple budget like this, you’ll quickly get used to the idea of saving consistently. It’s a great financial habit to build whatever your income, and it’s worth its weight in gold if you’re saving toward a specific goal.
Let’s say you’ve got £600 of disposable income each month and want to save. You’ve already taken the hardest step by working out how much money you’re playing with. Setting aside £200 of that on a regular basis will still leave you with £100 a week of “fun funds” to splash on non-essentials. After a year, you’ll have £2,400 stashed away in your savings. Congratulations!
Once you’re comfortable working with a budget, you can start tweaking it to get even more organised. For instance, you could break down your spending even more. For example, setting limits on things like eating out, trips to the cinema and other entertainment costs could leave you with even more spare cash at the end of the month. Lump the extra in with your savings and you’ll hit your goals even faster. Doing this can also help you make up for any months when you weren’t able to save as much as you wanted. Upping your month-by-month saving by even a little can help replace the missed amount over time, which is a lot easier than trying to do it all at once.
There’s a pretty impressive range of mobile apps designed to help you save. We often talk about how important it is to make saving a habit, but some of this software’s designed to make the whole process completely automatic. For instance, apps like Monzo, Plum, Moneybox and even NatWest have a feature called “round-up saving” which actually lets you save cash even while you’re spending it. Basically, every time you pay for something, the app will round up the price to the nearest pound and slot the change into a savings account. You’ll never notice the difference while you’re actually shopping, and your savings will quietly mount up in the background. This can be a real boost to your finances over time, particularly if you’re saving toward something specific like a holiday.
The cost of everyday groceries might be rising, but a few smart choices can still keep the costs down. A survey from Which? in January 2022 checked out a basket of 23 basic essentials, both big brands and store-owned, and compared the overall cost across a range of supermarkets. Overall, Lidl worked out the best at £24.78. Up at the other end of the scale, though, we find Waitrose, where that same basket of groceries would run you £33.94. Assuming that the supermarkets all keep their prices in the same proportions, you could save up to £476.32 a year just by switching from the most expensive shop to the least.
Saving cash isn’t a sprint. It’s a marathon where the key to victory is setting a pace you can keep up consistently. It’s about making small changes that mount up over time, rather than relying on occasional one-off windfalls to bulk up your savings. Just bringing in coffee from your kitchen to work instead of blowing £3 a day in a cafe each day could save you £60 or more a month. It takes virtually no effort to do, but has a real impact over a year. For more simple, everyday changes you can make to save real cash, see our guide, “How to Save Money on Day-to-Day Expenses”.
We’ve been living in an age when more and more businesses are trying to hook us into subscription services. From the music we listen to and the films we watch right up to food delivery services, we’re stacking subscriptions on top of subscriptions with no end in sight. How much actual value are we getting, though? Those rolling monthly payments keep on draining cash out of our bank accounts whether we’re using them or not, and ditching even one of them could easily save you over £100 a year. If you find you can’t live without it, you can always sign back up whenever you want to. In the meantime, you’ll still have save some money.
If you’re struggling with your finances, there’s a range of benefits that you might not even realise you qualify for. Depending on your situation, you might be able to claim some help from the government. The first step is to check out the benefits calculator on the gov.uk website. If you’re eligible for anything, you should be able to find out there.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Knowing what kind of financial ride you’re in for is absolutely critical when you’re about to make any kind of major money decision. With weddings, there are lots of creeping costs that can blow through your budget if you don’t lock them down early. So, before you start making any big plans about venues and vendors for your wedding, set yourself a hard limit of what you’re able to spend. Sticking to that limit might be a challenge when you start looking at all the romantic little “extras” on offer, but it’s the key to keeping your spending under control.
Wedding planning experts Hitched ran a survey back in 2021 to find out what the typical cost of a wedding in the UK stacked up to. Their results showed that couples were spending an astonishing average of £17,300 on getting married. That’s not even the end of it, either. That figure only covers the costs of the wedding day itself. Engagement rings aren’t included, for instance. Those alone can cost anything from £1,000-£1,700 each on average, with the amount people are prepared to splash out varying around the country. A typical honeymoon can easily add a whopping £4,500 to that total – although many actually cost significantly more.
The most important thing to do is set a budget that’s realistic, and then stick to it. Don’t get caught up in what the television says your wedding ought to be. This is an intensely personal decision and it needs to be treated with respect. It’s absolutely possible to blow through hundreds of thousands of pounds on a really lavish wedding with loads of guests in a high-end venue. If you can afford that and enjoy the idea of it, then we’re not going to try and stop you. If you’re more interested in being married than getting married, though, then a register office can sort you out for as little as £57.
Okay, you’ve set the limits of your budget and managed your expectations about what you can realistically get for that amount of cash. Now you’ve got to start saving up. Obviously, the length of time this is going to take, and the amount of struggle you’ll have getting there, completely depend on your financial situation and saving goals. On average, though, the smart move is to start saving and planning about 20 months before the big day.
It’s also wise to set up a separate savings account for your wedding fund. The idea is to keep that money “ring fenced” so it doesn’t get eaten into by your everyday costs or unexpected bills. Consistency is the key here. It’s almost always better to save a little bit of money reliably every month than to throw in the odd chunk of cash every so often.
Need some help setting your basic goals and timelines? Use our free to work out how long it’ll take to reach your saving goals. You can also check out our other guides for more advice on how to save. Whether you’re buying a new home or a used car, RIFT has you covered.
We’ve also got a to help you separate out the everyday costs you can’t control from the ones you can bring down. It’s based on the 50/30/20 system, which you can read about in some of our budgeting guides.
Essentially, it just comes down to working out exactly how much money you can count on coming in each month. With that total firmly in mind, you can start to plan your spending. 50% of your income goes toward essential costs like mortgage repayments or rent, 30% of it counts as your “fun funding” and the remaining 20% is saved or invested. It’s all about taking tighter control of your finances and learning where you can reduce unnecessary costs. Whatever large expenses you’re saving toward, it all starts with a solid, realistic plan. Once that’s in place, the rest is up to you!
For most happy couples planning their big day, the wedding venue’s going to be the biggest singe expense they have to deal with. Strange as it sounds, there’s a UK law that limits the types of building that you can use to get married in. Your chosen venue needs to be either a registered religious building like a church or other types of premises that are approved for the purpose by the local authority. Because of this rule, it can be tricky to control the overall cost of your wedding venue. On average, you’re probably looking at a little over £5,000 to book a typical UK venue – but obviously there’s a huge difference between the most expensive places and the cheapest. It might have been love at first sight, but it’s still worth checking out the competition when it comes to booking a wedding venue. A little legwork up-front could see you grabbing a much better package elsewhere.
If you’ve got your heart set on a specific place, does that mean you’re automatically out of luck if the cost doesn’t fit your budget? Not necessarily. The price you’ll be charged can vary with the level of demand the venue’s dealing with at any given time. If the place you want to use is a little too pricey on the date you’ve picked, shifting to a mid-week time slot could bring it down a little. The same goes for the time of year you choose for the event. Booking in the summer, for instance, will often be a lot more expensive than the cooler months. Picking a date outside of high-demand periods could actually mean the difference between landing the wedding venue of your dreams and settling for second-best.
After the venue itself, your wedding’s food and catering bills likely to be the next biggest cost to tackle. With prices on the rise all over, an average wedding currently runs about £65 per person for food and drink. If you’ve got a fair-sized family or a bunch of friends and well-wishers to feed, this bill can stack up really fast.
You’ve got a range of options to look into for wedding food. At the top end of the scale, you could go for the fully catered option. A lot of people feel this approach really makes the day feel special. On the other hand, it can also whack thousands onto the cost of your big day. £4,000 is a reasonable estimate of what to expect from a fully catered wedding – and that’s before you even add the cake!
If that sounds like a little too much to choke down, you could find yourself coughing up a lot less by opting for a buffet-style spread instead. This can actually work out better for your guests as well as your budget, since people will have more choice over what they eat and drink (which can be important if people have specific allergies or preferences to consider). If you’re dead-set on catered sit-down dining for your wedding guests, your chosen venue might have an all-in package deal that’s worth considering. It’ll often work out a fair bit cheaper than bringing in an outside catering company.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
The Marriage Allowance scheme is pretty simple:
| Tax Free Personal Allowance | Transferable Amount |
| Earning less than £12,570 (2021/22 tax year) | £1,260 |
That counts for civil partnerships as well as marriages. As long as your partner isn’t earning more than the upper threshold for Basic Rate tax of £50,270, you can qualify.
| Amount you won't get taxed per year | Combined saving per year |
| £1,260 | £252 |
That’s assuming you had £1,260 of unused Personal allowance to transfer, of course. If not, claiming Marriage Allowance might suddenly see you paying some tax you weren’t before – although it could still work out better overall. The tax thresholds and Personal Allowance obviously change over time, but you can still claim back your tax for the last 4 years. The idea of Marriage Allowance is to make sure people get the full benefit of their Personal Allowance, even if they can’t use all of it themselves. Pensioners can apply, too - as can people living abroad, as long as they've got a Personal Allowance to transfer. Remember that you don't even need to have an income to have a Personal Allowance - so don't think you'll be left out because you aren't earning. Your partner will get a new tax code, while yours will sprout an N at the end of it. Those changes are nothing to worry about and we have everything you need to know on our tax codes explained pages.
If you’ve already chosen RIFT to tackle HMRC for you, then you won’t have to lift a finger or pay a penny to claim your Marriage Allowance. We’ll do it automatically when we handle your tax refunds or returns, with no extra charge!
If you’re going it alone, you can get it all done online at the government website, as long as you’ve got both of your National Insurance numbers handy. Some proof of your identities will also be needed, as usual when you’re dealing with HMRC.
Marriage Allowance is a great way to lighten your financial load a little each year, and it shouldn’t be a real strain to claim it. When it comes to the heavy lifting of Self Assessment and tax refunds, though, that’s where the real experts get to work. Specialist help from RIFT means more money in your pocket and no hassles from HMRC. Get in touch with all your tax questions, problems and concerns, and let us show you why you’re always better off with RIFT.
Yes, both you and your spouse will have your tax codes changed when you claim Marriage Allowance. The partner who’s giving part of their Personal Allowance to the other will now have an N code. The one who’s receiving it will get an M code.
No. In order to claim Marriage Allowance, the partner receiving the extra portion of Personal Allowance must only be paying Income Tax at the basic rate, while the one transferring it must be earning less than their own Personal Allowance.
If your income while on Maternity Leave is below your Personal Allowance, and your partner pays tax at the basic rate, then you can claim Marriage Allowance to transfer some of your unused Personal Allowance to them.
When you're claiming tax relief for food, you need to keep hold of things like receipts and order tickets as evidence of what you’ve spent. If you're paying by card, keep the slip that comes out of the machine. You can also get this information from bank statements but that will be much harder work.
If you take cash out of a machine to pay then take a quick photo of the withdrawal receipt. However, as with your bank statement this will only show what you took out, not what you spent so get a photo of the till total or anything else that shows the actual price you paid.
It’s a good idea to take a photo the price board or menu as extra evidence of your claim. If the menu doesn’t change you don’t have to take the same picture everyday – just one to show the prices is fine.
Here are some examples that customers have taken in the past. You don't need to take an award winning photo, just a quick snap of the prices like this will do.
You won’t need us to send all the records for us to do your claim but we need to know that you have evidence of your spending in case HMRC do ask for it and to make sure you're protected by our RIFT Guarantee.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
You don’t need to keep lots of paper. Store any photos, screenshots or scans somewhere you can easily find them on your computer. For now, just hold onto them. We may need to ask you for these at a later date to support your claim.
It's a good idea to take a photo of the menu board or price list where you bought your food. If it doesn’t change, you don’t have to take the same picture everyday – just one to show the prices like these ones taken at real works canteens.
If you order your food online then save the confirmation email.
You probably won't need them all to back up your tax refund claim but we need to know that you have the evidence if the tax man does ask for it.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
It's tricky to claim tax relief if you don't have proof of what you've spent. We may still be able to include your food costs in your refund claim if you’re working on a site where we have details of standard costs for.
Just remember to start keeping your records from now on to make things easier next year.
Use our tax calculator to find out if you're due a refund.
Yes. If you are staying overnight for work and your employer does not refund the money you spent on meals then you can claim tax relief in the same way as you can with other work related expenses.
Again, it’s important that you’re honest. Don’t claim to have eaten a 3 course meal in the hotel restaurant if you popped out to the local takeaway.
Don't forget to claim for the cost of food purchased during travelling to your temporary workplace. Whether you buy your food from the buffet trolley, the service station or at a shop or takeaway en route remember to keep the evidence so that we can claim the tax relief for you.
If you can't get a receipt for your food, even a photo of the price board can be helpful in proving what you've spent. Just take a quick snap with your phone and keep it safe. The taxman's not trying to trip you up or cheat you out of money. All he's after is evidence to back up your claim, so he's sure you're paying the right amount of tax.
You won’t need to send us all the photos for your claim. We just need to know you have them in case HMRC do ask for some evidence of your costs to make sure you're covered by the RIFT Guarantee.
Sometimes but if the subsistence allowance completely covers the cost of your food while you’re away from home for overnight stays then you can’t claim anything else.
If the amount does not cover all your expenses for food then you will be able to claim the difference.
If you’ve made your lunch at home, then you can’t claim the costs. This is because the groceries are part of your personal shopping bill, not work related expenses.
It's often strange little details like this that easily trip people up. That's why we're here to help make sure you get the best refund possible and always stay on the right side of HMRC's rules.
Use our Tax Calculator to find out if you can claim.
If you’re self-employed, freelance, contracting or working CIS in construction, this will be handled under your expenses in your self-assessment tax return in the normal way.
The same principles apply though, you will need to be able to provide evidence of what you’ve spent in order to claim them as costs. Keep your meal receipts in the same way as you keep all your other records needed for your tax return.
You can still claim even if your canteen is subsidised - but only for the subsidised amount that you paid.
Make sure to keep a record of what you spend so that we can work out the total at the end of the year.
If you didn’t get a receipt or meal ticket then just take a photo of the menu board or price list where you bought your food. If it doesn’t change, you don’t have to take the same picture everyday – just one to show the prices is fine.
Many people assume it’s not worth the hassle of keeping records of what you spend on meals because the refund you get back won’t be worth it.
Shockingly it turns out that you're probably looking at about a staggering £90,000 spent on food over your working life – that’s enough to pay off an average mortgage 6 years early!
The cost of food varies a lot up and down the country, and depends on things like whether you have a subsidised canteen at work. Still, the average daily spend of a person at work is £5 - £10. This means you should be getting £250 - £480 more back from HMRC in your refund every year.
If you don’t claim you’re missing out, on average, around £12-25k over the course of your working life – and that’s a considerable amount of money for taking a few photos of what you had for lunch.
Let's have a look at some examples:
Bill, is a builder working on a construction site in London.
Were you keeping track? Bill’s spent £9.94 already – and he’s probably a bit dehydrated at that!
All pretty simple so far, right? Only, Bill had to trek down from his home in Scotland for this job and travel home at weekends. He claims his tax refunds for the food he buys during his work day, but he's still missing out badly.
This means he spends £22.25 on food during his travels to work.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
Use our Tax Refund Calculator to find out what you could claim.
If you’re travelling to a temporary workplace then you can claim the costs for food purchased during this time.
This might be when you are travelling during the working day to temporary workplaces or it might be if you have to travel a long distance to get to a temporary site that you’re staying over at.
Whether you buy your food from the buffet trolley, the service station or at a shop or takeaway en route remember to keep the evidence so that we can claim the tax relief for you.
Find out what you could claim with our Tax Calculator.
If you’re part of the Hungry Soldier scheme then you sign for your meals and the cost is taken directly out of your salary in arrears. You will need to keep a record of how much this adds up to each month and let us know what you spent.
The amount taken out should be shown on your payslip. You’ll need to give us copies of your payslips for your travel refund anyway, so you should be keeping those.
Use our Tax Refund Calculator to find out how much you could claim.
When you're claiming tax relief for food, you need to keep hold of things like receipts and order tickets as evidence of what you’ve spent. If you're paying by card, keep the slip that comes out of the machine. You can also get this information from bank statements but that will be much harder work.
If you take cash out of a machine to pay then take a quick photo of the withdrawal receipt. However, as with your bank statement this will only show what you took out, not what you spent so get a photo of the till total or anything else that shows the actual price you paid.
It’s also a good idea to take a photo of the price board or menu as extra evidence of your claim. If the menu doesn’t change you don’t have to take the same picture everyday – just one to show the prices is fine.
If you haven’t been good at keeping receipts to date, start keeping them from now on to make claiming easier next year. You wouldn’t throw away a £5 note, so don’t throw away your receipts as that’s what they could be worth to you.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
Use our Tax Refund calculator to find out how much you can claim.
You don’t need to keep lots of paper. You can take photos or scans of them and save them somewhere you can easily find them on your computer.
For now, just hold onto them. We may need to ask you for them at a later date to support your claim.
You may not need to send them to us for your tax refund claim but we need to know that you have the evidence to hand if HMRC does ask for it so that you're protected by the RIFT Guarantee.
This depends on quite a few factors about your personal situation, so it’s best to speak to us directly and we’ll talk it through with you and let you know what to do.
You can claim for your meals bought in the Cookhouse or Mess during working hours though.
Read more about tax refunds for the Armed Forces.
This depends on whether your permanent residence is elsewhere. If you’re not sure and want to talk it through with us then give us a call and we’ll let you know how the rules apply to your situation.
If it is then you can claim tax relief against the costs of any takeaways or meals out you have to buy.
If you ordered online keep a copy of the email confirmation or save a screenshot.
If you went to the takeaway, then take a photo of your receipt or the menu board.
Use our Tax Calculator and find out if you're due a refund.
If you’re in Substitute Living Single Accommodation (SSA), you’ll get an additional allowance given to purchase food as you won’t be entitled to use the Cookhouse. You get this as a supplement in your pay so you can only claim if your expenses exceed the amount of the allowance.
Find out more about tax refunds for members of the Armed Forces.
Food that you don't personally pay for can't be claimed against for tax relief. For example, if you're at sea in the Royal Navy, your meals are provided for you and don't count toward you tax refund.
You should keep track of any meals you have to buy onshore or off-base, though, as those can often count.
Read more about tax refunds for the Armed Forces.
If you’re part of the Hungry Soldier scheme then you sign for your meals and the cost is taken directly out of your salary in arrears. You will need to keep a record of how much this adds up to each month and let us know what you spent.
The amount taken out should be shown on your payslip. You’ll need to give us copies of your payslips for your travel refund anyway, so you should be keeping those.
Use our Tax Refund Calculator to find out how much you could claim.
When you're claiming tax relief for food, you need to keep hold of things like receipts and order tickets as evidence of what you’ve spent. If you're paying by card, keep the slip that comes out of the machine. You can also get this information from bank statements but that will be much harder work.
If you take cash out of a machine to pay then take a quick photo of the withdrawal receipt. However, as with your bank statement this will only show what you took out, not what you spent so get a photo of the till total or anything else that shows the actual price you paid.
It’s also a good idea to take a photo of the price board or menu as extra evidence of your claim. If the menu doesn’t change you don’t have to take the same picture everyday – just one to show the prices is fine.
If you haven’t been good at keeping receipts to date, start keeping them from now on to make claiming easier next year. You wouldn’t throw away a £5 note, so don’t throw away your receipts as that’s what they could be worth to you.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
Use our Tax Refund calculator to find out how much you can claim.
You don’t need to keep lots of paper. You can take photos or scans of them and save them somewhere you can easily find them on your computer.
For now, just hold onto them. We may need to ask you for them at a later date to support your claim.
You may not need to send them to us for your tax refund claim but we need to know that you have the evidence to hand if HMRC does ask for it so that you're protected by the RIFT Guarantee.
This depends on quite a few factors about your personal situation, so it’s best to speak to us directly and we’ll talk it through with you and let you know what to do.
You can claim for your meals bought in the Cookhouse or Mess during working hours though.
Read more about tax refunds for the Armed Forces.
This depends on whether your permanent residence is elsewhere. If you’re not sure and want to talk it through with us then give us a call and we’ll let you know how the rules apply to your situation.
If it is then you can claim tax relief against the costs of any takeaways or meals out you have to buy.
If you ordered online keep a copy of the email confirmation or save a screenshot.
If you went to the takeaway, then take a photo of your receipt or the menu board.
Use our Tax Calculator and find out if you're due a refund.
If you’re in Substitute Living Single Accommodation (SSA), you’ll get an additional allowance given to purchase food as you won’t be entitled to use the Cookhouse. You get this as a supplement in your pay so you can only claim if your expenses exceed the amount of the allowance.
Find out more about tax refunds for members of the Armed Forces.
Food that you don't personally pay for can't be claimed against for tax relief. For example, if you're at sea in the Royal Navy, your meals are provided for you and don't count toward you tax refund.
You should keep track of any meals you have to buy onshore or off-base, though, as those can often count.
Read more about tax refunds for the Armed Forces.
When you're claiming tax relief for food, you need to keep hold of things like receipts and order tickets as evidence of what you’ve spent. If you're paying by card, keep the slip that comes out of the machine. You can also get this information from bank statements but that will be much harder work.
If you take cash out of a machine to pay then take a quick photo of the withdrawal receipt. However, as with your bank statement this will only show what you took out, not what you spent so get a photo of the till total or anything else that shows the actual price you paid.
It’s a good idea to take a photo the price board or menu as extra evidence of your claim. If the menu doesn’t change you don’t have to take the same picture everyday – just one to show the prices is fine.
Here are some examples that customers have taken in the past. You don't need to take an award winning photo, just a quick snap of the prices like this will do.
You won’t need us to send all the records for us to do your claim but we need to know that you have evidence of your spending in case HMRC do ask for it and to make sure you're protected by our RIFT Guarantee.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
You don’t need to keep lots of paper. Store any photos, screenshots or scans somewhere you can easily find them on your computer. For now, just hold onto them. We may need to ask you for these at a later date to support your claim.
It's a good idea to take a photo of the menu board or price list where you bought your food. If it doesn’t change, you don’t have to take the same picture everyday – just one to show the prices like these ones taken at real works canteens.
If you order your food online then save the confirmation email.
You probably won't need them all to back up your tax refund claim but we need to know that you have the evidence if the tax man does ask for it.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
It's tricky to claim tax relief if you don't have proof of what you've spent. We may still be able to include your food costs in your refund claim if you’re working on a site where we have details of standard costs for.
Just remember to start keeping your records from now on to make things easier next year.
Use our tax calculator to find out if you're due a refund.
Yes. If you are staying overnight for work and your employer does not refund the money you spent on meals then you can claim tax relief in the same way as you can with other work related expenses.
Again, it’s important that you’re honest. Don’t claim to have eaten a 3 course meal in the hotel restaurant if you popped out to the local takeaway.
Don't forget to claim for the cost of food purchased during travelling to your temporary workplace. Whether you buy your food from the buffet trolley, the service station or at a shop or takeaway en route remember to keep the evidence so that we can claim the tax relief for you.
If you can't get a receipt for your food, even a photo of the price board can be helpful in proving what you've spent. Just take a quick snap with your phone and keep it safe. The taxman's not trying to trip you up or cheat you out of money. All he's after is evidence to back up your claim, so he's sure you're paying the right amount of tax.
You won’t need to send us all the photos for your claim. We just need to know you have them in case HMRC do ask for some evidence of your costs to make sure you're covered by the RIFT Guarantee.
Sometimes but if the subsistence allowance completely covers the cost of your food while you’re away from home for overnight stays then you can’t claim anything else.
If the amount does not cover all your expenses for food then you will be able to claim the difference.
If you’ve made your lunch at home, then you can’t claim the costs. This is because the groceries are part of your personal shopping bill, not work related expenses.
It's often strange little details like this that easily trip people up. That's why we're here to help make sure you get the best refund possible and always stay on the right side of HMRC's rules.
Use our Tax Calculator to find out if you can claim.
You can still claim even if your canteen is subsidised - but only for the subsidised amount that you paid.
Make sure to keep a record of what you spend so that we can work out the total at the end of the year.
If you didn’t get a receipt or meal ticket then just take a photo of the menu board or price list where you bought your food. If it doesn’t change, you don’t have to take the same picture everyday – just one to show the prices is fine.
Many people assume it’s not worth the hassle of keeping records of what you spend on meals because the refund you get back won’t be worth it.
Shockingly it turns out that you're probably looking at about a staggering £90,000 spent on food over your working life – that’s enough to pay off an average mortgage 6 years early!
The cost of food varies a lot up and down the country, and depends on things like whether you have a subsidised canteen at work. Still, the average daily spend of a person at work is £5 - £10. This means you should be getting £250 - £480 more back from HMRC in your refund every year.
If you don’t claim you’re missing out, on average, around £12-25k over the course of your working life – and that’s a considerable amount of money for taking a few photos of what you had for lunch.
Let's have a look at some examples:
Bill, is a builder working on a construction site in London.
Were you keeping track? Bill’s spent £9.94 already – and he’s probably a bit dehydrated at that!
All pretty simple so far, right? Only, Bill had to trek down from his home in Scotland for this job and travel home at weekends. He claims his tax refunds for the food he buys during his work day, but he's still missing out badly.
This means he spends £22.25 on food during his travels to work.
We can make a refund claim for your food related expenses as part of your travel tax refund, but not as a stand alone expenses claim.
Use our Tax Refund Calculator to find out what you could claim.
If you’re travelling to a temporary workplace then you can claim the costs for food purchased during this time.
This might be when you are travelling during the working day to temporary workplaces or it might be if you have to travel a long distance to get to a temporary site that you’re staying over at.
Whether you buy your food from the buffet trolley, the service station or at a shop or takeaway en route remember to keep the evidence so that we can claim the tax relief for you.
Find out what you could claim with our Tax Calculator.
It probably sounds obvious, but it’s worth spelling it out: when you’re not looking after your mental health, your ability to earn money can be put under pressure. Stress and depression can throw obstacles in your way that stop you thinking your way around a financial problem. You might find yourself avoiding talking to your bank or even checking your balance. You might start leaving bills unopened or even throwing them out – anything to avoid tackling your financial troubles head-on. Meanwhile, those problems just keep stacking up – and not just in the obvious ways. Yes, unpaid debts will only increase with time, but poor mental health can also have an impact on things you might not immediately think of – like ramping up your insurance premiums, for instance.
Looking at it from the other side, your finances can have a real effect on your mental health, too. In fact, money pressures are some of the main causes of anxiety and other mental health issues. When you’re facing serious financial trouble, opening an envelope, going to a benefits assessment or even just reaching out for help can be incredibly difficult. You might find yourself losing sleep or pulling away from friends and family, both of which will only make it harder to dig your way out of an emotional hole.
Meanwhile, a really tight money situation can make it more difficult to afford the basic necessities it takes to look after yourself. For some people, that might mean they can’t get the therapy or medication they need. For others, it could even leave them struggling to pay for essentials like food, heating and water.
Moneybox is a great little app with some really useful features and options under its hood. Depending on the kind of savings account you need, you can pick from Moneybox’s Simple Saver (if you need instant access to your rainy day stash) or versions with notice periods of 45,95 of 120 days. It only takes a few minutes to sign up, and you can kick off your account with as little as £1.
As for how you actually use Moneybox, you can set it up to accept regular weekly or monthly pay-ins, use it for “round-up saving” (basically socking away the change into your account whenever you spend) or both. You’ve also got a lot of control over the way your money’s saved or invested. You get interest on the basic kinds of savings account they offer (with the rates going up slightly for the versions with longer notice periods), or you can put the money into various types of ISA. You can even do things like put your round-ups toward your eventual pension pot if you want.
The nice thing about the Plum app is that it lets you group all your various bank accounts and cards into a single place. The idea is that seeing everything all together like this will give you a full and clear picture of your earnings, spending and savings. It’s a smart system, too. It can use the information you give it to study your spending habits and make better decisions to boost your saving power.
Plum is a free app, so it won’t cost you anything at all to use it for basic saving. However, there are some other pretty handy features you might decide are worth laying down a subscription fee for. Maybe you’re interested in hearing about investment opportunities, setting certain kinds of deposit rules or using its advanced budgeting tools, for instance. You’ll also need a Plum Plus/Pro subscription to open an Easy Access Premium account, with a slightly higher interest rate than the free version.
One of the most useful things about savings apps in general is how they help train you to handle your money better. For example, Chip is all about saving without stressing out over it. It can study your spending habits, make suggestions about how much you should be able to save and even move what you can spare into a savings account for you. You can set goals for yourself, like saving toward a holiday or a house deposit, then let the app guide you toward small, affordable and regular savings you can make toward your target. If you don’t want to stick to its suggestions, you don’t have to – and its AI systems will remember your decisions and use them to offer better advice in future. You can also get access to your cash whenever you want it.
Another bank-in-your-pocket type of service, Monzo links up with other popular services like Apple Pay and Google Pay. It’s got some interesting features, like the ability to switch your energy provider. You can divide your income into different categories for your savings, bills and general spending, and set specific budgets to help control the cash you’re splashing. There’s even an option to buy now and pay later with Monzo Flex.
You can save in a range of ways with Monzo, from fixed-rate savings accounts to Easy Access ISAs. You can also set up separate “pots” to save toward any specific goals you have. Again, there’s a round-up saving feature to help make your saving more automated and sustainable.
These four examples really are just the tip of the savings app iceberg, and more are cropping up all the time. Depending on your savings goals and the kind of phone you use, you might find the exact combination of features you’re looking for in other options like Starling Bank, Revolut or Money Dashboard. They’ve all got something to offer, like Moneyhub’s friendly little “nudges” when you’ve got upcoming payments to make, so look around a bit before making up your mind.
If we had to make just one money-saving app recommendation, though, make sure you’ve grabbed the RIFT app to help you make and track your tax refund claims. You can even refer your friends to RIFT straight from your phone’s address book for their own tax refunds, earning cash rewards and prize draw entries just for being a good mate.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
The idea of transferring £2,022 straight out of your current account into a savings account that’s not meant to be touched is scary for many. If you’re worried you’ll struggle to cover bills and living expenses, it’s just not possible.
But that doesn’t mean it’s beyond your financial reach to save that much in a year. In fact, when you break it down, it’s suddenly much more manageable.
Take that £2,022, and divide it among the 52 weeks of the year. Don’t worry, we’ve done it for you! It works out as £38.88 a week, which of course sounds a lot easier to do. Set a reminder each week to transfer that £38.88 into your savings account so you don’t go spending it!
Or, better yet, if you have both a checking and savings account with the same bank, you can set up an automatic transfer. So, the money goes straight into your savings each week. You won’t even have to think about it.
Okay, we know – simply transferring £38 once a week isn’t much of a challenge for some. But if you’re new to saving, it’ll help you get into the habit of putting money aside for the future. However, if you think you can afford to put away a little bit more each week, why not add a bit of fun to your saving journey?
Here’s how it works. On Monday, transfer £1.50 into your savings. Then on Tuesday, £3. Then Wednesday, £4.50. Each day, increase the amount you save by another £1.50.
By the time Sunday comes around you’ll transfer £10.50 in your account, making it £42 after a week. The following Monday, restart at £1.50 and work your way up each day, carrying on the same pattern for a year.
If you stick to the challenge week in, week out for a year, you’ll have £2,184 saved up and ready for you to use! Take the family on holiday, buy new furniture or even invest it. Not bad!
We get it – Contactless payments and paying for things by phone mean it’s easier than ever to spend without thinking about it. But have you ever actually stopped to look at how much money leaves your current account? You might be in for a nasty shock.
Plenty of banking and budgeting apps out there can split your payments and categorise them. They’ll separate them into necessities like energy bills, shopping trips for clothes, and leisure activities like gig tickets and restaurant bills. With a breakdown like this, you can see the things that you’re perhaps spending a little too much on and cut back a little to make a difference.
For example, are you going out to eat or getting a takeaway every week? The average cost of a restaurant meal in the UK is between £15 and £25. Let’s assume for argument’s sake that each meal costs £25 – just by cutting out a single restaurant visit per month, you’ll save £300 a year. That puts you well on your way to your savings goal.
And what about streaming services? Fair enough, they only cost around £10 a month each, which is very reasonable – but how many are you signed up to? Around 60% of British households now pay for at least one streaming subscription, but we reckon the majority are paying for more than one. Netflix, Spotify, Amazon Prime, Apple TV, Disney +, NowTV- the list is endless!
When it’s a direct debit payment, it’s easy to forget you’re paying for the service until the money leaves your account. Take a look at how often you use each subscription service and see if it’s worth unsubscribing for a while.
If you use it, keep it! It’s not that big an expense for keeping entertained. But if you’re not using one anymore, unsubscribing for a year could save you around £120!
The 1p challenge is a great way to save hundreds of pounds over one year without hitting your day-to-day finances. But the truth is, if you’ve got a target of around £2,000 to save, you’ll need to step up your game a bit.
Briefly though, the 1p challenge requires you to save a penny on the first day, then 2p the following day, then 3p, adding a penny each day until the end of the year when you save £3.65. After a full year, you’ll have £667.95 saved.
It's great but it still doesn’t come close to that £2000 target. However, that doesn’t mean you can’t do a 365-day challenge of your own. Instead of starting off with 1p, start off with £3.01. That’s roughly the price of a cup of coffee on the high street. Just like the original method, add a penny to the amount you save every day. By the end of the year, you’ll be saving around £6.60 (or the cost of lunch) every day. And when you add it all up after you’ve completed your year of saving, you’ll have well over £1700 saved up! That’s not that far from the target at all…
It’s no secret that groceries are really starting to shoot up in price as a result of inflation, import costs and availability. But there are always a few useful cheat codes you can use to keep that weekly supermarket bill to a minimum.
Most supermarkets have reward schemes that take money off your bill. Usually when you spend a certain amount, buy certain products, or return a number of times to the store. For example, Tesco’s Clubcard reward scheme marks down the price of particular groceries across the store, but you only pay the discounted price when you’re a Clubcard member. So, what’s stopping you?
Some products end up being up to 50% cheaper with rewards schemes, so keep an eye out for the items that are on offer and choose these over the fully priced alternative.
But of course, it’s not just Tesco. There are also app based reward schemes like Lidl Plus with exclusive rewards just for app users. And Sainsburys take £2.50 off your bill for every 500 Nectar points you earn. So, whichever supermarket you go to, it’s always worth signing up to their reward scheme if they have one.
If you’re not a member of any reward schemes, don’t worry. There’s still one big thing you can do to save money on your bill: go for supermarket own-brand.
You’ll always find people that claim to be able to taste a great difference between branded and supermarket own groceries. But in most cases, the biggest difference is in price.
The staples on your shopping list, like eggs, flour, oats, spices, can cost anything from 60p to over £1 more when you go for the branded version.
Take a look at the items you regularly put in your basket to see if you could do with a brand change. It may seem like it’s nothing big at first. But, by the end of the year, those small decisions will have turned into big savings!
There you have it! Those are just a few ways to save some cash in 2022. Of course, this isn’t an exhaustive list, and there are plenty more challenges and ideas out there, so do your own research too. Remember though, some ideas won’t suit everyone. Make sure you consider your full personal and financial circumstances. And if you’re in doubt, speak to a financial advisor.
Let’s start with the basics. What are you saving for? And how much will it cost? Write both down - because you’re 42% more likely to achieve a goal you’ve written down than one rattling around in your brain. And you’re even more likely to reach that figure if you keep track of your progress.
So consider the difference…
You’ve now set yourself up for success - just by writing down a number.
Let’s say your target is to save for something big. We’ll stick with £30,000 for a house deposit for now.
Looking at that total is like standing at the foot of Everest, wondering how you’ll ever get to the top. It’s going to seem like an enormous climb. So start breaking it down. Don’t think “£30,000.” You don’t need to - you’ve already written it down. Instead, think “£116 a week”.
Now, think even smaller - because you don’t need to save £116 from this week. Take it easier at first - focus on getting into good saving habits that will stick. So maybe this week, you just save £50. And then £65 the week after. And then get yourself up to £125 gradually to account for the difference.
If you’re lucky enough to be buying a home with someone else, maybe you can split those figures between you. So now, you can conquer your savings Everest together - one small step at a time.
You might have heard the saying “pay yourself first.” This should probably be “save first,” if it were more accurate. Here’s what it means…
Most people get paid straight into a current account. They pay their bills first, which is smart. But then they go about their lives, ordering takeaway, going to the cinema, going on family trips…
It’s only after all that money’s spent that the leftovers get saved - if there is anything left at all.
So if that sounds like you, it's time to flip your thinking on its head. Paying yourself first means paying 20% of your income into an account you don’t touch - ideally, one with a good interest rate.
Your expenses should add up to no more than 50% of your income. So you should be able to set up direct debits for your bills without missing the money. “Paying yourself first” uses the same approach but for savings…
Set up a standing order from your current account to a linked savings account - for around 20% of your paycheck. Set it for a couple of days after your usual payday.
If that 20% isn’t enough to hit that savings goal, go back to step one.
Your options are:
Don’t give up on your savings goal until you’ve had a good look at both.
What you do next with that 20% in savings could be a game-changer - depending on your risk appetite…
Thanks to the magic of compound returns, you don’t have to save every penny of that £30,000 yourself. The trick is to put your money somewhere that pays you compound returns - like an account with a healthy interest rate.
However, interest rates on savings accounts are currently low - generally, lower than inflation. They’re especially low if you don’t want to lock your money away in term deposit accounts. So even if you get a generous 2.5% interest, your money’s still losing 2.5% of its value if inflation is 5%. However, it’s still far, far better than getting 0.1%, or even 0%. So finding a bank account with the best interest rate possible is a great place to start!
Let’s go back to that £116 per week that will get you £30,000 after five years. With an interest rate of 2.5%, that comes down to just £108.
This is the beauty of “compound returns,” or in this case, “compound interest” - because your returns are coming from an interest rate.
It’s the effect of earning returns on your returns. And time is the key factor.
Let’s use a different example. Say you invest £1,000 and it returns exactly 10% every year for five years. After the first year, you’ve made an extra £100. So now you have £1,100. The following year, you’re not making 10% on £1,000 - you’re making 10% on £1,100. So that’s £1,210. That continues until you have £1,645 after five years. That’s a 64.5% return on your investment.
But we know 10% isn’t achievable from high street bank savings accounts. So what about investing?
In general, investing can be a great way to get a decent return on your money. The figure often quoted is around 7% to 8%. That’s based on the average return of the S&P500 - a share index used to gauge the market’s general health.
However, that’s an average. In some years, returns have been way higher than 8%. In others, far lower. In 2008, for example, the return was -38.49%
So time is key. If you put £1,000 into stocks & shares today, and the market fell by 20% over the year, what then?
If your saving plan stops at five years, this might not be enough time to balance out any losses and make a good return. On the flip side, what if the yearly return was 26.89%, like it was in 2021?
So remember that average - the longer you invest for, the closer you’ll get to that average 7 to 8%. If you did hit that average over five years, you’d only need to put away £95 a week to hit £30,000. But the market determines what that average will be - it could be far higher over the next five years. It could be far lower. So think hard about the risk involved before investing.
So, there are a few different options for hitting your five-year plan. Maybe you could keep some in savings and invest some of the rest? It all comes down to deciding what’s best for you - and what you’re comfortable with.
And remember, this is not an exhaustive list. There may be other options on the market that we haven’t covered here. So as always, do your own research. Consider your full personal and financial circumstances. And if you’re ever in doubt, speak to a financial advisor.
Even if you miss out on a claim, there could still be time to get your tax refunds from previous years. There are limits to the taxman's patience, though. The tax refund rules say you have a hard deadline of 4 years to claim your tax back. Anything you’re still owed after that deadline is gone for good.
There are 3 types:
While we’re talking about surveys, your mortgage lender’s going to want to check your potential new home out as well – and they’ll expect you to foot the bill for it. Basically, what’s happening here is the lender needs to know that the property you’re buying is a safe bet for their money to ride on. When you take out a mortgage, you’re essentially putting up the property itself as security for the loan you’re getting. Naturally, enough, the lender’s going to want to give the place a once-over before committing. The costs for this will vary from lender to lender, so make sure to ask questions up-front to avoid any nasty surprises later.
This one’s supposed to cover the cost of actually setting up your mortgage deal. As with valuation fees, every lender’s going to have their own fee structure for this, so make sure you know what you’re getting yourself into ahead of time. For example, one lender might charge a single flat fee, while another will base the charges on the value of the property – which might be a problem with larger mortgages.
You’ll have a couple of different approaches to choose form here. If your finances are up to it, you might decide to cough up the arrangement fees at the start. As with your house deposit, this can be painful at first but end up saving you money down the line. If you decide to lump the fee into the total mortgage amount instead, you’ll spread the payment out over the lifespan of your repayments, but get hit with extra interest charges along the way. Depending on your situation, picking a mortgage with a higher interest rate might actually work out better if it brings the arrangement fee down enough
With all these factors to weigh up, picking the right mortgage and lender can be tough. That’s why so many buyers find themselves coughing up £400-£500 to a mortgage broker for advice. Not every broker works or charges the same way, though. Some, for instance, might not actually charge a fee at all, getting a commission from the lender instead. Others will do both.
Like a vehicle loan, a mortgage agreement is designed to cover the cost of the place you’re buying, minus any down payments or deposits you’ve already paid out. Another thing a mortgage shares with a vehicle loan is that the property itself is considered ‘collateral’ for the deal. If you can’t keep up the payments, you’ll lose your home to ‘foreclosure’ proceedings.
A mortgage is probably the single biggest debt you’ll ever shoulder in your life, with common payment terms easily hitting anything from 10 to 30 years. As with other loan varieties, you’ll be making regular interest payments along the way, which may be fixed throughout the mortgage’s entire lifespan or vary up or down over time.
This is where things can get a little sticky. In a mutual credit agreement, borrowers and lenders can trade with each other without any actual money changing hands. It’s like a network where people or businesses can work together without needing to keep a lot of cash on hand. Confused yet? Picture this: Business A offers its products or services to a trusted network. Instead of money, it gets ‘credit’ within that network, which it can use to buy things from other members without using conventional money. Unlike other kinds of credit or loans, any ‘debts’ within the network don’t get fattened up by interest. Also, since the value of the credits in your account is agreed across the whole network, any debts can be settled in cash or other equivalent means.
You'll need a MyRIFT account to hold all the information needed to make your tax refund claim with us. It's free to set up and it's the easiest way to update your info, track your documents and make your claim.
New to RIFT
If you're new to RIFT and wanting to get your claim started, have checked that you're due a refund by answering the 4 simple questions, and filled in your name, email address and created a password then you've already created your account. You should also have received a Welcome to RIFT email that contains more information about what happens next and has all the links you need.
Login page to continue updating your information.
If you need to reset your password, you can do that from the login page.
If you need any help, give us a call on 01233 628648 or use the Live Chat to talk to one of our Customer Service Team.
Returning to RIFT
If you've claimed with us before using a paper Refund Pack or Forms by Phone and not yet set up your MyRIFT account then get in touch by calling 01233 628648 or using the Live Chat below and we can get your account created and make it easier for you to claim this year.
Once you're logged in you'll be able to fill in your personal details, work locations, expense details and upload relevant documents. It's everything you're used to doing when making a claim with RIFT, but much quicker and easier now. You can also track the progress of your claim whenever, and wherever, you want to.
Once you are happy you have uploaded all the necessary information, press submit and we will take it from there!
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
If you're already a RIFT customer and have given us information online before then you'll have done that using your MyRIFT account. If you can remember your login details, you can sign, update your info for this year, upload your documents and get started right away.
It might be a year or more since you last used your MyRIFT account, so if you can't remember the details (email and password) you used to set it up just get in touch using the Live Chat here on the site, call 01233 628648 or drop us an email to info@riftrefund.co.uk and we'll get it all reset and ready for you to use again.
If you've claimed with us before using a paper Refund Pack or Forms by Phone and not yet set up your MyRIFT account then get in touch and we can get your account created and make it easier for you to claim this year.
If you're not sure if you've got an account get in touch and we can check for you. If you have, we'll help you get started, if not, we'll get you set up.
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
If you forget your password for your MyRIFT account, look below the log in button and you'll see a helpful link to ‘reset your password’.
Click the link, enter the email address you use to login to your MyRIFT account and we will email you a link to reset your password.
Once you get the email, open it and click the link which will take you a page where you'll be asked to create, and then confirm, the new password you want.
Press ‘change password’ and you will be taken to the homepage of your MyRIFT account.
If you can't remember the email address you used when setting up your account, or need help with anything else, please give us a call on 01233 628648 or use the Live Chat below and we can get you all set up.
If your email address has changed since you set up your account, or if you want to use a different email address for any reason then it's easy to update.
If you still have access to your old email account, use it to login and then you'll be able to update your email address on your MyRIFT Personal Dashboard.
If you no longer have access to your old email address, or can't remember it, and need us to update your account to your new address then give us a call on 01233 628648 or use Live Chat and our team will be happy to get it all sorted out for you.
There are a couple of reasons that you may have a MyRIFT account and not realise it.
Account created a long time ago
The most common is that you set one up when you first made an enquiry to RIFT, and that could have been quite a while ago. If you answered the 4 questions on our website to see if you were due a refund you would have been given the option to set up your account. Do you remember filling in your name, email address and creating a password? If so that's when it was set up and you would have also received a confirmation email.
If you have an account already, and can remember the details you gave when it was created, you can use them to login, reset your password or update your email, and then continue with your claim online.
If you aren't sure of any of the details you used and need us to reset them, give us a call on 01233 628648 or use Live Chat and our Customer Service Team can help you.
Account created for you by Customer Services and never needed
If you made a claim with us over the phone one of our Customer Service Team may have asked you if you would like them to set an account up for you to use. If they did this then you would have been sent an email with instructions on how complete the set up and create your password and confirm login details, but if this was it the case it was probably more than a year ago now.
What this means is that the account is sitting there in the system, even if you never needed to use it.
It's easy to get it reactivated so that you can update your info, upload your documents and track the progress of your claim this year, though.If you do still have the set up email, you can follow the instructions but it's probably easier to just give us a quick call on 01233 628648 or use Live Chat and we can get it all working for you.
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
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You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message.
National Insurance Contributions (NICs) are payments taken by HMRC from your Pay As You Earn (PAYE) earnings, or from your business profits if you’re self-employed. They’re taken on top of other taxes like Income Tax, and go toward things like the State Pension and various benefits.
National Insurance Contributions come in 4 basic types. Depending on your work and other circumstances, you may have to pay more than one type:
Class 1 NICs
These are the National Insurance Contributions paid by most UK employees. They’re taken automatically from your earnings by your employer, through the PAYE system. You keep paying Class 1 NICs until you hit the State Pension age.
Class 2 NICs
Self-employed people don’t generally use the PAYE system to pay their tax. Instead, they file Self Assessment tax returns each year to tell the taxman about their profits and business expenses. Since they don’t have an employer, they pay Class 2 NICs rather than Class 1, which are handled through the Self Assessment system.
Things changed a lot for the self-employed with the 2024 Spring Budget, which saw the abolition of Class 2 NICs. However, self-employed people with total profits under £6,725 a year can chose to keep paying NICs, to make sure they're still entitled to the state benefit they cover.
Class 3 NICs
If you’ve got gaps in your National Insurance history, you can make voluntary NIC payments to plug them. These voluntary payments are called Class 3 NICs. They can make good sense if you’re looking to make sure you qualify for things like the maximum State Pension rate.
Class 4 NICs
Class 4 National Insurance Contributions are another kind of payment made by the self-employed. If your profits from self-employment are high enough, you pay Class 4 NICs as well as Class 2.
Things get slightly more complicated if you’ve got more than one kind of income. Employees who also have some self-employment income could find themselves paying Class 1 NICs through the PAYE system and (until their abolition on the 6th April 2024) Class 2 NICs through Self Assessment. If their self-employment profits are high enough, they’ll pay Class 4 NICs as well.
The rates for National Insurance Contributions depend on the class you’re paying.
From 6th April 2023 to 5th January 2024: 12% on income from £242-£967 per week. 2% on income over that threshold.
From 6th January 2024 to 5th April 2024: 10% on income from £242-£967 per week. 2% on income over that threshold.
From 6th April 2024: 8% on income from £242-£967 per week. 2% on income over that threshold.
Before the 6th April of 2024: £3.45 per week if your profits are over £12,570 a year.
After the 6th April 2024: Class 2 NICs are abolished. You can still opt to pay them if your profits are under £6,725 to keep your entitled to the state benefits they cover.
£17.45 per week. These can be paid to make up for gaps in your National Insurance record.
Before the 6th April 2024: 9% on profits between £12,570 and £50,270. 2% on profits over that threshold.
After the 6th April 2024: 6% on profits between £12,570 and £50,270. 2% on profits over that threshold.
National Insurance Contributions don’t kick in from the very first penny you earn. In fact, if you’re under 16 you won’t pay them at all.
If you’re over 16:
Keep in mind earning too little to pay National Insurance Contributions won’t necessarily mean you end up with holes in your record. If you’re earning under £184 a week from employment, for instance, you count as having paid your NICs. Basically, you’ve got some automatic protection built into the system.
If you’re self-employed, but your profits are too low to pay Class 2 NICs, you can still make voluntary Class 2 payments. This can be important in making sure you still qualify for certain benefits.
Another thing to keep in mind is that your earnings don’t get “averaged out” when your National Insurance Contributions are calculated. For instance, if you earn enough in one week to pay Class 1 NICs, you won’t get that cash back just because you earn less the next week, or for the rest of the year.
If you have expenses of over £2,500 to claim, you'll need to use a Self Assessment tax return to get your refund. You may also need to use Self Assessment if you have other untaxed money coming in or investment/savings income over £10,000. To use the system you have to register with HMRC, and then file a yearly tax return by the 31st of January.
If you’re not an employee, you won’t use a P87 form to claim back any overpaid tax HMRC owes you, because your income isn’t taxed through PAYE before you get it. That doesn’t mean you can’t get tax relief for your work expenses though. For self-employed people, for example, many of the basic, everyday costs of running their businesses can bring down their tax bills through the Self Assessment system.
One important thing to realise is that it’s possible to be an employee and self-employed at the same time. In that case, your tax situation can be a little more complicated, but you can still claim back some tax for the essential expenses of your PAYE job with a P87 form.
Here’s your 50% section. Half of your total income should be allocated to essential living costs and purchases. This is where your mortgage or rent payments belong – which are the biggest expenses most people have. You’ll also need to slot in things like:
Drop 30% of your income into this category. Here’s the stuff that you can do without, but wouldn’t necessarily want to skip all the time. Examples include:
Here’s where the remaining 20% of your income goes. You’ve got a ton of options for what to do with your savings – enough for a whole article of its own, in fact. For the moment, though, how you divide your spare cash into short and long term savings will depend on your situation and needs. One thing that’s worth thinking about, though, is how quickly you might need access to your money. Dipping into your savings to cover an emergency bill is a lot easier if you’ve got some cash in an instant access savings account, for instance. You don’t need to put all your eggs in one basket, but making sure you can get your hands on a chunk of your savings in a hurry is a solid move.
Of course, having your vehicle out of use might not be your own choice. It might have been written off in an accident, or even stolen. Just taking your vehicle out of the country for a while can end up with you being owed some tax back from the DVLA, so be careful not to miss out.
Yes, as long as you’ve got a receipt from the taxi driver.
We can’t claim without the receipt because prices can vary a lot and we need evidence of your actual expenses for HMRC. We can only claim for the actual taxi rides you made, not the average cost between two destinations.
Have a look at our checklist of the documents or paperwork we'll need for your claim.
Use our tax calculator to see if due a tax refund for your travel and expenses.
No this is completely different. Seafarers deduction deals with residency issues and how many days you are out of the country. Our claim is for your travel from your home to the heliports.
Tax refunds aren't just for offshore travel expenses, either. The tax rules also allow offshore workers to claim for hotel bills and a number of other expenses. If you're footing those bills yourself, you could be due some cash. Working offshore is challenging enough already. You don't need the taxman drilling deeper into your wages than he's supposed to.
Use our tax calculator to find out if you're owed a refund.
Yes, as long as you’ve got the receipt.
We can’t claim without the receipt because costs for hotels can vary a lot, even for the same room on different dates.
We need evidence of your actual expenses for HMRC. We can only claim for the actual stays you made.
Have a look at our checklist of the documents or paperwork we'll need for your claim.
Definitely. Most of our offshore clients work two weeks on, two weeks off and we can claim on average £700 - £900 per year.
Use our tax calculator to see if you're owed anything for the past 4 years.
If you’re having any problems with getting your travel history, we've listed 2 possible options below:
Don’t worry to much if you can’t remember everything, we don’t need exact dates and locations for your first claim, just give as much detail as you can.
By the time you come to make any future claims you'll know what to keep each year so we'll probably be able to claim a lot more for you.
The open credit system’s kind of a mixture of instalment and revolving credit plans. They’re broadly grouped under the good old ‘buy now pay later’ category. The borrower gets to make multiple withdrawals up to a predetermined limit, only stacking up interest on the amount they’ve actually borrowed. On a monthly schedule, the borrower gets a statement of what they owe, paying it off to keep the scheme going. You often see this kind of credit arrangement with things like phone and energy bills. You use what you need now, then pay up later.
It really does pay to keep your finances tidy, especially if you’re trying to cram major costs like home repair bills into your budget. If you’re used to using spreadsheet software to organise your household finances, then this tip should feel like second nature by now. Use your spreadsheet to separate out all the various costs that make up your home repairs. That includes hours of labour, of course, but you’re also going to want to look at the cost of the fittings and materials you need. Listing out the costs like this puts you in a good position to spot ways to bring the overall bill down, like an opportunity to go with a slightly cheaper material. Click on the video below to watch our guide on how to make a budget.
Working overseas is another area where your tax situation can get tricky. Whether or not you end up paying UK tax is largely decided by your “residency status”. This basically just means whether or not you’re considered to live in the UK for tax purposes. Non-UK residents, for example, don’t have to pay UK tax on their overseas earnings. UK residents, on the other hand, can often find themselves paying tax on their foreign income, unless their permanent home (“domicile” in the taxman’s language) is abroad.
As for how you’ll pay anything you owe in the UK, it’ll generally be handled through a Self Assessment tax return. The rules can vary depending on which country your money’s coming from, though—and if you’re not careful it’s possible to end up being taxed in two countries on the same income!
As good as HMRC’s automatic systems are they can still get it wrong. Ever been sent a tax rebate that you weren't expecting and it felt like Christmas? That’s because HMRC has seen that you’ve paid too much in tax and sends it back your way. It’s also proof that they can get it wrong. It pays to stay on track with how much tax you should be paying and how much you’re shelling out.
Before we dive into how you might be overpaying your tax, it’s best to get an understanding of how you can keep on top of it all. Although it may seem like overkill, the government recommends keeping any records you might have received, prepared yourself or claimed just to be on the safe side.
Folders are your friends. You should aim to keep all your documents in an old-school physical folder or a digital one on your desktop. If you opt for the digital option, make sure you scan both sides of any document and back these up regularly. Many of us struggle to remember what we had to eat for lunch nevermind what we paid in tax last year. Storing documents in date order makes it easier to reference any questions you may have for HMRC.
If you’re an employee and do not own a business, the government states you must keep all records for 22 months from the end of the tax year that they relate to. For instance if you have a tax return dating back to July 2020, you’ll have to keep hold of it until May 2023 since the tax year ends in April. However, if you've set up your Personal Tax Account, that information will already be there. As will all other tax information relating to you. This time may even be extended if you fail to submit your return on time. For the self-employed or those in a partnership, this is extended to 5 years from 31 January following the end of the tax year that they relate to.
The most common overpayments are caused by new employment, inaccurate self-assessment forms or work expenses. When you start a new job you may be placed on an emergency tax code if your income details aren’t received in time by HMRC. An easy way to spot this is if your first pay cheque is lower than expected and your tax code is 1257 W1, 1257 M1, or 1257 X. Most of the time this will be automatically sent back by HMRC but you can hurry up the process if you contact them directly.
When it comes to Self-assessment forms there are a number of ways you can overpay on tax. Mistakes can result in overpayment but can be resolved if you send a corrected version to HMRC, they’ll then be able to make a repayment or take it away from your outstanding amount. You may have also overpredicted the payment on your account so it’s worth chasing this up if your takings don’t match up.
Since HMRC can only go off the information that you give them, they’ll never be able to see the money that you may be dishing out on the things you need to work. Things like
Expenses are seen as a justified cost in the eyes of the government and you shouldn’t be penalised for paying into your business. As both the self-employed and those trading as a limited company can claim expenses, we’ll help you figure out what classifies as an allowable expense.
In the day-to-day running of your business you will most probably have a number of running costs. By taking these from your taxable profit, you can reduce the overall amount of tax you pay. It’s important to note that any private purchases for personal use do not qualify. So unless that Smart TV is going to stay in your office you might want to leave it out.
As well as the usual suspects of stationary, travel and staff costs, you might be surprised with some of the expenses you can claim on. With a growing number of us working from home you can actually claim on some of your housing costs. Things like electricity, broadband and rent all qualify. To do this, you’ll need to divide your costs by the amount of time you spend working from home. There is a level of trust within this but as long as your reasons are justified, there’s no reason why you can’t save some money.
If you already own a limited company, you’re probably used to filling out paperwork as it’s your responsibility to pay your own tax. For those looking to dip their toes into going limited, you’ll need to know about the added responsibility that comes with this. As well as paying tax on all profits, your limited company must keep all records regarding the company’s information, accounting and finances for six years from the end of the tax period.
In a similar way to self-employed expenses, you can claim allowable expenses to reduce the amount of tax you pay. Limited companies fall under the current corporation tax of 19% so this will be applied to your profit once expenses are taken from the total. Working from home still counts as an allowable expense even if you split your time between an office.
All taxpayers can legally appoint someone to contact HMRC on their behalf. If you just need some help from a family member then they can apply to be registered as a trusted helper. For someone to actually correspond on your behalf then you’ll need to write to HMRC and make them an intermediary. For those who want to be as hands-free as possible, you’ll need to appoint an actual agent to process your tax and HMRC may ask you to complete a specialised form.
Having money coming in from overseas can be a huge headache when it comes to paying your tax. This is a massive topic, full of wrinkles, exceptions, dangers and pitfalls. A lot depends on whether you’re considered to be a “UK resident” for tax purposes – and there’s a series of tests to work out exactly where you stand there. You can even be a “non-domiciled resident”, meaning a UK resident whose permanent home is abroad. If the worst comes to the worst, you could even find yourself being taxed in more than one country on the same income. The UK has some “double-taxation” agreements in place around the world to try to solve this, but they’re not universal. When in doubt, talking to a tax professional can save you a lot of hassle when you’re dealing with overseas income.
Even if you actually live overseas, you can still find yourself paying UK tax on any UK income you’ve got. This can include anything from wages and savings interest to rent money and pensions (usually not your State Pension, though). If you qualify for a Personal Allowance, of course, you’ll still get the benefit of that. If not, you’ll be paying tax from the very first penny you earn.
As for claiming back any tax you’re owed, you can either do this through your normal Self Assessment return or form R43.
While it's uncommon, you can face both Inheritance Tax and Capital Gains Tax on the same assets, often due to timing. Quick sale after inheritance typically avoids this. Costs like estate agent and solicitor fees can offset gains, but general maintenance doesn't count. Proof of expenses is crucial for tax relief. The same system applies to all assets; if an asset gained £100,000, you'd pay Capital Gains Tax on that. If you spent £10,000 on improvements and fees, your taxable profit is now £90,000, and after the £12,300 allowance, you'd pay tax on the remaining £77,700 profit.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
A P60 is a really useful tool for claiming a tax rebate from HMRC, but you can still make a claim without one if necessary. When you’ve got RIFT working on your refund, there are other ways we can track down the information needed for your claim. We can use things like payslips and income statements, for instance – and can even get key information directly from HMRC.
If you've lost your P60, grabbing a replacement P60 from your work shouldn’t be a major hassle. The same goes for P60s from previous years if you need those as well. Just talk to your employer and explain what you need. This can be a real boost to your tax refund if your claim stretches back over more than one year.
Since a P60 is the record of all the tax you've had deducted over a year, it’ll probably be your first tip-off that you’re owed a rebate in the first place. On top of that, it’s got a lot of the most important information needed to show HMRC that you've paid too much tax. To kick things off, compare your P60 to your payslips. If something doesn't add up, you’ve got your first clue right in your hands.
Because a P60 is a record of your PAYE earnings and tax over a year, Sole Traders won’t usually get (or even need) them. Being self-employed, Sole Traders use Self Assessment tax returns instead of PAYE. Of course, it’s completely possible to be a Sole Trader but still also receive PAYE income from another job. In that case, you’ll still get a yearly P60 as normal from your PAYE employer.
You can claim for work related costs such as:
To make a claim you'll need:
On average it can take HMRC around 10-12 weeks to process a claim. These timescales can vary though depending on the time of year.
When claiming a tax refund from HMRC you can claim back for the last 4 tax years. This means your refund value could be substantial.
A P87 tax refund form is for employees who are taxed through the Pay As You Earn (PAYE) system, and have work expenses to claim tax relief for. It doesn’t matter what kind of work you do. If you’re paying from your own pocket for the essential costs of doing your job, you could be owed a tax refund. 2 out of every 3 UK workers miss out on the refunds HMRC owes them, mostly because they never even realise they can make a tax rebate claim.
Sitting at the opposite end of the scale from decades-spanning deals like mortgages, payday loans are short-term agreements for much smaller amounts of money (usually £1,000 or less). You can get them from specialised websites or high street firms, and they do a good job of making it easy to get the emergency cash you need right now. The interest rates are eye-watering, though, despite the various safeguards that have been set up to protect you. You should never have to pay back more than twice what you borrowed, for instance.
Before taking out a payday loan, it really is worth considering your other options. They might seem like an easy way to get you through a tight financial pinch, but they can throw up a few red flags in terms of the actual value they offer.
When you're working one of more PAYE jobs, your Income Tax and National Insurance Contributions (NICs) are handled automatically. Basically, a chunk of your cash gets carved off and sent to HMRC before you're even paid. It's tempting to assume that you don't need to worry about it, since it's all out of your hands anyway – but it's not that simple. It comes down to your tax code, and in the taxman's eyes it's entirely your fault if something goes wrong with it.
Lifetime ISAs (or LISAs for short) were originally launched as an alternative to other individual pensions, something that you can read up on in our SIPP vs ISA rundown. As well as being a place to stash your savings away for retirement, they can also be used for reaching landmark life goals like buying your first home. They come in two forms - a standard Cash LISA or a Stocks & Shares LISA.
Both account types can be opened between the ages of 18 and 40 but unlike pensions, your annual savings limit is knocked from £40,000 to just £4,000. Despite receiving a 25% bonus up to the maximum of £1,000 a year, the government does stress that this should not be used in replacement of a traditional pension. As amazing as the government’s 25% bonus may sound, this will only be honoured for any withdrawals after the age of 60. Whatever you withdraw before this age will receive a 25% penalty and basically cancel out the top up you would’ve received.
If you were to start saving the maximum amount from 18 up to 50, you’d only end up with a total of £160,000 which, in most cases, wouldn’t last the length of your retirement if held in a Cash LISA. The Stocks & Shares LISA allows you to try and better your savings via growth in the stock market but there is no promise of this and you may actually lose money. As much as we’d love to be able to explain the stock market in a few sentences, we suggest reading our Top 5 Beginner Investment Funds to get a better idea of how Stocks & Shares actually work.
As this ISA is designed to dabble in the stock market, many see it as a place to put your pennies for the mid-to-long term. You won’t receive a bonus like a LISA but you can save up to a maximum of £20,000 a year in one of these accounts. Any money you make will be entirely tax-free and can be accessed whenever you like and without penalties.
Common advice says that you shouldn’t put any cash that you may need access to for the next 5 years. This, in theory, will help you ride out the highs and lows of the market and give you a better chance to make money. In a similar way to the Stocks & Shares LISA it’s important to reiterate that your money can go both ways. No matter how many financial advisors try to tell you different, it’s best to remember that even the so-called safest bets still carry some form of risk.
Benefitting from the same £20,000 tax-free saving limit as the Stocks & Shares ISA, Cash ISAs are mainly used to save money that you might need to dive into at short notice. Even if you won’t be throwing your money into stocks it can still be in danger of losing its value. In times of high inflation and low interest rates such as now, your money will actually buy you less than it can today. If your weekly shop costs 10% more in five years and your savings have risen by 2% in the same time, your money will have lost 8% of its original value. As you can see, this could have a massive effect over time and it’s why many people choose alternative places to store their retirement funds.
We’ve all heard of a pension and most of us are told to save into one, but what do they actually mean? To put it simply, pensions are a special savings account so that you don’t spend all your money before retirement.
Pensions persuade you to tighten your purse strings now in return for tax relief on your money later. If that’s not enough, any money you make via interest or growth will be tax-free. What this means in real terms is whatever you save will be boosted based on your usual tax bracket. If you normally pay the basic rate of 20%, you’ll only need to save £80 in order to have £100 in total. For higher rate taxpayers this drops to £60 and additional rate taxpayers only need to pay £55. You can save your entire salary up to a maximum of £40,000 per tax year and still receive these bonuses. If you continually hit the max in search of the saving superhero title, be wary of the whopping £1.073m overall limit otherwise you might be taxed for any extra you put in.
Your pension pot has even more potential for savings thanks to something called the workplace pension scheme. Every employee since 2012 who’s aged over 22 and earns over £10,000 a year would’ve been auto-enrolled already. As well as benefiting from tax relief, you’ll receive at least a 3% bonus thanks to the minimum employer contribution. Don’t worry if you don’t meet this criteria as you can still ask to be enrolled as long as you’re an employee.
After you’ve saved a hefty chunk over your lifetime, now comes the fun part. Spending it. As with most things in life, there’s a catch. Since pensions are meant for retirement, you can only access yours when you turn 55 with this rising to 57 from 2028. However, as a little savings sweetener you can normally withdraw 25% of your total pot completely tax-free when you reach this age. Whether you choose to treat yourself or top up your annual takings is entirely up to you. Just be aware that any amount taken after this will be taxed depending on how much you take out per year.
It’s all about finding the right balance for you. Maxing out your pension can potentially bring retirement closer but will reduce what you can do today. Figuring out which goals you want to prioritise is the first step in making the right retirement choice for you.
That’s not to say that you should stick to just one account type. By paying into your pension and putting excess money into separate accounts you can save towards multiple goals. Whilst LISAs might struggle to fund your entire retirement, the 25% government boost makes it a handy tool for your first home deposit with any leftovers going towards a retirement bonus. Even if Cash ISAs aren’t seen by most as a good place to stash your long term funds, they do offer a great amount of flexibility for any unexpected costs along the way.
What we’re really trying to say is that it’s never a one size fits all policy. Whilst saving for your retirement should be on your radar at the very least, having the right knowledge will make it less stressful when it’s decision time. Only you will know what feels right for your circumstances, and at RIFT, that’s exactly how we want you to feel.
Worryingly enough, it’s even possible to end up paying too much tax on your private pension. If you overpay tax on the actual income from it, your provider may simply pay you back. If not, you might get a P800 from HMRC to settle the books. If neither of those things happens, though, it’s time to call HMRC.
For lump sums, it all depends on whether we’re talking about a “defined benefit” or “defined contribution” scheme.
For defined benefit lump sums, you should get an automatic repayment if you’re on Self Assessment. If you’re not, you’ll need to send a P53 form to the taxman to square it all up.
For defined contribution schemes where you’ve used up your entire pension pot, you’ll find yourself using form P53Z or P50Z, depending on whether or not you’ve got any other taxable income. If there’s anything left in your pot, you’ll use form P50 to get your refund, as long as you’re not taking regular payments from your pension. If you are, we’re back to waiting for a P800 calculation from HMRC if your provider doesn’t refund you automatically.
For pensions you’ve inherited, believe it or not, the rules get even trickier. It might be worth talking to a tax expert if you don’t know where you stand.
Whenever you pay money into your pension, the government tops it up with an extra contribution based on the tax band you’re in. It’s like getting back the tax you paid on that portion of your earnings.
Your tax relief on pension contributions is paid automatically, and depends on the highest rate of tax you pay. While the same basic system is used across the UK, Scotland has slightly different tax brackets so they have their own rates and thresholds.
The pension tax relief you qualify for depends on the highest tax band you’re in. Basic rate taxpayers get tax relief of 20%, higher rate payers get 40% and people paying the additional rate get 45%.
In Scotland, the pension tax relief rates are:
Salary sacrifice is a system where an employee can agree to a lower salary in exchange for some other benefit. Examples of these benefits might include childcare vouchers or contributions to a pension scheme. When an employee chooses to use salary sacrifice, it can mean they end up paying less in Income Tax and National Insurance.
Salary sacrifice might not be such a great option for people earning lower incomes, since you’re not able to reduce your salary below the legal Minimum Wage.
With a few basic cosmetic options installed, now let’s look at mods that can make a real difference to your car:
Personal loans are your general, all-purpose deals where the lender doesn’t care all that much what you need the cash for. They’re useful for handling expensive one-off costs like improvements around your home or blow-out weddings. Depending on your situation and how much you’re borrowing, you’ll often find you don’t need to ‘secure’ your loan against big things like your house. You’ll still need to keep up your agreed repayments, though, and factor in the interest rate you’re ramping up. This kind of loan can take months or even years to pay off, so you really do have to keep both eyes open when you dive into one.
It might be difficult without but lets just double check you can't get hold of them ((P60, payslip last 3 months, passport, driving licence.). It will save you a lot of work if you set up a PTA. HMRC website is safe to use with sensitve info, help us get and accurate refund and accelerate the time to submit your refund claim.
We can absolutely still help you with your refund but this way will be much quicker, safer and reliable with the HMRC website, we've been doing this for over 25 years and this is 100% the best and easiest way.
Everyone is different but we've helped over 140,000 customers and the customers that do it this way find it much easier. It's a super safe platform on HMRC for sensetive info, be more reliable info and help our expert team get the most they can for you.
Its a Personal Tax Account. HMRC provides this for everyone, it will have all your info there and you can give limited access to our team to get info needed quickly and safely.
You don't have to but it will make things a bit harder for you, and we could end up with the wrong info. It will only give our Tax Specialist Team limited access through what they call an agent portal, and you'll still be able to remove us at any time for any reason.
We'll send you an email with a specific link for you to provide us with access, you'll just need to follow the steps on the HMRC website. Call us to find out more and get your link to a Personal Tax Account
This will just be one part of it, our Tax Specialist Team will assess your info and then submit a refund claim based on getting the most back for you, we also gaurentee the refund if all the info is correct, spend hours working directly with HMRC for you and make sure the money you're owed is back with you. We've succesfully claimed around £380m back in 25 years.
We can help you on the phone if you want, although it's a simple HMRC website. You'll just need to click the link we send to take you straight there and then follow the steps. Give it a try and just call us up if you need help.
Not everyone, but for 25 years we've tried to make things easy for customers and we appreciate this is really sensitive info so using a secure HMRC website is the best way. It's also super easy.
Just hit the link below to set up your personal tax account
One of the reasons it’s smart to start your saving earlier in life — especially if you’re looking to buy a home — is that it opens up the option of picking a longer-term mortgage deal. Spreading your repayments out over more years, while it means more interest overall, can still bring down your actual month-by-month costs by a lot. In fact, with the right mortgage, it can easily work out cheaper than renting. Obviously enough, you’ve still got to scrape together your deposit to get started, but once that’s out of the way the road ahead can turn out much less rocky.
Speaking of saving for a deposit...
Lifetime ISAs
A Lifetime ISA is a really strong way to save toward a deposit to lay down on your first home. If you qualify for one – basically meaning you’re between 18 and 39 years old – then you get a yearly pay-in limit of £4,000 and a 25% top-up on everything you save up to that limit. So, assuming you pay in the maximum in a year, the government will dump an extra grand into your savings pot.
As with other kinds of ISA, you’ve got a few choices about how your money is used. It’s possible that you could see the highest yearly growth in your savings with a stocks and shares LISA, for instance. However, when there’s a specific target to be saved toward, a lot of people lean toward the potentially less risky cash ISA option.
There’s one slight catch with LISAs that you need to be aware of, though. Most of the benefits disappear instantly if you need access to your money in a rush. If you take anything out before the age of 60 to use for anything other than buying a home, you get hit with a 25% penalty to pay. This basically wipes out all of the top-up payments you’ve received on that money. If you’re actually saving toward buying a house, then there’s no problem – unless you hit a bump in the road and need to cash out early.
Alcohol duty is the tax levied by HMRC on all alcoholic products such as beers, cider, wine and spirits.
Analysis by RIFT shows that total alcohol duty paid to HMRC climbed from £7.6m in 2003/04 to £12.1m in 2020/21 - a 60% increase. At the same time, alcohol duty as a proportion of all HMRC receipts during 2020/21 sat at 2.1%, the second highest level seen in the last two decades.
During the Autumn Budget 2020 and the height of the pandemic, the Government decided to freeze the rate of alcohol duty to hand the hospitality sector a lifeline, with a six month extension granted in December of last year and applicable from 1 February to 1 August 2023.
Following the freeze implemented in the 2020 Autumn Budget, total alcohol duty paid as a proportion of all HMRC receipts fell to 1.8% in 2021/22, the lowest annual proportions seen in the last 20 years. It then fell further, with alcohol duty accounting for just 1.6% of all HMRC receipts last year (2022/23).
As of today, 1st August, the freeze in alcohol duty will come to an end, meaning that the duty owed on many of our favourite beverages from the boozer will climb, further reducing the profit margin of the nation’s pubs who are likely to have little choice but to pass this price hike onto the consumer.
Fortified wines such as port (+£1.30) and sherry (+98p) are set to see the largest increase, climbing by 44% per bottle. A bottle of vodka is set to increase by 77 pence per bottle, while a bottle of wine is due to increase by 44 pence.
Bottles of beer (+3p) and cider (+2p) are also due to increase in cost but there is some good news for the nation’s pint lovers.
While the freeze on alcohol duty is set to end, pubs will see an increase in the value of Draught Relief from 5% to 9.2%, which will reduce the tax burden on draught beers and ciders under 8.5% ABV and in containers of at least 20 litres
However, further research by RIFT shows that while this means the duty owed on a pint will remain static, pubs are already being squeezed at the pump, taking just 45% of the price charged on a pint.
RIFT has broken down the price of a pint to highlight that even with the freeze on alcohol duty and Draught Relief, pints are far from profitable.
The breakdown shows that the average cost of a pint is currently £4.57. Before it even reaches the pump, £1.11 of this goes towards the brewery (79p) and the distributors (32p). A further 91 pence is paid in VAT, with 49 pence paid in alcohol duty.
In total, £2.51 is paid from a pint before the pub takes its remaining £2.06 share. However, this £2.06 isn’t pure profit, it also has to cover costs such as the rent on the premises, running costs such as energy bills and staff wages.
Previous research by RIFT found that some parts of Britain have seen as many as 69 local pubs close their doors in the past two years.
With the nation’s pubs already struggling to make ends meet due to high energy prices, the cost of living crisis, and dented consumer confidence as a result of the current economic landscape, there are fears that the increased cost of alcohol duty could cause more to shut their doors.
The analysis by RIFT shows that the propensity of hitting a pothole could be all the higher at present, as there’s been an 18% year on year drop in the number of potholes being filled by local authorities across England and Wales.
Last year (2022-23), just 1.4m potholes were eradicated from our roads and while this may seem like a lot, it’s 300,000 less than the 1.7m filled the year before and significantly less than the peak of 2.7m filled per year seen back in 2014-15.
As a result, the total sum spent on making our road surfaces acceptable totalled £93.7bn last year, a 13% cut on the money invested into tarmac the previous year. Why? With the average cost of filling a pothole climbing from £63.18 to £66.93 annually, the data suggests cost saving measures from local councils could be to blame.
So what’s the result of local authorities putting off their pothole maintenance? Well, research from Kwik Fit has found that in the last year alone, 13.3m cars were damaged due to potholes, with the average repair bill coming in at £127. That’s a total cost of almost £1.7bn to the nation's motorists.
According to the latest data, Northumberland is the nation’s pothole hotspot with 51,703, followed by Cornwall (24,836) and North Yorkshire (22,094).
However, on an annual basis, the London Borough of Hammersmith and Fulham has seen a 118% increase in the number of potholes posing a potential danger to motorists, followed by the neighbouring borough of Kensington and Chelsea which ranks second with a 107% increase.
Bracknell Forest in the South East ranks third nationally with an increase of 88%, with Nottingham (+75%) seeing the fourth largest increase nationally and the largest jump in the East Midlands.
Halton ranks sixth overall and has seen the largest pothole increase in the North West at 65%, while other areas to make the top 10 include Havering (+68%), Greenwich (+47%), Southampton (+47%), Lambeth (+47%) and Southwark (+45%).
Middlesbrough in the North East (+28%), Wiltshire in the South West (+16%), Central Bedfordshire in the East of England (+12%) also rank within the top 20.
Certainly, you can take steps to reduce the potential risks. However, there are situations where factors beyond your influence come into play. In such cases, you might have the opportunity to file a claim for any resulting damages.
Potholes can cause wheel cracks, damage and alignment issues, as well as problems with your suspension.
If you do hit a pot hole, you should: -
If your income’s under £17,500 and you need to claim back some tax on savings or PPI interest, you can use HMRC’s R40 form to get your money back. This will probably take around 6 weeks. For people with higher incomes, there are a couple of extra hoops to jump through. If you’re a basic rate taxpayer, you’re allowed to earn up to £1,000 before you owe any tax on it. For higher rate taxpayers, the threshold is £500. Either way, this is called your Personal Savings Allowance (PSA). If you’ve had tax taken from your interest without using up your PSA, you can use form R40 to claim it back.
You’re not limited to claiming back your overpaid tax from your current job, either. If your previous employer has already given you your final pay-out and you’re now working somewhere else, there’s not much to do. You’ll probably simply get your refund through your pay. If you already had your new job before you left your old one, then HMRC will settle up when they next check your tax code. Again, though, this all depends on them having all the information they need. If they don’t have the full picture, you’ll need to fill in the blanks for them.
A lot of people decide to go into business for themselves after leaving a PAYE job. If you find yourself on benefits like Jobseeker’s allowance or Employment and Support Allowance, you won’t be able to claim back any refund you’re owed straight away. If HMRC decides you’re owed anything back, you’ll get it either at the end of the tax year or when you start a new job.
If you’re not getting benefits, and you’ll be getting a workplace pension before the end of the tax year, once again you’ll get back anything you’re owed the next time your tax code is checked. Otherwise, you’ll have to make your claim yourself – either directly or through the Self Assessment system, depending on your situation. You can either hash this out with HMRC yourself or you can use RIFT. We've been claiming back overpaid tax for people like you since 1999. We know the rules like the back of our hand. The average 4-year tax rebate from RIFT is worth £3,000.
For anyone who’s left one PAYE job and is looking to start another within 4 weeks, tax problems can often be handled by just making sure your new employer has parts 2 and 3 of your P45 form. If you’re owed tax back from previous tax years, then you’ll either get a P800 form or RIFT can deal with it for you. Meaning all you have to think about is how you'll spend you refund.
A price comparison website’s basically just a very specialised kind of search engine. You plug in what you’re looking for, filter down the results and work your way through the list until you find what you need. You can narrow down your search by obvious things like the prices and features offered, or go for more of a personal touch by scouring review ratings to see what people actually think about the businesses you’re considering.
What’s great about price comparison sites is that they let you see a lot of choices all in the same place, potentially making finding what you’re looking for a lot simpler and faster. Depending on how you use them, though, you still might not walk away with the best deal – or even the actual product or service you needed.
Some of the main things people search through comparison sites for are energy suppliers and financial services like credit card and insurance providers. The range of prices, deals and special features available can be bewildering, so seeing direct, like-for-like comparisons can be a great help – assuming that’s that you’re actually getting.
The UK has a body called the Competition and Markets Authority (CMA), which is designed to make sure people get the full benefits of competition between businesses with similar offerings. They've found that price comparison sites are practically an essential tool for people looking to score the best deal on insurance or energy, or simply wanting to switch away from a bad supplier.
85% of all internet users in the country have used price comparison websites at least once, (CMA)
Our standard charges are:
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (still included in the cost) and if anything did go wrong (which it never has in 15 years) we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
Please do!
Not only will you be doing them a big favour if you can get some cash back in their pockets but we'll pay you a £50 referral reward for anyone who does go on to claim through us.
Until the 9th of October we'll also pay you an extra bonus of £150 if 5 people claim with us (T&Cs apply)
If you tell them to apply now they'll get their tax refund in time for Christmas and you'll get something extra to stuff in your stocking. That could be £400 in your pocket as well as the warm glow you get from helping out your mates.
To get started:
Not sure which friends could claim? Find out more about who can claim tax refunds.
There's no limit to the number of people you can refer and we pay out the rewards every week. It could be a nice little extra in your pocket, as well as the lovely warm feeling you get from knowing you helped out a mate.
Find out more about the referral scheme.
Our standard charges are:
Don't worry if you had a mixture of self-employed and PAYE (employed by a company) work during the period you want to claim for. We can work out if you would be due a refund and let you know what the fee would be.
See our full list of services with prices and options.
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (which is included free of charge) and if they did demand any money back, we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
If you’re ready to invest your time, there’s serious money to be made from these pro-level options. The good news? You still don’t have to invest in any expensive equipment - at least not at the start.
Starting a successful Youtube channel is not as complex as you might think and you don’t even need to be on camera yourself - you could take photos with your phone and narrate using your webcam’s microphone. Plenty of popular channels even do perfectly well with a stock video subscription. Where there’s time invested, there’s a greater return. And you’re now in the territory of no longer trading your time for money. While time does go into creating the video, that video can stay on Youtube for as long as you like, so it can pay you back again and again in ad revenue and sponsorships - ONCE you’ve got yourself a loyal audience. It’s likely going to take months or years to get there - but it’s totally doable. And it requires no extra equipment to start with.
Podcasts are another option if you’re not sold on having your face on camera. There are podcast studios you can rent out by the hour in many cities - they can cost just £15 an hour to rent out, with all equipment included. But there’s no reason you can’t start out using your laptop mic and some free software. If you’ve got a Mac, for example, GarageBand will do the job nicely.
You can post your podcast episodes in multiple places - like Spotify and Soundcloud. So there’s potential to have a fairly wide reach on multiple platforms. Much has been made of platforms like Spotify paying music artists fractions of pennies per stream. But that’s not necessarily the case for podcasts. Your content is your own - musicians can’t easily put adverts and endorsements in their songs, but you can put them in your podcast episodes!
So you’ll get paid by the platform for your steams, AND can charge advertisers to be featured in the content of your show. It could be a simple shout-out, or could be a review of their product they pay you for. Again, you’ll need to invest your time into growing an audience before the ad money starts rolling in. But like a Youtube video, your podcast episodes can, in theory, pay you back forever.
Do you like gaming? Why not start a Twitch channel? Twitch’s revenue system is a little different to Youtube, Spotify, and co. Instead of just giving you a cut of the ad revenue your content generates, Twitch users pay you directly for the content they like. They purchase credits and can give them to content creators as rewards. So with Twitch, it’s actually possible to make decent money without huge audience numbers. As long as you find an audience who likes what you do, they can reward you directly.
You don’t have to be JK Rowling to write a book that will make you some cash. Sure, it would be great to get a novel on the New York Times bestseller list. But writing how-to guides and self-publishing can be just as lucrative. Again, it’s all about finding your niche. Maybe you know loads about a particular type of car? Or maybe you’re an expert in native birdsong? The point is, you don’t have to write the next Twilight saga. Just write about what you know. Find the right self-publishing platform, and get the word out to people you think will like it. Social media is a great place to start.
This is probably the most traditional route into property investment. You buy a secondary property, rent it out to tenants over a long period of time, using the rent to pay for the mortgage or recoup the cost of the property.
Unless you’re already sitting on a chunk of money to buy the property outright, you’ll need to take out a specific buy-to-let mortgage. These differ from your standard residential mortgage in a couple of ways. Firstly, the minimum 5% deposit for a residential property often rises to 25% for a buy-to-let. Monthly payments are also often higher so you’ll need to crunch your numbers to make sure your bottom line isn’t affected.
With the stamp duty holiday now over in the UK (at time of writing March 2022), an additional fee must be paid on top of your initial deposit which is currently 3% of the total value in most cases.
Once you’ve got your property you’ll officially gain the status of landlord. With this comes extra legal obligations such as ensuring a safe environment to your tenants. If you prefer a hands-off approach you can hire a property manager for an additional cost. If you consider yourself handy with DIY, now’s the best time to polish up on your skills to prevent any bumps further down the road. It's also worth noting that once you become a landlord you'll also need to submit a self-assessment tax return each year too.
Due to government measures, buy-to-lets have less profitable punch when compared to the past. Although the first £1,000 of your property’s rent is tax-free, higher and additional tax rate payers feel the pinch the most when it comes to profit. Previously, landlords could deduct mortgage interest payments from their rental income. Today’s landlords can only take advantage of a 20% tax credit on their interest. This means that if you currently pay 40% or 45% tax on your salary, you’ll be paying more for your property’s income.
It is possible to set up a limited company to include these mortgage interest payments within, however if you’re new to property investment, it may be a good idea to seek professional advice.
Acting as the halfway house to house renovation, pre-renovating is all about putting in the hard labour for potential buyers.
Imagine that a family has just inherited a fully-furnished house that hasn’t been looked after and is in need of a full decoration. They list this property under market value at £130,000 with average house prices in the same area valued at £160,000. After stripping the property to its bare-bones and tidying up the garden, you’re now able to sell the property for £140,000 thanks to a bit of elbow grease.
Unlike a full renovation, your aim isn’t to transform the entire house. Instead, the most used method is to buy a property that’s generally looking worse for wear, tidying it up with some simple cosmetics, before selling it on again for a quick profit to renovators or movers looking for a DIY project.
The main challenge with this method is that it takes a particular type of house in order to reap the profits. You must be able to identify the fine line between an unpolished gem and a house that’s barely worth its bricks. Knowing the area will help you roughly gauge how much margin you have upon the completion of your work. Doing your research before purchase can help lessen this risk.
Stamp duty, and solicitor fees are other things to think about as they can also eat into your profit. Ensuring these are all calculated beforehand will put you in good stead before getting your hands dirty. The best case scenario is to line-up a buyer beforehand so that you can avoid estate agent fees and ensure a speedy transaction upon completion.
In comparison to pre-renovating, renovating sees larger scale works done to improve the appeal of a home. This method can be quite pricey and requires a bit of property know-how to get the best returns. As well as buying the house itself, an additional budget is needed to redesign certain aspects that will bring it to the top of a buyer’s wishlist. If you’re in need of some motivation, Hamptons estate agents found out that renovators made £48,190 on average per home during the pandemic.
When looking for a property, popping into an auction may be your best bet if estate agents aren’t quite cutting it. Although there will be bargains, be mindful of bidding wars. Thinking in the eyes of the buyer will pay dividends when you come to selling the property. Follow Kirstie and Phil’s advice of location, location, location. Even the best renovations won’t attract buyers to an undesirable part of town.
It is worth noting that the stamp duty holiday has now ended, meaning that you’ll now have to pay an additional cost depending on the purchase price. By keeping your friends close and tradesmen closer, you can lower labour and material costs that often turn out to be more than expected. Picking where to put your money is a big part of the job. Statement pieces such as a new kitchen can add somewhere between £20,000 and £30,000 to a house’s value. Loft conversions rack up even more profit, adding up to £100,000 if you manage to fit a bedroom and en-suite in there.
The foundations of any good renovation is to buy ahead of the curve in an up-and-coming location. As a general rule, you don’t want to spend any more than 70% of the renovated asking price after costs are deducted. This way you’ll make your budget work harder and ensure a tasty chunk of profit at the end.
A Real Estate Investment Trust (REIT) is when you put money into shares of a company who invest in property. Although you won’t own the property itself, you will own a stake of the company who does, allowing you to make income without the substantial startup costs.
As REITs are required by law to pay at least 90% of their income each year as dividends, the success and profit levels of the trust will determine how much money you receive in return. The more you invest into a REIT, the greater your dividends will be. As with all stocks, the price can fluctuate over time. Although property isn’t seen as high risk as other markets, it’s important to understand that your investment can still fall or rise in value.
To get started in the REIT direction, all you need to do is invest through an ISA or a SIPP since these companies are listed on the London Stock Exchange. If you’re unsure on the differences between the two account types you may want to read our article on them here.
Similar in a way to REITs, property crowdfunding is when fellow investors get together to put money into property. However, rather than buying shares of a company, you are actually buying a small share in a property. What makes this method attractive is that you can kickstart your property investment journey for a fraction of the cost when compared to other routes.
As there are different types of property crowdfunding, we’ll stick with the most common form. Through a crowdfunding platform you invest anywhere from £100 to £1,000 into a property. You then earn money through the property being let to tenants and the rent is divided according to each investor’s share.
As you’ll technically be in the business of renting, your risks are the same as a landlord, only at a much smaller scale. Your property’s value may fall or there may be times when your property sits vacant, meaning no income is gathered at all.
Performance is very hard to predict even if platforms will estimate how much will be returned. Depending on the platform, you’ll either be paid monthly, quarterly, or annually so it might not be best for those looking for a reliable income. It’s worth keeping an eye out for platform management and managing agent fees who will take a percentage of the total income. You may find cheaper rates on some platforms but be careful to limit your risk if they do not have a good reputation.
We talk about this a lot, but it’s almost always better to pay down your debts before you stack up your savings. Most of the time, it’s simple maths. Your debts will almost always grow faster, leaving you worse off over time. When you’re looking to buy or rent a new home, though, it’s even more vital to lighten the load of the debts you’re carrying. Lenders and landlords alike will want to check out how you handle your finances before they decide whether or not you’re a good bet. Paying off credit card balances (straight away, if possible) can do a lot to prove you can be trusted with money. A bad credit rating will, at the very least, make the process of sealing your rental or mortgage deal slower and more difficult. Worse still, it can severely slim down the range of landlords who’ll rent to you.
To put it simply, an emergency fund is a pot of easily-accessible cash that covers you against any unexpected costs. The benefit of having one is that you can dip into it at any time. It can also prevent you from falling into debt without a way of paying it back.
A recent study from the housing and homeless society Shelter revealed that one in seven adults in England - equivalent to over six million people - are worried about becoming homeless because of recent events. It was also found that 20% of renting parents were taking on debt to help pay housing costs.
Although we don’t like to imagine the worst-case scenario, it’s worth asking yourself what would you do if your boiler broke or you lost your job tomorrow. If living paycheque to paycheque, a sudden cost like a broken boiler could easily throw you into debt. It might be a scary thought but this is why an emergency fund is so important.
If you did have a big bill come your way but had a pile of cash put to one side, you could simply borrow from this pot and build it back up over time. And most importantly, you wouldn’t have to pay any interest, unlike a loan.
Figuring out where to save your money can be just as important as how much you save. As you’re theoretically saving for a cost that’s coming tomorrow, you’ll need to keep your savings in a place that’s easily accessible. Although you may technically have the money to cover the costs in other accounts or investments, some may take weeks, months or even years to withdraw from. By this time, you may receive a missed payment on your account and damage your credit score. This might limit your options when lending in the future. For this reason, Instant or Easy Access Saving Accounts are seen as the best place to keep emergency funds.
We all have a certain tolerance for risk. However, when it comes to keeping a roof over your head the stakes are much higher. When it comes to how much you need to save, most people will say you need between 3 to 9 months of expenses. Note how we said expenses and not outgoings.
In the absolute worst-case scenario of losing your job overnight, it’s possible to limit your spending to just your essentials. This is where budgeting comes in handy. Something you can learn about in our How to Budget Money for Absolute Beginners video. Click the play button below.
To work out your basic expenses you’ll need to sit down and add up all of the following:
Once this is all added up, you now have the figure for one month’s expenses. As an example, if your expenses were £1,000 a month and aimed for a 6-month emergency fund, your target would be £6,000. If you have a high amount of credit card debt, it may be worth trying to reduce this before trying to build your emergency fund. High-interest rates can soon make paying this back extremely difficult and counteract any savings you make. When choosing how many months to aim for depends on your circumstances.
As you’re planning for the worst-case scenario, you may find it equally easy or difficult to find a new job. The more months you can afford without a steady income, the more security you have. If in doubt, always err on the side of caution. The last thing you’ll want is to run out of money and still be without an income.
And remember, building up an emergency fund will be easier for some than it will be for others. Certain methods of saving are best suited for different individuals and their circumstances. So if ever in doubt, speak to a financial advisor.
Preparation is the key here. Ideally, once you’ve committed any cash to your “house fund”, you want it to stay saved. That means no dipping into it any time an unexpected, unrelated expense crops up, like a car breakdown or a redundancy. You can’t control or foresee everything that might happen in the next 5 years, but you can take steps early on to help protect your savings. For starters, set aside enough extra cash for one-off emergencies so they don’t get in the way of your real goals. This might mean you have to start your house saving a little slower or a little later, but you’ll be better protected overall and it’ll help you keep your eyes on the real prize.
Keeping track of your claim is simple with the RIFT App and your MyRIFT account. Wherever you are, you’ll always know at a glance what’s happening with your refund. If any extra information’s needed, you’ll be able to upload it directly to make sure there are no delays down the road.
Whether your course or assignment lasted for a single week or 2 long years, it will still count as a “temporary workplace” in HMRC’s eyes.
That means you may qualify for a tax refund for costs like essential travel.
The amount you can claim, naturally, will depend on how far and how often you travelled in a tax year.
If you’re part of the Armed Forces community, you can claim back tax for your travel expenses for training or temporary postings of 24 months or less.
If you’ve paid too much tax in the last 4 years, whether you’ve been travelling in your own vehicle or by public transport, you could have a tax rebate claim worth over £3,000 on average.
There are other military expenses you can claim for, too - and you can even get a refund if you’ve been posted overseas
No. You make a tax refund claim for the eligible costs you run up in a tax year (from the 6th of April to the following 5th of April). If you attended a course from July in one year to June the next, for example, your refund claim would cover the period from July to April.
To qualify for a tax refund, you need to be covering the costs of your own travel - paying fuel costs for your own vehicle or ticket costs for public transport (including things like rail and air travel). If you’ve received a travel warrant for a journey, for instance, you couldn’t include that in your claim since you didn’t pay the travel cost yourself.
Yes, absolutely! Travel is usually the single biggest part of a tax refund claim, but other eligible costs can include things like Mess Dress and food or accommodation bills when you’re travelling to temporary workplaces or training locations.
To get the most from an Armed Forces tax refund, you need to claim for more than just travel costs to temporary postings. Military tax refund claims can also include things like:
Yes — and confusion over this leads to many Armed Forces personnel missing out on their mileage claims! The GYH, HTD and MMA rates are lower than those set by HMRC, so you can claim back the difference as a tax refund if you have qualifying expenses.
With RIFT, even complicated Armed Forces tax refunds are simple and hassle-free. Our specialist teams are experts in military money and travel, and take care of all the hard work and heavy lifting of claiming your refunds.
Here’s the basic paperwork it takes to get back everything HMRC owes you:
With the basics sorted, we’ll ask you a couple of simple questions about your money situation. HMRC will want to know about any other cash you’ve got coming in, for example, or whether you’re paying off a Student Loan or have a private pension.
There are specific rules about your accommodation that affect the military refund you’re owed, so talk us through your living arrangements, too. We’ll help you set up a Personal Tax Account, if you don’t already have one. It’s free, and means you can see all your important tax, employer and other information in one place.
To keep everything simple, we’ll set you up with a MyRIFT account as well. With MyRIFT, you can track your claim and update all the important details from anywhere in the world. Keeping your information up-to-date is essential, so MyRIFT puts you in the driving seat and on the fast track.
HMRC will expect your refund claim to be backed up with evidence of the costs you’re claiming for. A lot of the essential information will come from your payslips and similar documents, so you may not need a lot of extra paperwork.
A RIFT tax specialist will talk you through the kinds of evidence you’ll need. We can also help you replace or track down documents, evidence and paperwork if you no longer have it.
HMRC’s going to want to see a thorough breakdown of your travel costs before coughing up your refund. Your wage slips show whether you've already received any expenses toward your travel.
Since you’re only owed a refund on costs you’ve actually paid out yourself, any expenses you’ve received will bring down what you’re owed by HMRC. If you’ve received nothing toward your travel, your wage slips will prove this.
Don’t stress out too much if you don’t have these to hand. You can download your wage slips from the JPAC website and RIFT can get your P60s straight from HMRC for you.
Yes, definitely! These are very important documents and the cornerstone evidence for putting your tax refund claim together. Try to keep a copy of your Assignment Orders for every base you’ve travelled to. If you’ve got gaps in your record, you can print your orders off from JPA as long as you do it within 60 days.
MyRIFT keeps everything simple and fast. You can upload important documents and track your claim’s progress from anywhere in the world. If you don’t have every last scrap of information, MyRIFT can even help track down details of your drafts so you never miss out on the refunds you’re owed.
Of course – and you really should, whether you’re still in the Armed Forces or not. Your essential work expenses might vary from year to year, but as long as you’re reaching into your own pocket for essential costs like travel to temporary postings, you’re still owed some tax back.
Better yet, your next year’s claim with RIFT will be even easier than your first. We’ll already have most of the information we’ll need to get your money back from HMRC. You can claim back what you’re owed for up to 4 years, whether you’re still in the Armed Forces or not.
If you’ve moved into civilian work and still travel to temporary workplaces, RIFT can keep getting your refund cash back for you. If you’ve decided to become self-employed instead, we can even take care of your Self Assessment paperwork, keeping your tax bill down and making sure you stay in HMRC’s good books.
Sometimes, HMRC will change your tax code after you’ve made a tax refund claim.
They do this on the assumption that the costs you claim tax relief for won’t change year-on-year. However, if your costs do change, this means you can end up on the wrong tax code. RIFT works with HMRC to make sure your tax code is always correct, including regular automated checks.
If you do notice an unexpected change in either your tax code itself or your wages, or if HMRC sends you a notification of a change directly, get in touch with us immediately. If there’s a problem or an error, we’ll get it fixed.
Depending on your situation and the information you’ve provided in your refund claim, you might be asked to file a tax return the following year. If so, RIFT can help.
You can read the letter DIN '2015DIN01-005' the MOD sent us for assurance that Armed Forces tax refunds are 100% legit and allowed.
Once we’ve got all the information and we are your tax agent, we will calculate your refund. If you are eligible, we put our money where our mouth is and start paying out. We’ve worked out exactly what you’re owed, so why wait weeks longer for HMRC to get up to speed?
We built the service because our customers told us they wanted a faster way to get their refunds. No more putting your holiday or spending plans on hold while your claim makes its way through HMRC’s systems. You’ve earned it, so why wait for it?
None at all! Whatever your refund comes to, we’ll pay the first half 1 working day after you’ve confirmed the total we calculated, with the rest coming once HMRC confirms and pays out your claim.
You’ll normally get your first 50% pay-out within one working day of telling us you accept our calculation between Monday and Thursday. If you confirm after 2pm on a Friday, you’ll get your cash on Monday.
Rapid Refund costs an extra 7% plus VAT, on top of our normal fee for PAYE tax refunds.
For CIS refunds, it’s a flat fee of £345 plus VAT.
Once you’ve confirmed that you’re choosing Rapid Refund, we’ll call you within 24 hours to guide you through the process. You can upload your documents in MyRIFT or email them to us.
As we’ve calculated your refund and you are eligible for the offer, we put our money where our mouth is and start paying out. We’ve worked out exactly what you’re owed, so why wait weeks longer for HMRC to get up to speed.
Yes, we have just re-vamped the name from RIFT FastPay to Rapid Refund.
None at all! Whatever your refund comes to, we’ll pay the first half 1 working day after you’ve confirmed the total we calculated, with the rest coming once HMRC confirms and pays out your claim.
You’ll normally get your first 50% pay-out within 24 hours of telling us you accept our calculation between Monday and Thursday. If you confirm after 2pm on a Friday, you’ll get your cash on Monday.
Rapid Refund costs an extra 7% plus VAT, on top of our normal fee for PAYE tax refunds.
For CIS refunds, it’s a flat fee of £345 plus VAT.
Your Personal Tax Specialist will let you know once they have calculated your refund.
The paperwork your tax refund claim requires depends on what you're claiming. For flat rate uniform tax rebates, most people won't need to keep anything specific. HMRC's flat rates don't require a lot of bookkeeping to claim. You do still have to know roughly what you spent in a year, though. If it's costing you significantly more than HMRC's estimates, then good records will help you prove it. Keeping paperwork and breaking down all your expenses in a tax refund claim can be much more complicated than using HMRC’s flat rates, but it could be your best bet if the taxman’s guesswork is wide of the mark.
Maybe you’re lucky and your new home’s absolutely perfect for you. That’s great – but the rest of us will at least want to get a bit of redecorating done. Adding your own personal flair is what makes the difference between a house and a home, and it all costs money. Once again, this is something you can handle on your own if you’ve got the tools and the talent. If not, though, you’ll be looking at additional costs to call in the professionals. Even if you’re going full-on DIY, you’ll need to splash out on paint, brushes, ground sheets and so on.
The way you save money affects Inheritance Tax. Savings accounts and ISAs are fully taxed above the threshold. However, pensions under trust schemes are often exempt, but without trust, the exemption may not apply unless the beneficiary is a spouse or civil partner. Seek an Independent Financial Adviser for clarity.
In England and Wales, you might be able to take advantage of the Equity Loan system. You’ll have a few hoops to jump through and qualifications to hit, but it could be a big help. First off, you need to be a first-time buyer, with the place you’re buying being the only property you own and live in. To get the loan you’ll also need to pay at least a 5% deposit, plus the property has to be a new build from a homebuilder registered with the government’s Help to Buy scheme. On top of all that, you’ll need to arrange a repayment mortgage for a minimum of 25% of asking price. The maximum price of the property you’re buying through the Equity Loan system depends on where you’re looking. You can get the full details on the Gov.uk website. The loan can cover up to 40% of the asking price if it’s in London, or from 5% to 20% otherwise.
Obviously, this is a potentially great deal for first-timers looking to get a foot on the property ladder. It more or less eliminates your deposit worries, and you won’t pay interest on the loan in the first 5 years. After that, though, the interest does start to kick in, with the rate rising yearly by 1% more than the rate of inflation. Depending on how high inflation goes, you could find yourself paying a lot more than you expected overall, for instance, and rising interest rates could even end up costing you more than you can safely afford.
Meanwhile, changes in the actual value of the property can shift your position quite a lot. If it goes up, for instance, you’ll find yourself repaying more than the loan you initially took out. If it goes down, you could find yourself with “negative equity”, where the value of the property is actually lower than the amount you have left to pay off on the mortgage.
Another option to look at is the shared ownership system. Basically, if you can’t afford the pay a deposit up-front and mortgage payments later, you can arrange to buy a share of the property instead of the whole thing. You can buy between 10% and 75% of the property, based on its market value, and pay rent to a landlord on the rest of it. There’ll usually be a monthly ground rent charge, and service charges to go toward the property’s upkeep. You can get a mortgage for this if you don’t have the money to buy your share outright. The good thing about this is that it can bring your deposit way down, since it’ll only be based on the percentage of the property you’re actually buying. Deposits of 5%-10% of your share are fairly typical. Once you’ve got a shared ownership deal set up, you can actually start increasing your stake in the property by “staircasing”. This basically just means gradually buying more of the property until the whole thing’s yours.
Shared ownership deals can be a great way to minimise start-up costs for first-time homebuyers. You’ve still got to make sure you can keep up with the rent and mortgage payments, though. Since you’ll still count as a tenant in the property, missing rent payments can still cause problems up to and including actual eviction. The same goes for things like complaints from neighbours or breaking any rules and conditions. Also, since shared ownership deals are usually leaseholds, it can be tricky to sell up if you’re on a short lease.
Nice and simple, this one. If you find you’ve overpaid tax because of a redundancy payment, you can simply call HMRC to arrange a refund. Depending on the situation, you might be able to get your money before the end of the tax year. Job done!
You’ll get your redundancy pay tax-free up to £30,000. After that, HMRC will start hacking some off in Income Tax (but not National Insurance). Whatever’s left after that will come as a lump sum payment. If you’re owed any holiday pay or pay in lieu of notice, though, that’ll all be taxed as normal.
As a quick note, because it does catch people out sometimes, just because your redundancy pay’s free of tax up to £30,000, that doesn't mean the taxman’s not interested in it. You’ll still have to report it as income to HMRC. There’s a special section in the standard tax return paperwork that covers this.
Okay, you’ve dealt with what you owe. Now let’s talk about getting what you’re owed. Remember, dealing with redundancy is about more than just keeping on top of your bills. It’s easy to lose your motivation along with your job – but try to remember that it’s the job itself that’s actually being made redundant, not you. We know, it sounds like we’re trying to sugar-coat it, but it’s the literal truth – and the law recognises it. That means you’ve got a surprising number of redundancy rights to fall back on. Such as:
Now’s the time to look through your contract to see what you’re entitled to. That starts with a fair selection process for which jobs are made redundant. It’s not enough, for instance, to pick the ‘winners and losers’ on a simple last-in-first-out basis. A business needs to make sure that no particular group of its employees is getting unfairly disadvantaged. You also shouldn’t be simply presented with your employer’s decision as if there were no other way. They have to show that they’ve looked into the alternatives before leaping straight to the redundancy option. Now, these other options might include a range of unappealing moves, like reducing the benefits, hours or pay of the workforce, but it’s an employer’s job to look into this stuff before simply declaring redundancies.
For one thing, you’re supposed to get some kind of consultation to discuss the situation. Beyond that, your rights should include a reasonable notice period and a certain amount of redundancy pay. Depending on the situation, you may also be offered an alternative job in the same company, and almost certainly some time off for you to look for another position. If your employer doesn’t toe the line with these rules, you might have a claim for unfair dismissal to make, or be entitled to compensation if you didn’t get an adequate consultation.
So let’s see what these kinds of rights look like in practice. When the law says the selection process needs to be fair, it’s talking about protecting you from discrimination based on things like age, gender, disability or pregnancy. If you’re picked for redundancy on the basis of your qualifications, performance or disciplinary record, for instance, then you were probably fair game. Anything else might be a reason to kick up a fuss, though.
These break down into two basic types:
If your employer has fewer than 20 people on staff, then you should get an individual consultation – and it ought to be held within a reasonable time. With 20-99 employees, the business will do the consultation on more of a ‘group’ basis. In that case, they’ll probably deal with an elected employee or union representative, assuming one’s available. Failing that, they’ll do it all individually instead. Either way, it needs to be done at least 30 days before anyone gets laid off. Companies with 100 or more workers on their books need to do collective consultations at least 45 days ahead of the first redundancy.
If you’ve had a tax refund yourself, you’ll know how it all works and that there really is money waiting at HMRC for people to claim it back. As you know, far too many people are still missing out on the tax refunds they're owed, and a quick word from a workmate can make all the difference.
You can tell them about RIFT and how to get in touch with us, but if you use RIFT's Refer a Friend scheme you can even make yourself a little extra money, just for spreading the word. You don't even need to have a claim of your own this year to start earning!
The quickest way to refer your friends is by using our online form.
You can also phone, email, FB, Livechat us with your friends email address or mobile number so we can send them an invitation to see if they are due a refund.
Whether you're the new rookie on the job or the grizzled veteran 2 days from retirement, it's good to have buddies to rely on.
The scheme's very simple. Just fill out our referral form with your friend's details (name and mobile number or email address) and we'll handle the rest.
We’ll send them a one-off email or SMS to let them know they might have a refund claim with a link to our online form where they can check for free.
Remember to give them a nudge afterwards to make sure they are contacting us with your reference.
If they do make a refund through us, we'll send you a £50 thank-you bonus. There’s not limit to how many people you can send our way and you’ll get a reward for every one who claims. Every time 5 people you refer to us have claimed, you'll get an extra £150 on top!
87% of people referred to us do turn out to be owed money, so that could be a lot of extra cash in their pockets – and yours!
Absolutely! Tell them the RIFT reference number we gave you, so they can quote it to us when they get in touch. That way, you can be sure you'll get the credit – and the cash – when they make their claim.
If they forget your number, don't worry. If they can tell us your name and your postcode, mobile or email address then we should be able to see that it was you who sent them our way and make sure that you get paid if they claim. The number just makes it a little easier to be sure we're giving credit where it's due.
Using the refer a friend form means they get sent a link that includes your reference number so there’s never an issue with that.
We also have RIFT representatives visiting construction sites up and down the UK. When they're around, just get your friends to collar them in the canteen. They should be able to say on the spot whether there's a good chance they're owed money by HMRC. They'll explain how it all works and get things started. Again, if they let us know that you referred them, you'll get the bonus cash.
If you were helped by a RIFT representative yourself, of course you could always just give them your friends' contact details directly. If you can't find one to talk to in person, you and your workmates can also find us on Facebook, and Twitter. Feel free to keep getting the word out by sharing our posts and tagging your friends to let them know they could have a refund claim.
We pay your referral rewards once the person you referred has made a successful claim with us.
The first thing to do is check with your friend if they got in touch and started a claim with us. If they didn’t, you can always encourage them to get started.
It might be that the person you referred either wasn’t owed anything by HMRC this year, decided not to use RIFT, had already been referred by someone else or didn’t use your reference number when they first got in touch with us.
If they’ve started their claim, that’s great news for you both as they’ll be getting a refund and you’ll be getting your reward. As you’ll know from your own claim, the process takes around 10 weeks after they first get in touch with us to getting their refund paid. As soon as they get that refund, though, you’ll get your payment.
If they did use the link we sent them, and they’ve had their refund payment but you haven’t got your reward then please get in touch with us right away.
Anyone who uses their own vehicle or public transport to travel to temporary workplaces or Armed Forces postings (temporary counts as 24 months) may be due a tax refund.
You can refer anyone to us that you think we can help. With 1 in 3 UK taxpayers paying too much tax, and over 87% of people who are referred to us being due a refund, there’s a good chance that people you know are missing out on money that could really make a difference.
Absolutely, please pass our details to anyone you think we can help.
You can check in our RIFT App or ask your friend if they got in touch and started a claim with us. If they didn't you, you can always encourage them to get started.
Referrers are entered into the Bronze, Silver or Gold categories based on the number of £50 payments they have received within the last year, on the end date of the promotion.
Referrers can only be entered into one of Bronze/Silver/Gold categories when the prizes are drawn at the end of each promotion, regardless of how many referrals they make or payments they receive. It is possible for referrers to move between categories during a promotion, e.g. from Bronze to Silver, if they receive further £50 payments before the campaign end date.
There is currently 1 cash prize draw for each category, with the amount that can be won being £150 for Bronze, £300 for Silver and £500 for Gold.
To enter the Star Prize draw, the referrer needs to make a referral between the current promotion dates and the actual or potential claim must still be “live” at the end of the promotion – i.e. filed or actively engaging.
Anyone who makes a referral that starts a claim with us during the promotional period is in with a chance to win a RIFT Magic Moment.
Although referrers can only be entered into one of the Bronze, Silver and Gold categories, they can be entered into one of them plus the Star Prize draw if they make a referral during the current promotion. It is possible that a referrer could win the Star Prize (if there is one) and a cash prize from Bronze, Silver or Gold.
Please see full Terms and Conditions for all of the details.
Yes! There’s no upper limit to what you could earn by referring your mates, colleagues and family to RIFT. You’ll get a £100 reward for each person who goes on to claim their refund with RIFT, plus another £150 for each 5 people you referred.
If they’re paying from their own pockets for work travel or other essential expenses, then the odds are good that they’re owed money. In fact, 87% of people referred to RIFT find out they’re owed tax back from HMRC.
When you refer someone to RIFT, we send them a one-off email with a link in it. When they click that link, we’ll know automatically it was you who referred them. If they decide to phone us instead to check if they’re owed tax back, remind them to tell us who referred them so we can get you your rewards.
Magic Moment prizes are based on the kind of things RIFT customers tell us they’d love to win. Here are a few examples:
For a limited time only we're offering £100 for every friend you recommend who successfully claims with us.
For any referral from an eligible referrer on or between 1st September 2024 and 30th November 2024, we will increase the amount paid per successful referral (one that results in a tax refund claim being filed with H M Revenue & Customs) to £100.
Of course, you’re not necessarily getting rid of your vehicle altogether. Maybe you’re just taking it off the road for a while. Perhaps you’re going to be out of the country for a while, for instance. Even so, you could still be able to claim back some of the tax you’ve paid for it.
Declaring a vehicle off-road means you can claim back the tax you’ve paid for any full months when you won’t be using it. Again, you’ll need to talk to the DVLA to get this done. It all starts with a Statutory Off Road Notification (SORN). You can handle this bit of bookkeeping either online, over the phone of through the post. Either way, you should get an automatic refund of tax for the months the vehicle won’t be used. If not, you should kick up some noise at the DVLA until they sort it out. All being well, it usually takes about 6 weeks to get your mileage refund cheque through your door.
For pretty much anyone, struggles with money in the past can mould the way we think about our finances. Those influences aren’t always on the surface, though, so it’s worth putting some thought into your whole attitude toward your cash. Ask yourself a few simple questions and see if the answers shed any light on your problems. For example, are there any particular times when you seem to spend more than you can really afford? On the other hand, are there specific times when you tend to have more cash on hand to save? If you can spot a pattern, you can use that information to plan ahead and get a firmer grip on your finances.
Now for the tougher questions: how does splashing out actually make you feel? How about saving? When you think about money in general, what kind of emotions does it stir up? Is there anything in particular about handling your finances that feels stressful or depressing? If it’s helpful, try keeping notes about your spending and how you feel about it, both before and after. These can be pretty challenging questions for anyone to answer, but understanding the push and pull between your money and your mental health is a big step toward building better habits for both.
If you have to relocate for training, remember it's not just the your basic travel costs that matter. Removal expenses, legal fees, subsistence and even the replacement of some domestic goods can all earn you some tax relief. If you're being reimbursed for any of these things, whatever your employer chips in is tax-exempt up to £8,000. As always, keeping good records is the key to making the most of your claim.
Training and education expenses can be tricky in healthcare tax refund claims. The basic rules still apply, so any courses need to be essential for your work to qualify for tax relief. Again, we're talking about more than just your basic fees here. Money spent travelling to a qualifying course or training session can also count toward your claim, for example. This is another area where it's worth talking to a professional. Even if the training's compulsory, its costs still may not qualify for tax relief. For instance, training in preparation for taking up a particular position isn't the same actually performing that role's duties in the taxman's eyes.
Home-buying costs don’t stop mounting up the moment the ink’s dried on your contract. Even once the property’s yours, you’ll still have bills to pay. With removals costs, what you’re paying to move in has very little to do with your new home. Instead, it’s all about how much stuff you’re bringing from your old one. The more you’re shifting, the more you’ll be charged.
If you’re up to it, it’s perfectly possible to take care of the removals yourself, but you’ll still be footing the bill for van hire and fuel – not to mention the time it all takes. Weigh up your options either way and plan ahead.
Saving to rent and saving to buy are two very different goals, and need different approaches. If you’re renting, for instance, you’re probably going to have a slightly easier time with the set-up costs you’ll be facing. You’ll still need to front up a deposit, though – but at least it’ll probably be capped at a maximum of 5 weeks’ rent. You’ll also have fees to pay for letting agents and any reference checks you’ve had to go through.
If you’re buying your new home, you’re looking at a serious chunk of cash for your deposit – typically at least 5% of the asking price, and often as much as 20%. Depending on the property, your first home could easily cost you a deposit of anywhere from £5,000 to £40,000. Along with that, you’ll have to consider all the standard fees, from solicitor bills to Stamp Duty (we’ve got a guide about that, too. Check out “Property Tax and How to Budget For Stamp Duty”).
Either way, you’ll also have to add on the cost of actually moving your stuff to your new place. That alone can load hundreds of extra pounds onto your up-front expenses.
Your Capital Gains Tax liability is determined by your overall gains in a tax year. Losses offset gains, reducing the tax owed. The annual tax-free allowance doesn't carry over, but losses can offset future gains. Even if you owe no tax, report losses to HMRC, as they can offset future gains. Standard Self Assessment tax returns cover most gains, but property gains require a separate return. Timely reporting is crucial to avoid penalties.
This might be difficult to swallow, but younger people really do have the edge when it comes to saving. We know, it sounds strange, given their lower average incomes and their Student Loan repayments. The thing is, when you’re younger you’ll usually have fewer unavoidable drains on your finances. From the ages of 20 to about 40, a lot of people in the UK aren’t yet coping with mortgage payments or the costs of raising kids, for instance. Again, just crunching the raw numbers, a typical Brit under 40 will have more disposable income and fewer expensive bills to pay each month. If you only start your retirement saving once all those other costs kick in, you’ll have a much harder time hitting your goals.
You might have heard it said that Albert Einstein considered a thing called “compound interest” to be the most powerful force in the universe. It’s kind of an urban legend at this point, given that the story didn’t start going round until long after Einstein was dead. Either way, though, the basic idea’s pretty sound.
So what’s compound interest and why does it matter? Well, at its heart it’s just a way of letting your money work a little harder on its own. When your savings are earning interest, over time, the interest itself starts earning interest, too. It’s like a snowball rolling down a hill. Every time it turns, it picks up more snow. Better yet, as the ball gets bigger, each roll picks up a larger amount of snow than the roll before. Over years, the interest on your interest can pack a lot of extra cash into your savings.
The same principle applies to investments, including pensions, although there’s obviously some risk involved. The returns are invested alongside your original investment to speed up the rate your money grows. It takes years to see the best benefits, of course, but that just makes it more important to start as early as you can.
This is just good sense, but getting yourself into the right kind of saving habits earlier in life is always the best plan. Those first few steps toward setting up your retirement pot need to be in the right direction, and getting used to the idea of keeping living costs under control and saving consistently will help keep you on track for life. You’re basically building a relationship with the actual idea of money, and getting that balance right from the start can dramatically improve your financial situation when you come to retire.
We’ve talked about pensions quite a lot, both in this guide and some of our others. There are obviously pros and cons to them, when you compare them to other kinds of saving or investing. You can watch more about those in our video, “Long-Term Saving: SIPP or ISA – Which Should You Choose?” – but for now, the main thing to know is that pensions are a really good way of saving for the long haul, with some very nice tax features to them.
In practical terms, though, one of the main benefits is also one of the strangest. You really don’t have easy access to your pension savings most of the time. They’re generally locked away tight until you hit the age of 55. That sounds like a pretty severe limitation – and it’s absolutely supposed to be. However, that very restriction is also one of your pension’s greatest strengths. Locking your money away like this keeps your retirement pot leak-proof, so it’ll still be there when you need it. As always, though, the sooner you get started, the more you stand to benefit.
Another point we always make is that the interest on your debts will virtually always mount up faster than the returns on your savings. Over time, any gains you’re making can easily be chewed up by the extra debts you’re racking up. So, before you start any major saving journey, you need to bring down the debt you’re carrying as much as possible. Cutting down what you owe is actually a bigger priority than setting cash aside, particularly when you’re just starting out. With those debts cleared away, you’ll be able to put the focus where it needs to be – on stacking up those lifetime savings.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
It’s simple mathematics. Whatever you’re saving toward, the sooner you start the easier it’ll be. Think about the kind of retirement you’re going to want. Will you need cash to travel, take cruises and spoil your grandkids rotten? The things you’ll be able to do with your life after retirement are going to depend very much on the decisions you make in your younger years. Retiring with only enough to cover your day-to-day living expenses is going to leave you with a gaping hole in your bucket list.
10 years really isn’t a huge chunk of time when you compare it to your entire working life. However, the difference that decade of saving makes can be massive. Let’s assume you’re a youngster of 25, looking to build a retirement pot of £300,000 by the time you hit State Pension age. Just to throw some fairly realistic numbers in, we’ll say you earn £29,000. According to Royal London, you’d be looking at socking away savings at a monthly rate of £380 to hit your goal. Delaying the start of your saving plan by just 10 years, however, would bump those monthly contributions up to a whopping £540 per month.
Obviously, there are some estimates and averages in those predictions, but the point is that starting earlier makes the climb toward your ideal retirement a lot less steep. When you consider that 10 years is also the length of time the average UK saver is expected to outlive their pension pot (so says the World Economic Forum), you start to see the scale of the late-saver problem.
Okay, so from where you’re standing right now, your retirement date might look like it’s a long way off. Again, though, the earlier you start saving toward it the closer you can bring it. There are pros and cons to this, of course. Some studies suggest that working later into your life can give it a better sense of structure and meaning. You’ll also have to think about things like qualifying for the full State Pension, with some early retirees finding they haven’t paid enough National Insurance Contributions to get the maximum rate. Even so, it’s a safe bet that most people would stop work sooner rather than later if they had the choice.
A pretty eye-opening report from the University of Amsterdam has found that retiring sooner can actually add years to your life! While a lot of people still claim that working longer helps to keep your mind and body active, there’s another side to that coin. As the study shows, retiring earlier can cut your chances of death over the next 5 years by a staggering 42%. Admittedly, the research findings mainly apply to male Dutch civil servants – but the basic principle probably still applies to more or less anyone.
Why would this be the case? Well, for one thing, slaving all day at work isn’t always the healthiest way to spend your time. Once you’re out from under the daily grind, you’ve got more time to look after yourself, get exercise and eat well. You’re also more likely to be able to sort out quick medical attention for any sudden health concerns. For another thing, work is just sometimes flat-out stressful. That alone can ramp up your risk of life-threatening conditions like strokes and cardiovascular disease. You can’t hold back the hands of time forever but, statistically speaking, the younger you are when you retire, the healthier you’ll be.
Yes, you should still get a P45 from your last employer when you retire. You should hang onto it, too. Your pension provider will expect you to have it to hand, and you'll need it to keep your tax code straight if you make any withdrawals from your pension.
We’re all used to checking review sites for pretty much everything these days. Why should it be any different for tax advisers? Trustpilot’s usually a good place to start looking – but keep in mind that the review scores you find will depend very much on what the reviewer was hoping for. In particular, you want to look for reviews from people or businesses that seem to be in a similar situation to yours. The needs of a sole trader or very large company might be completely different from your own, for instance, so their reviews might not be as relevant to you. Personal testimonials are another good way of sorting through your tax adviser options. Again, though, you’re looking for opinions from people with the same basic set-up and needs as you.
Obviously, you can’t just skim-read the first vaguely appropriate review you find and expect everything to be fine. Read around and look for general patterns and trends in what people are saying. A little up-front research can save you a world of hassles later.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Revolving credit includes things like standard credit card arrangements. You can keep borrowing cash on an ongoing basis, up to an agreed limit, making repayments as you go to bring down the overall amount. Along the way, the debt will tend to stack up interest, which you’ll obviously need to keep on top of to avoid hitting your overall limit even if you don’t keep borrowing more. As long as the customer keeps their end up, the deal basically continues until it gets closed.
During our opening hours you can get hold of us for a chat:
Of course, busy work lives can often mean that you can’t get free to talk during opening hours. No problem! Just use our contact page, send us a private message through Facebook or email us at info@RIFTrefunds.co.uk.
If you need to update your personal information or refund claim details, the easiest way is to log into your MyRIFT account. You can even upload documents there.
To track the progress of your tax refund claim, you can either use your MyRIFT account or your free MyRIFT app.
You can also help spread the tax refund love by referring your friends to RIFT through our website or your MyRIFT app.
It doesn’t take a huge amount of paperwork to claim a tax refund with RIFT. However, the more evidence you have to back up your claim, better the result. Here are some of the most important documents for claiming your tax refund:
Don’t worry too much if you don’t have every last scrap of paperwork to hand. We can help you track down even the trickiest details to work out exactly what you’re owed.
Getting your tax refund with RIFT is simple and stress free. Here’s how it all works:
So, are tax refunds legal? Is RIFT Tax Refunds a legitimate company? The answer to both of these questions, of course, is a resounding yes!
The thing that most people never realise about HMRC is that they only want the tax you owe them – and not one penny more. When you shell out from your own pocket for some of the essential costs of your job, HMRC lets you claim back some tax for those expenses. It’s all completely legal – in fact, HMRC actively wants you to claim back what you’re owed.
At RIFT Tax Refunds, we take all the stress and paperwork out of claiming your yearly tax rebates. We crunch the numbers, fill in all the forms and tackle the taxman for you to make sure you get what’s yours.
With RIFT Tax Refunds, there are no up-front charges or hidden fees. In fact, if it turns out that you don’t have any tax to claim back, we don’t charge you anything at all!
Our standard charges are:
When you make your tax refund claim with RIFT, everything’s included in our single, simple fee. That includes sorting out the documents, tracking down any missing details, calculating and filing your claim and dealing with HMRC for you. RIFT also gives you year-round aftercare at no extra charge, covering things like:
Any time you have a question or a worry, you can get in touch with us for advice, guidance and practical help. It’s all part of the service.
What’s more, your refund comes with a unique RIFT Guarantee. As long as you’ve given us the information we need to handle your claim properly, we’ll keep both you and your refund completely safe. If HMRC ever disagreed with the amount we claimed and demanded some cash back, the guarantee means we’d pay them from our own pockets, not yours. It wouldn’t cost you a penny!
Yes you'll need a MyRIFT account to access the app. MyRIFT holds all the information needed to make your tax refund claim with us. It's free to set up and it's the easiest way to update your info, track your documents and make your claim.
New to RIFT
If you're new to RIFT and wanting to get your claim started, have checked that you're due a refund by answering the 4 simple questions, and filled in your name, email address and created a password then you've already created your account. You should also have received a Welcome to RIFT email that contains more information about what happens next and has all the links you need.
Login page to continue updating your information.
If you need to reset your password, you can do that from the login page.
If you need any help, give us a call on 01233 628648 or use the Live Chat to talk to one of our Customer Service Team.
Returning to RIFT
If you've claimed with us before using a paper Refund Pack or Forms by Phone and not yet set up your MyRIFT account then get in touch by calling 01233 628648 or using the Live Chat below and we can get your account created and make it easier for you to claim this year.
Once you're logged in you'll be able to fill in your personal details, work locations, expense details and upload relevant documents. It's everything you're used to doing when making a claim with RIFT, but much quicker and easier now. You can also track the progress of your claim whenever, and wherever, you want to.
Once you are happy you have uploaded all the necessary information, press submit and we will take it from there!
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
If you're already a RIFT customer and have given us information online before then you'll have done that using your MyRIFT account. If you can remember your login details, you can sign, update your info for this year, upload your documents and get started right away.
It might be a year or more since you last used your MyRIFT account, so if you can't remember the details (email and password) you used to set it up just get in touch using the Live Chat here on the site, call 01233 628648 or drop us an email to info@riftrefund.co.uk and we'll get it all reset and ready for you to use again.
If you've claimed with us before using a paper Refund Pack or Forms by Phone and not yet set up your MyRIFT account then get in touch and we can get your account created and make it easier for you to claim this year.
If you're not sure if you've got an account get in touch and we can check for you. If you have, we'll help you get started, if not, we'll get you set up.
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
If you forget your password for your MyRIFT account, look below the log in button and you'll see a helpful link to ‘reset your password’.
Click the link, enter the email address you use to login to your MyRIFT account and we will email you a link to reset your password.
Once you get the email, open it and click the link which will take you a page where you'll be asked to create, and then confirm, the new password you want.
Press ‘change password’ and you will be taken to the homepage of your MyRIFT account.
If you can't remember the email address you used when setting up your account, or need help with anything else, please give us a call on 01233 628648 or use the Live Chat below and we can get you all set up.
If your email address has changed since you set up your account, or if you want to use a different email address for any reason then it's easy to update.
If you still have access to your old email account, use it to login and then you'll be able to update your email address on your MyRIFT Personal Dashboard.
If you no longer have access to your old email address, or can't remember it, and need us to update your account to your new address then give us a call on 01233 628648 or use Live Chat and our team will be happy to get it all sorted out for you.
There are a couple of reasons that you may have a MyRIFT account and not realise it.
Account created a long time ago
The most common is that you set one up when you first made an enquiry to RIFT, and that could have been quite a while ago. If you answered the 4 questions on our website to see if you were due a refund you would have been given the option to set up your account. Do you remember filling in your name, email address and creating a password? If so that's when it was set up and you would have also received a confirmation email.
If you have an account already, and can remember the details you gave when it was created, you can use them to login, reset your password or update your email, and then continue with your claim online.
If you aren't sure of any of the details you used and need us to reset them, give us a call on 01233 628648 or use Live Chat and our Customer Service Team can help you.
Account created for you by Customer Services and never needed
If you made a claim with us over the phone one of our Customer Service Team may have asked you if you would like them to set an account up for you to use. If they did this then you would have been sent an email with instructions on how complete the set up and create your password and confirm login details, but if this was it the case it was probably more than a year ago now.
What this means is that the account is sitting there in the system, even if you never needed to use it.
It's easy to get it reactivated so that you can update your info, upload your documents and track the progress of your claim this year, though.If you do still have the set up email, you can follow the instructions but it's probably easier to just give us a quick call on 01233 628648 or use Live Chat and we can get it all working for you.
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message
If you're having trouble logging in and need to check the email address you used to set up your account, simply give us a quick call on 01233 628648 or use the Live Chat and our we'll be able to quickly check for you.
Once you know, you can log in and carry on, or if you'd like to update the email on the account then we can do that for you there and then.
You can call or Live Chat with us us 8.30am to 8.30pm Monday to Friday and 9.30am to 1.30pm Saturday.
Outside of these time you can send us an email to info@riftrefunds.co.uk or go to our Facebook page and send us a private message.
Once you log in to the app you'll be given a unique link that you can share with your friends via text, whatsapp, social media or email. Your unique link contains a referral ID which means we can track how many people you refer and how many of those people then go on to make a claim.
For every friend you refer who goes on to make a claim, we'll pay you £50. You get £50 for every successful referral and there's no limit to the number of people you can pass on to RIFT. We'll even give you a bonus of £150 for every 5 people you refer - that's £400 in total.
And that's not all! You'll get entered into our big prize draws to win anything from £150 to £500 cash, or the massive Star Prize typically worth £1,000 (t&cs apply).
By the end of the next working day
Your Personal Tax Specialist will let you know once they have calculated your claim.
The Individual Savings Account (ISA) system’s a pretty popular way of getting started in investment funds. There are a couple of basic types of ISA, so let’s kick things off by breaking them down a bit. Here are the main flavours ISAs come in and what they actually mean:
CASH ISAs
Cash ISAs are a lot like traditional savings accounts. As with all ISAs, there are limits on how much you can pay in each year, but the good news is that you don’t pay any tax on your interest. Depending on the type of cash ISA you pick, you might have instant access to your money and a variable interest rate or a fixed rate of interest and some restrictions on how you get your hands on your money. With some ISAs, you need to lock your money away for a set time and then receive a set pay-out at the end. The longer you lock the cash up, the more interest you’ll generally get.
Cash ISAs are usually seen as a reasonably safe bet, since you have a pretty good idea of what to expect from them going in. It’s worth remembering that your investment could still be losing money in real terms if the interest doesn’t keep up with the rate of inflation, though.
Stocks and Shares ISA
Stocks & Shares ISAs still protect your returns from the taxman. However, your money’s invested in a range of investment types, from individual shares in businesses through to government bonds. Depending on how you want to set it up, your ISA can either be managed for you (for a fee) or you can choose where your money gets invested yourself.
Another nice feature of ISAs is that your money’s covered by the Financial Services Compensation Scheme (FSCS). This basically means you’re protected for up to £85,000 of losses if your ISA provider collapses. That sounds great – and it really is. However, don’t fool yourself into thinking it protects the value of your actual investments. Losses that come from the basic ups and downs of the market aren’t covered by the scheme.
The basic limit for how much you can pay into an ISA is £20,000, as of 2021-22. You can split your allowance across more than one type of ISA, though. As with any other kind of investment, it’s possible to walk out with less than you had walking in with a stocks & shares ISA. However, you’ve got a decent chance of making money over the long term this way.
Most people in the UK never have to think about how their tax gets calculated or collected. Everything’s handled for them automatically through the Pay As You Earn (PAYE) system, with the Income Tax and National Insurance Contributions (NICs) they owe already taken out of their pay by their employers before they get it.
But there are millions of people across the country who have all sorts of income that can’t be taxed that way because those earnings don’t come through an employer who can calculate that tax and pay it to HMRC.
That’s where the Self Assessment tax return system comes in.
It’s not just the self-employed who have to use Self Assessment tax returns to tell HMRC about their money situation. For example, you might still also need to use Self Assessment if you:
We know—that’s quite a list, right? That’s one of the reasons why so many people get tangled up in the regulations.
Leaving the taxman waiting when he’s expecting a tax return from you can get messy—and expensive—very fast. We’ll talk more about that in a bit, but for now just remember that you really can’t afford to ignore a demand for Self Assessment paperwork from HMRC, even if you’re positive it’s just a mistake.
With Self Assessment, you use a tax return form to report all your untaxed income to HMRC. You also report information such as the costs of running your business or maintenance expenses for a property you rent out so that these “allowable expenses”. can be deducted from your tax bill.
For example, when you’re self-employed, it’s not your overall income you’re being taxed on. Instead, the taxman’s only after a bite of your actual profits after your essential costs have been paid. So far so good—but here’s where it starts to get trickier.
There are lots of fiddly little rules about what actually counts as an “allowable expense” in difference circumstances, of course, and that’s an important thing to keep in mind. It’s easy to get tripped up if you don’t understand the system and errors in your tax return can result in a penalty notice from HRMC.
Depending on the type of income you need to report to HMRC there are a number of different forms you will need to complete – either online or in hardcopy.
This is the big one. You can fill it in and submit it entirely online, or download it and print it out to send later by post. If you do it online, then HMRC will a few simple questions at the start to narrow down which sections of the form apply to you. That’ll save you from wading through a pile of unnecessary pages.
Form SA100 will tackle all the big questions HMRC has about you and your money. It’s where you’ll report your untaxed income, any business expenses that count against your profits and a lot of other important stuff. If you’re self-employed in construction, for instance, it’s where you’ll claim back any tax you’re owed through the Construction Industry Scheme (CIS).
This is the first of several add-on “supplementary pages” that you might need to use when you’re filing your Self Assessment tax returns. Form SA102 comes in when you’re the director of a company or have employment income to report alongside your self-employment earnings.
SA103S is a supplementary form for reporting self-employment income when your “turnover” (total business income) in a tax year is under the VAT threshold. The “S” in the name means it’s the short version of the form. If your turnover goes over the VAT threshold, you’ll be using the “full” version of the form instead, which is called SA103F.
When you’ve got income from a business partnership to report, you’ll use one of these forms to do it. As with the self-employment pages, there are short and long versions of these forms. The one you use depends on your situation. If you’re only reporting trading income from a partnership and interest or “alternative finance” receipts (from crowdfunding, etc.), for instance, you can use the short version.
Whether you’re renting out a room in your own home or letting out entire UK properties, you’ll need to tell the taxman about the money you’re making and the expenses you’re coughing up. Either way, form SA105 will need to be added to your tax return to do this. The exception is if the income comes from land or property overseas, although you can still use SA105 to report furnished holiday accommodation earnings in the European Economic Area.
When you’ve got money coming in from overseas, you may still have to pay UK tax on it. Depending on your situation, that could mean foreign wages, investments, rental income or pensions. A lot depends on whether you’re a “UK resident” for tax purposes, so get advice if you’re not 100% sure where you stand. If you do have to pay tax on your foreign earnings, you’ll need to include form SA106 in your Self Assessment paperwork.
Capital Gains are the profit you get when you “dispose of” (sell, swap, claim compensation for or even just give away) something that’s gone up in value since you bought it. As you’ve probably guessed, there’s a maze of rules, exemptions and thresholds to pick your way through here, and it’s very easy to get tripped up if you don’t know the territory. Depending on your circumstances, the “assets” you pay Capital Gains Tax on could include jewellery, works of art or personal possessions worth over £6,000. Whatever it is, you can report the gains (or losses) you’ve made in form SA108.
Residence status is a huge part of UK tax law. Your status affects the kinds of tax you pay, along with which sources of income you pay it on. That means it’s incredibly important to get your residence paperwork right. Form SA109 will help you explain your residence and domicile (where your permanent home is) to the taxman.
Yes, you certainly can! In fact, you can claim back any tax you’re owed, for any reason, for up to 4 tax years. As with any other kind of tax refund, you’ll still need to give HMRC some basic information about the work travel and other expenses you’ve paid from your own pocket.
If you don’t have all the information you need, RIFT can help track it down for you. We can even get the essential details about your previous jobs if the companies you worked for or the sites you worked at no longer exist!
The answer to this question depends on how much of a deposit you want to put down. We’ve spoken about the benefits of putting down a bigger deposit and looking at how to reduce the amount you borrow. But ultimately, it comes down to what you’re comfortable with.
Once you’ve got the amount of money that you’re happy to put down, it’s a case of putting some savings aside until you reach that target. If you want to hit it quicker, you’ll have to save more each month. If you’re in less of a rush, you can take more time with less pressure on cutting too many costs.
If you’re living paycheque to paycheque, it may be even harder to build up savings over time. Budgeting is seen as a great way to analyse your spending, something that we go over in our How to Budget Money for Complete Beginners video - check out the link for that below. If this sounds like your current position then it’s definitely worth a watch and could help you save more efficiently.
With all this considered, it’s really important that we stress that this is just the basics of how to save for a house and not a definitive list. Your ability to save and afford a home depends entirely on your personal and financial circumstances. If you’re ever in doubt, speak to a financial advisor.
Judging from Ofgem’s report, we’ve almost never been this fed up with the businesses supplying energy to our homes. In fact, 1 in 4 of us isn’t satisfied with the accuracy of our bills or how easy they are to make sense of. So why are we sticking around instead of switching?
Well, for one thing, a lot of us just aren’t paying close enough attention to our tariffs. Fixing your energy tariff can be a good way to protect yourself against rising prices. However, once the fixed term ends it’s easy to find yourself rolling into a higher variable rate. At the moment, about 65% of us are still on high-priced variable tariffs. With the cheapest tariff basket rising by £22 after the price hikes we’ve been seeing since September, now’s the perfect time to switch. It’s not complicated to compare deals and swap to a better one, so it’s definitely worth looking into.
This might sound obvious, but it’s worth spelling out. Wasting energy is the same as wasting money. Even pretty small changes to your daily routine can add up over the course of a year.
Just to pick an example, nudging your thermostat down only 1 degree could net you an overall saving of as much as £85-£90 over the year. The chances are you’ll barely notice the difference in temperature – but you’ll definitely feel it in the weight of your wallet. The savings start basically immediately, and you’re in complete control. Experiment for a day and see how you feel. If you’re still warm enough, you can gradually dial your thermostat down even further until you’re happy with the balance of warmth and cost.
Beyond your actual heating, it’s worth putting a little more thought into the ways energy’s being wasted in your home. A study from uSwitch, for instance, found that just leaving appliances on standby when we’re not using them is costing UK households a whopping total of £227 million a year! Meanwhile, swapping out your lightbulbs for energy-saving LED types can save you £7 per bulb each year. Considering that these bulbs last for ages, there’s a fair amount of money to be raked in here.
National Savings and Investments (NS&I) is a government-owned bank that runs the Premium Bond scheme (among other things). When you set up Premium Bonds for your kids, you can kick them off with anywhere between £25 and £50,000. Your kids’ grandparents can get in on the action, too. Every month, there’s a prize draw where every £1 bond you’ve got bags you a chance to win. When your child hits 16 years old, the bonds can be turned over to them, along with any interest they’ve won along the way.
Yes, you read that right. That’s interest won, not interest earned.
The winnings from Premium Bonds are tax-free no matter how much you get, with prizes varying from £25 to a massive £1 million. However, no matter how much you’ve got invested in the scheme, there’s no guarantee that you’ll win anything at all. Even if you do, if your winnings don’t at least keep up with the rate of inflation you’ve still lost money in real terms.
NS&I say you’re looking at an equivalent interest rate of 1.4%. However, that average takes in all the extremes, from the people who’ve won the full £1 million to those who’ve never won anything at all.
Yes, weirdly enough, it’s possible to set up a pension for your children. Any parent or legal guardian can do this, with the pension automatically transferring to the child once they turn 18. After that, they can start paying into it themselves.
Children’s pensions are a pretty tax-efficient way to save for your kid’s future. You can pump £2,880 into one every year, with the government topping it up by another 25% for a total of £3,600. In fact, you can put even more in, but you won’t get any more top-ups after you hit the £2,880 limit.
Speaking of tax, any growth in your child’s pension is tax-free, which can see it shooting up in value pretty fast. Just like other kinds of investment, though, the bottom can still drop out and lose you money.
To bring in some hard numbers, let’s say you’ve poured the maximum amount of £2,880 into your child’s pension for 3 years running. That means you’ve put in £8,640, which the government has topped up to £10,800 for you. Now we’ll assume the pension gets an average growth rate of 8%, and your child leaves it sitting there for the next 50 years. By now, that pension pot could be sitting pretty at an impressive £582,000 – and they can take 25% of that as a tax-free lump!
At the end of the day, we’re talking about making sure our kids have the best possible launch pad into an uncertain future. We all want to protect our families, and saving for your children is one of the best ways of doing just that.
Take care of yourself, look out for your kids and keep checking back here for more money tips and updates. Remember - you’re always better off with RIFT.
If you’re not a parent already, then you’ve got a head start on getting your finances in shape. You’d be wise to take advantage of it, too. According to Halifax, the average UK parents are spending £448.41 per month for each child they’re raising. That’s around £5,380 a year per kid – a whopping great chunk out of most families’ household income.
If you’re not already used to long-term saving, the first thing to know is that you’ve got to set realistic goals. That starts by taking a hard look at your total income, and where it’s all going. Our guide, “What You Should Be Saving According to your Salary” breaks down how you can do this. Check it out for useful rules of thumb, like the “50/30/20” system.
The point is to maximise what you’re saving by building a healthier relationship with your money. It really only takes a few good habits to set your finances rolling in the right direction, but you’ve got to take control of your spending. If you’re still planning for starting a family, this is the best time to try a few things out. Kick off your 50/30/20 and run it for a few months to see how quickly you can bulk up your savings account.
Saving money for a child can be difficult to cram into your household budget. In fact, almost half the parents who aren’t doing it say they simply can’t afford to. They know they should be setting cash aside, but it all has to come from somewhere.
Again, our “What You Should Be Saving According to your Salary” guide is a great way to start turning your finances around. To pump a little extra juice into your savings, though, you should also take a look at our article, “Save Money with These 7 Simple Heating Bill Hacks”. With a few basic tweaks to the way you heat your home, you could be saving potentially hundreds of pounds a year toward your child’s future.
Once you’ve built a little money muscle, it’s time to make the most of it. One popular option is the Junior Individual Savings Account (Junior ISA). You can pump one of these accounts up by £9,000 per year if your kid’s under 18 and living in the UK. Like a normal ISA, the returns on these accounts are tax-free and you can choose between a cash or stocks and shares version.
With a cash Junior ISA, your money earns interest without any tax getting taken off. Stocks and shares ISAs, on the other hand, are invested. They’re generally seen as a little riskier, but might stand to grow faster than a cash ISA. Either way, the taxman won’t be taking a bite.
The interest rates on a cash Junior ISA can be pretty high compared to a standard adult one. Again, though, you’ve got to keep in mind that you’re losing cash if your interest doesn’t match the rate of inflation. Your child can take over control of the ISA from the age of 16, but won’t be able to take anything out of it until they’re 18.
Junior ISAs can be mixed and matched, but your kid can only have one of each type. That £9,000 pay-in limit we talked about counts across all the ISAs you’ve got, though. As for which is better, it depends on what your plans are. If you asked a financial adviser, they’d probably tell you it’s only worth considering a stocks and shares Junior ISA if you’re happy locking the cash away for 5 years or more. Generally speaking, longer investments like this can help you ride out any short-term “jumpiness” in the stock market. For the same reason, you’ll probably be advised that the younger your child is, the more risk it’s okay to take with the money.
Depending on the rules of the Junior ISA you’ve picked, there might be some strings attached about how you move money in or out of it. Some have a minimum monthly pay-in, or restrictions on withdrawals. Keep an eye out for these when you’re making a decision. You don’t want to get stuck without access to cash you might need in a crisis, for instance. If you think there’s a chance you might need to dip into your kid’s savings to cover emergency costs, for instance, you might be better off opening an easy-access children’s savings account instead. Watch out, though – if your child gets over £100 in interest from money you’ve paid in, you’ll get stuck with a tax bill if it’s over your own Personal Allowance.
If you want to dive into stocks and shares ISAs in a bit more detail, take a look at the link below
Saving is hard enough without limited income and the temptation that comes with being young. As young people are often grouped together as 18 to 24-year-olds, it’s difficult to find any research based entirely on those aged 18 and under. This comes with its own problems. As you can imagine, someone who’s 24 and in employment may earn a lot more than an 18-year-old in full-time education.
A survey from the Resolution Foundation found that homeownership within this age group was at 28% in 2019 - a significant drop from the 51% peak in 1989. It was also found that just 4% of young people without a home had both the savings and salary to buy a home in their region.
It can be tough to stick to a savings goal, especially when the finish line seems so far away. That 30% “fun fund” you set for yourself can burn out fast when you’re bombarded with exciting ways to splash your cash on a daily basis, putting your 20% savings target at risk. Taking challenges can actually help focus your saving habits to keep you on track. Remember, little and often will get you there quicker than the occasional random cash-dump. Here are some example challenges to try:
The Zero-Spend Challenge
This one’s simple, but surprisingly effective. Just pick a day of the week to keep your cash in your pocket. If you want to get the most out of this, choose the day you’d normally expect to spend the most (on non-essentials, of course. Don’t starve yourself).
If you’re finding it tricky not to open your wallet, try cutting down on your mobile screen-time so you’re not peppered with adverts all day. Other easy tricks include swapping out your usual weekend nonsense for free local activities in walking or cycling distance. Don’t cheat yourself out of too much fun, obviously. Getting the balance right is the key to staying on track.
The 1P Money Saving Challenge
We talk about this in more detail in our article, “The 1p Money Saving Challenge”. Basically, though, just set aside 1p on a given day, then each day save a penny more than you did the day before (add 2p to your pot on day 2, 3p on day 3 and so on). At the end of a year, you’ll have saved a surprising £667.95!
This one’s simple, but surprisingly effective. Just pick a day of the week to keep your cash in your pocket. If you want to get the most out of this, choose the day you’d normally expect to spend the most (on non-essentials, of course. Don’t starve yourself).
If you’re finding it tricky not to open your wallet, try cutting down on your mobile screen-time so you’re not peppered with adverts all day. Other easy tricks include swapping out your usual weekend nonsense for free local activities in walking or cycling distance. Don’t cheat yourself out of too much fun, obviously. Getting the balance right is the key to staying on track.
We talk about this in more detail in our article, “The 1p Money Saving Challenge”. Basically, though, just set aside 1p on a given day, then each day save a penny more than you did the day before (add 2p to your pot on day 2, 3p on day 3 and so on). At the end of a year, you’ll have saved a surprising £667.95!
A Lifetime ISA is a really strong way to save toward a deposit to lay down on your first home. If you qualify for one – basically meaning you’re between 18 and 39 years old – then you get a yearly pay-in limit of £4,000 and a 25% top-up on everything you save up to that limit. So, assuming you pay in the maximum in a year, the government will dump an extra grand into your savings pot.
As with other kinds of ISA, you’ve got a few choices about how your money is used. It’s possible that you could see the highest yearly growth in your savings with a stocks and shares LISA, for instance. However, when there’s a specific target to be saved toward, a lot of people lean toward the potentially less risky cash ISA option.
There’s one slight catch with LISAs that you need to be aware of, though. Most of the benefits disappear instantly if you need access to your money in a rush. If you take anything out before the age of 60 to use for anything other than buying a home, you get hit with a 25% penalty to pay. This basically wipes out all of the top-up payments you’ve received on that money. If you’re actually saving toward buying a house, then there’s no problem – unless you hit a bump in the road and need to cash out early.
Keeping with the theme of diversifying your investments in order to protect them, let’s take a quick look at mutual funds. These are what you get when a bunch of shareholders have their money grouped together to be invested by a fund manager. The cash might be invested in bonds, stocks or other kinds of securities, and investing this way can get you access to investments you couldn’t have afforded to make on your own. The fund manager handles where the combined money actually goes, using their own research, experience and expertise to make investment decisions. You can decide for yourself what level of risk you’re prepared to accept, and balance that against your overall expectations.
So, how do mutual funds compare to ETFs and index funds? For one thing, the point of an actively managed mutual fund is to try and outperform the kind of “averaged-out” levels of growth you get with an index fund that automatically tracks a cross-section of a given market. You do pay for that personalised attention, though, so active mutual funds are often pricier than index-tracking ones. They’re also less predictable and, while you might manage to perform better than an index fund in the short term, it can be hard to point to any really consistent benefits over the longer term.
As you’ve probably noticed, one of the key tricks people use to reduce the risk and make bigger investments is to group up and pool their resources going in. This is what property crowdfunding’s all about. You team up with other investors to buy a property and split the ownership (along with the expense). You see this a lot with buy-to-let investors. They divide the costs going in, then split the rental income between them.
This can be a decent option, but like any other investment you need to think ahead a bit. Most of these deals involve splashing out for a management agent, unless you’re shouldering all of that workload yourselves. Also, depending on how the crowdfunding side of this was arranged, there may also be platform fees to cough up. Those kinds of costs all need to be weighed against the eventual rental income, along with any ongoing costs for property upkeep and so on.
The platform you use may be able to offer some educated guesses about the returns you can expect. However, keep in mind that predictions might not always match reality – and again, management fees can eat into the bottom line. On the other hand, the share of the rent you’re receiving isn’t the end of the story when you own property. If the place goes up in market value, your investment has grown. Once again, though, that’s not something that’s easy to predict, so investing in property might not be an ideal choice for people looking for steady returns. Rent only comes in if you can find tenants, after all, and you’re on the hook for most kinds of repair work.
The final thing to consider about property crowdfunding is how easy it is to get your money back out. Depending on your set-up, the platform you’re using might streamline this by letting you sell your share of the property directly through them. This can still take time, though – and make sure you check the deal you signed up to. Some platforms will require you to keep your money tied up for years before cashing out.
We’ve touched on these before, but bonds are like a kind of fixed-term loan that you make to a government or company. There’s an interest rate established going in, which you’re paid throughout the duration of the bond. At the end of that time, the bond ends and you get your money back.
Bonds (sometimes called gilts when they’re from the government) have a reputation as a relatively low-risk type of investment, with the trade-off being that they usually offer fairly modest returns. They have a rating system to give you an idea of what to expect from them, running from AAA to D. The higher the rating, the safer the investment is expected to be. The name of the bond will usually also give you some basic information and expectations. For instance, a “4% RIFT 2028” bond will pay out 4% interest per year, then expire and return your money in 2028. You’ll often, but not always, find that you’ll be offered better interest rates on longer-term investments.
To get started in bonds, you can use the government’s Debt Management Office to invest in gilts directly. For corporate bonds, the London Stock Exchange has a Retail Bond Platform. To start investing there, you’ll need to have at least £1,000 to front up. Remember that you’re not buying shares in a company here. As we mentioned already, this is more like a loan you’re making. That doesn’t kill off the risk altogether, though. If the business goes under, for example, you could still be looking at some losses. You probably won’t stand to lose everything like a shareholder can, though. You’ll count as a creditor if the business becomes bankrupt, for example, so you’ll stand a decent chance of getting at least a good chunk of your money back.
If investing individually in fixed-income options sounds like too much work, you can opt for a collective fund like a unit trust. Collective bond funds work pretty much the same way as the other mutual funds we talked about above. Instead of your money going into one or more individual bonds with a fixed term, it gets spread out over potentially hundreds of different bonds and/or gilts. Generally speaking, you’re going to have to pay a fee for someone to manage all of this for you, which will drag your returns down, but you’ll be cutting back on the risk factor and won’t be tied to any specific expiry dates on your investments.
Getting into investment doesn’t need to be a blind dive into deep water, but there really is no such thing as a 100% “safe bet”. Don’t put money in harm’s way unless you can definitely live without it. Even if the eventual returns are good, a lot of the best options can mean locking your cash away for long stretches of time. Remember the all-important 50/30/20 rule: 50% of your income is set apart for essentials, 30% for non-essentials and 20% is saved. It’s that final 20% that you’ll be using for investments.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Used correctly, it’s possible to make money from credit card incentives like points and cashback. Some card issuers offer higher incentives than others - for example, a higher percentage of cashback on purchases.
You’ll often see signs in shops saying certain types of card are not accepted. That’s usually the cards that offer the best incentives, like a high cashback percentage on purchases. That money has to come from somewhere. And in many cases, the card issuer bills the merchant. The result is some merchants will refuse to accept that type of card - so they don’t take the hit. But ask yourself this; What about other cards that are accepted but still give incentives back to the cardholder?
In those cases, the merchant still foots the bill - initially. But where do you think the merchant makes up their margin? On the price of the items in their shop. YOU are footing the bill for other people’s rewards. It’s already hidden in the sale price of the items you buy. So, only you can decide whether a rewards-based card is the right option. But just remember, you’re realistically footing the bill either way.
As with any credit card, think hard before signing up. In particular, you’ll need to work out whether the rewards outweigh any charges. For example, if there’s a £150 annual fee and you’ll only use the card sparingly, the rewards may add up to less than the fees.
Used alongside interest-free periods, it’s possible to double the money-making potential of credit cards.
There are credit cards on the market with two-year interest-free periods. Sometimes even more. Just do a quick search and you’ll easily find a list of all the latest offers. However, “up to” is the operative phrase here.
Let’s say you sign up for a credit card today and it has an interest-free period of “up to” 24 months. Tomorrow, you buy a laptop for £1,000. As long as that £1,000 is paid off before your interest-free period ends in 24 months, you’re golden.
But let’s say you put another £1,000 item on your card the following month. That item’s interest-free period is only 23 months. If you buy another item the month after that, it’s 22 months, and so on.
So make sure you circle the date in your calendar so you know when your interest-free period ends. Every time you’re thinking of buying an item on that card, work out how long you have left to pay it off before interest kicks in.
Remember, once that interest does kick in, it’s applied to the entire balance of your card, regardless of when you bought each item. So if your 24 months are up and you have an outstanding balance of £5,000, you’ll begin paying interest on the full £5,000 right away. Cards with long interest-free periods often require a minimum payment each month. And they’ll usually require a direct debit for that payment.
So remember these three things:
But how does this help you make money? Well, let’s say you use that card for your normal expenses. Bills, groceries - any regular costs you don’t currently put on a credit card. Take the money you’d normally spend on these expenses, and put it into a savings account that pays a healthy interest rate. Even if it’s only minimal, like 0.15 percent, you’re technically making money!
At the end of your interest-free period, take the money from your savings account to pay off your credit card. You’ll be left with a tidy sum from the interest - all of which is free money!
So, we’ve looked at rewards-based cards. And we’ve looked at interest-free periods on cards. Each one has its advantages in terms of putting money back in your pocket. But what would happen if you used both together?
It’s unlikely you’ll find a card that pays rewards and has a long interest-free period. It’s far more likely you’d need two separate cards. So in that case, you might have a card with an interest-free period that you use for regular expenses. And then your rewards card comes out for the bigger purchases - like a new TV. While this could allow you to use each card to your advantage, a word of warning.
The more credit cards you have, the easier it can be to lose track of your spending. It’s also really, really important to consider your credit file. Taking out too many lines of credit in a short space of time can affect your credit score. So, as always, borrow responsibly and spend responsibly. And remember, this is not an exhaustive list. There may be other options on the market that we haven’t covered here. So as always, do your own research.
The best way to keep control of your money is to make saving a habit. That means regularly putting away what you’ve decided you can afford, as soon as you’ve been paid for the month. We sometimes talk about the “50/30/20” rule, where you divide your income up into needs (50%), wants (30%) and savings (20%). It’s a simple system and it works. Every payday, you’ve already carved off the chunk of money you’ll be saving, and socked it away safely so it doesn’t get lumped in with your other spending.
Of course, to make the most of any saving strategy, you’ve got to work out exactly how much cash you’re reliably bringing in each month – and how much of it you’re spending. You can find a lot more information about how to do this in our guide, “4 Fixed Income Saving Strategies - Combine to Win!”, where we cover some top budgeting tricks that’ll put you back in charge of your finances.
Remember, missing your savings target for any given month doesn’t derail your whole plan. We all face unexpected setbacks, and some months just cost you more to get through than others. If you can manage it, a simple way to catch up is to spread out the amount you missed your goal by over the next few months. You’ll be back on track in no time, and will probably barely notice the difference month by month.
First off, making a proper, grown-up budget’s easier than it looks. It’s just a question of making sure every pound pays its way. A “zero-sum” (or “zero-based”) budget might sound weird and a little depressing, but it’s a strong tool for taking control of your cash. Here’s how it works:
Income: Every penny of your income has to go somewhere, right? So let’s work out where. We’ll start with calculating exactly how much money we’re playing with. If you’re used to claiming tax refunds (and you really should be), this is basic stuff for you. If not, it’s easy to pick up. Simply add up all the cash you’ve got coming in, wherever it’s coming from. That’s step 1 done already!
Expenses: Again, if you’re an old hand with tax refunds you’re on solid ground here. Start with the stuff you really can’t change, like your rent or mortgage payments. Once those are accounted for, look at the expenses you can control more easily. You don’t have to make any major life decisions just yet. Just track what you’re spending for now and we’ll worry about tweaking it later.
Everything else: Here’s the real trick to zero-based budgeting. With any luck, there’s still some cash unaccounted for in your calculations. We’re talking about the money you’re saving, investing – or even just giving away. Every penny goes somewhere, even if you’re keeping it. List all that stuff here for a full picture of your finances.
This is a nice rule of thumb that fits in well with your zero-sum budgeting. It’s important to break your spending down into a few basic types, so you can take a tighter grip on it. The 50/30/20 system is a simple way of organising your day-to-day expenses. For each cost you’re paying, slot it into one of these categories to see how you measure up:
Needs
Your 50% section. Half of your total income should be allocated to essential living costs and purchases like:
Wants
Drop 30% of your income into this category. Here’s the stuff that you can do without, but wouldn’t necessarily want to skip all the time. Examples include:
Savings
Here’s where the remaining 20% of your income goes. You’ve got a ton of options for what to do with your savings – enough for a whole article of its own, in fact. For the moment, though, how you divide your spare cash into short and long term savings will depend on your situation and needs. One thing that’s worth thinking about, though, is how quickly you might need access to your money. Dipping into your savings to cover an emergency bill is a lot easier if you’ve got some cash in an instant access savings account, for instance. You don’t need to put all your eggs in one basket, but making sure you can get your hands on a chunk of your savings in a hurry is a solid move.
Time to flip the script on your zero-based budget. When you’re splitting sections of your fixed income into their various slots, it’s easy to fall into the trap of leaving savings till last. When you do that, you’re actually forgetting to “pay” yourself – and not taking your savings nearly seriously enough.
Try this little trick instead. When you’re sorting out your expenses, tackle your needs first. Remember, that’s 50% of your income and it’s stuff you can’t live without. Once that’s taken care of, skip your wants for now and move straight on to savings. When you save money, you’re literally investing in your own future. With your savings in the bag you can see what’s left over to cover your wants list. You’ll probably find it a lot easier to stick to your 20% savings target this way, and that’s the secret to making every payday meaningful.
This is an updated version of a money management trick that’s been around forever. Back in “the old days” when pretty much everyone was working cash in hand, people would physically split their income into separate envelopes – one for bills, one for spending and one to save. Is that sounding familiar already? Once you’d tucked money into an envelope, you could use it as necessary for its specified purpose. However – and this is important – you couldn’t move it from one envelope to another except in emergencies.
Now, no one’s suggesting that you empty out your bank accounts and start buying envelopes. There’s a modern twist on the same basic idea, though.
Here's what to do:
Once you get comfortable with all this, you can even take things a step further. You could open separate accounts for different kinds of expenses, for instance, or explore your savings options a little further. Make sure you keep your eyes open for the best deals, though. You can often get some pretty good rewards for opening accounts with a new bank, so shop around before diving in.
The main thing to remember is that you’ll get the best out of “money hacks” like these by combining them. Once you’ve got the hang of making and sticking zero-sum budgets, you’ll find the rest of it falls together pretty easily. The main thing is that you’ll have taken a firmer grip on the reins of your finances – and that’s the secret to steering them in the right direction.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Region: Inner London | Local Authority: Inner London | Per pupil net expenditure: £6,779 | Annual change: 5%
Region: London| Local Authority: London (average all boroughs)| Per pupil net expenditure: £6,362 | Annual change: 4%
Region: Outer London | Local Authority: Outer London | Per pupil net expenditure: £5,742 | Annual change: 4%
Region: South West | Local Authority: South West | Per pupil net expenditure: £5,537 | Annual change: 7%
Region: East Midlands | Local Authority: East Midlands | Per pupil net expenditure: £5,450 | Annual change: 5%
Region: East of England | Local Authority: East of England | Per pupil net expenditure: £5,423 | Annual change: 7%
Region: Yorkshire and The Humber | Local Authority: Yorkshire and The Humber | Per pupil net expenditure: £5,370 | Annual change: 6%
Region: South East | Local Authority: South East | Per pupil net expenditure: £5,235 | Annual change: 7%
Region: North West | Local Authority: North West | Per pupil net expenditure: £5,228 | Annual change: 6%
Region: West Midlands| Local Authority: West Midlands | Per pupil net expenditure: £5,185 | Annual change: 3%
Region: North East | Local Authority: North East | Per pupil net expenditure: £5,107 | Annual change: 5%
Region: England | Local Authority: England | Per pupil net expenditure: £5,454 | Annual change: 6%
Local Authority: Rutland | Per pupil net expenditure: £6,847 | Annual change: -4%
Local Authority: Leicestershire | Per pupil net expenditure: £6,081 | Annual change: 7%
Local Authority: Nottingham | Per pupil net expenditure: £6,007 | Annual change: 5%
Local Authority: West Northamptonshire | Per pupil net expenditure: £5,877 | Annual change: x
Local Authority: North Northamptonshire| Per pupil net expenditure: £5,813 | Annual change: x
Local Authority: Derby | Per pupil net expenditure: £5,652 | Annual change: 3%
Local Authority: Lincolnshire | Per pupil net expenditure: £5, 542 | Annual change: 3%
Local Authority: Leicester | Per pupil net expenditure: £5,410 | Annual change: 4%
Local Authority: Derbyshire | Per pupil net expenditure: £5, 146 | Annual change: 7%
Local Authority: Nottinghamshire| Per pupil net expenditure: £5,037 | Annual change: 4%
Region: East Midlands| Local Authority: East Midlands | Per pupil net expenditure: £5,450 | Annual change: 5%
Local Authority: Thurrock | Per pupil net expenditure: £21,999 | Annual change: 97%
Local Authority: Peterborough | Per pupil net expenditure: £6,316 | Annual change: 9%
Local Authority: Southend-on-Sea | Per pupil net expenditure: £5,957 | Annual change: 4%
Local Authority: Essex | Per pupil net expenditure: £5,653 | Annual change: 10%
Local Authority: Suffolk | Per pupil net expenditure: £5,630 | Annual change: 8%
Local Authority: Bedford | Per pupil net expenditure: £5,407 | Annual change: 6%
Local Authority: Cambridgeshire | Per pupil net expenditure: £5,375 | Annual change: 8%
Local Authority: Norfolk | Per pupil net expenditure: £5,347| Annual change: 7%
Local Authority: Central Bedfordshire | Per pupil net expenditure: £5,227 | Annual change: 11%
Local Authority: Luton | Per pupil net expenditure: £5,125 | Annual change: 2%
Local Authority: Hertfordshire | Per pupil net expenditure: £5,123 | Annual change: 6%
Region: East of England | Local Authority: East of England | Per pupil net expenditure: £5,423 | Annual change: 7%
Local Authority: Bromley | Per pupil net expenditure: £10,644 | Annual change: -4%
Local Authority: City of London | Per pupil net expenditure: £8,219 | Annual change: 4%
Local Authority: Hackney | Per pupil net expenditure: £7,403 | Annual change: 5%
Local Authority: Tower Hamlets | Per pupil net expenditure: £7,177 | Annual change: 3%
Local Authority: Westminster | Per pupil net expenditure: £7,135 | Annual change: 8%
Local Authority: Kensington and Chelsea | Per pupil net expenditure: £7,079 | Annual change: 9%
Local Authority: Newham | Per pupil net expenditure: £6,939 | Annual change: 6%
Local Authority: Islington | Per pupil net expenditure: £6,863 | Annual change: 5%
Local Authority: Lambeth | Per pupil net expenditure: £6,835 | Annual change: 4%
Local Authority: Camden | Per pupil net expenditure: £6,827 | Annual change: 5%
Local Authority: Hammersmith and Fulham | Per pupil net expenditure: £6,561 | Annual change: 2%
Local Authority: Bexley | Per pupil net expenditure: £6,555 | Annual change: 6%
Local Authority: Southwark | Per pupil net expenditure: £6,547 | Annual change: 6%
Local Authority: Waltham Forest | Per pupil net expenditure: £6,468 | Annual change: 7%
Local Authority: Greenwich | Per pupil net expenditure: £6,444 | Annual change: 1%
Local Authority: Wandsworth | Per pupil net expenditure: £6,427 | Annual change: 7%
Local Authority: Lewisham | Per pupil net expenditure: £6,409 | Annual change: 8%
Local Authority: Barking and Dagenham | Per pupil net expenditure: £6,343 | Annual change: 7%
Local Authority: Croydon | Per pupil net expenditure: £6,268 | Annual change: 7%
Local Authority: Haringey | Per pupil net expenditure: £6,120 | Annual change: 5%
Local Authority: Brent | Per pupil net expenditure: £5,944 | Annual change: 4%
Local Authority: Enfield | Per pupil net expenditure: £5,885 | Annual change: 5%
Local Authority: Ealing | Per pupil net expenditure: £5,588 | Annual change: 6%
Local Authority: Barnet | Per pupil net expenditure: £5,529 | Annual change: 6%
Local Authority: Harrow | Per pupil net expenditure: £5,519 | Annual change: 5%
Local Authority: Hillingdon | Per pupil net expenditure: £5,416 | Annual change: 0.2%
Local Authority: Redbridge | Per pupil net expenditure: £5,403 | Annual change: 6%
Local Authority: Hounslow | Per pupil net expenditure: £5,366 | Annual change: 4%
Local Authority: Sutton | Per pupil net expenditure: £5,331 | Annual change: -1%
Local Authority: Havering | Per pupil net expenditure: £5,274 | Annual change: 6%
Local Authority: Merton | Per pupil net expenditure: £5,252 | Annual change: 3%
Local Authority: Richmond upon Thames | Per pupil net expenditure: £5,172 | Annual change: 6%
Local Authority: Kingston upon Thames | Per pupil net expenditure: £5,008 | Annual change: -2%
Local Authority: Inner London | Per pupil net expenditure: £6,779 | Annual change: 5%
Local Authority: Outer London | Per pupil net expenditure: £5,742 | Annual change: 4%
Region: London | Local Authority: London | Per pupil net expenditure: £6,362 | Annual change: 4%
Local Authority: Darlington | Per pupil net expenditure: £8,348 | Annual change: 8%
Local Authority: Middlesbrough | Per pupil net expenditure: £6,647 | Annual change: 12%
Local Authority: Redcar and Cleveland | Per pupil net expenditure: £6,614 | Annual change: 58%
Local Authority: Stockton-on-Tees | Per pupil net expenditure: £5,382 | Annual change: 0.4%
Local Authority: Sunderland | Per pupil net expenditure: £5,365 | Annual change: 3%
Local Authority: Northumberland | Per pupil net expenditure: £5,299 | Annual change: 11%
Local Authority: South Tyneside | Per pupil net expenditure: £5,151 | Annual change: 5%
Local Authority: Newcastle upon Tyne | Per pupil net expenditure: £4,962 | Annual change: 4%
Local Authority: County Durham | Per pupil net expenditure: £4,919 | Annual change: 5%
Local Authority: North Tyneside | Per pupil net expenditure: £4,890 | Annual change: 3%
Local Authority: Gateshead | Per pupil net expenditure: £4,813 | Annual change: -0.5%
Local Authority: Hartlepool | Per pupil net expenditure: £4,339 | Annual change: -11%
Region: North East | Local Authority: North East | Per pupil net expenditure: £5,107 | Annual change: 5%
Local Authority: Halton | Per pupil net expenditure: £5,699 | Annual change: 5%
Local Authority: Cheshire East | Per pupil net expenditure: £5,638 | Annual change: 7%
Local Authority: Tameside | Per pupil net expenditure: £5,556 | Annual change: 9%
Local Authority: Blackpool | Per pupil net expenditure: £5,521 | Annual change: 4%
Local Authority: Manchester | Per pupil net expenditure: £5,454 | Annual change: 2%
Local Authority: Liverpool | Per pupil net expenditure: £5,435 | Annual change: 5%
Local Authority: Oldham | Per pupil net expenditure: £5,415 | Annual change: 6%
Local Authority: Lancashire | Per pupil net expenditure: £5,278 | Annual change: 7%
Local Authority: Bury | Per pupil net expenditure: £5,262 | Annual change: 19%
Local Authority: Blackburn with Darwen | Per pupil net expenditure: £5,238 | Annual change: 5%
Local Authority: Bolton | Per pupil net expenditure: £5,186 | Annual change: 7%
Local Authority: Wigan | Per pupil net expenditure: £5,178 | Annual change: 5%
Local Authority: Cheshire West and Chester | Per pupil net expenditure: £5,137 | Annual change: 6%
Local Authority: Cumbria | Per pupil net expenditure: £5,127 | Annual change: 3%
Local Authority: Salford | Per pupil net expenditure: £5,108 | Annual change: 3%
Local Authority: Rochdale | Per pupil net expenditure: £5,100 | Annual change: 8%
Local Authority: Wirral | Per pupil net expenditure: £5,074 | Annual change: 8%
Local Authority: Warrington | Per pupil net expenditure: £5,040 | Annual change: 2%
Local Authority: Trafford | Per pupil net expenditure: £5,026 | Annual change: 8%
Local Authority: St. Helens | Per pupil net expenditure: £5,026 | Annual change: 5%
Local Authority: Knowsley | Per pupil net expenditure: £5,012 | Annual change: -2%
Local Authority: Sefton | Per pupil net expenditure: £4,959 | Annual change: 7%
Local Authority: Stockport | Per pupil net expenditure: £4,904 | Annual change: 9%
Region: North West | Local Authority: North West | Per pupil net expenditure: £5,228 | Annual change: 6%
Local Authority: Portsmouth | Per pupil net expenditure: £5,975 | Annual change: 0.4%
Local Authority: Slough | Per pupil net expenditure: £5,875 | Annual change: -0.3%
Local Authority: Medway | Per pupil net expenditure: £5,872 | Annual change: 6%
Local Authority: Southampton | Per pupil net expenditure: £5,610 | Annual change: 3%
Local Authority: Oxfordshire | Per pupil net expenditure: £5,434 | Annual change: 9%
Local Authority: Surrey | Per pupil net expenditure: £5,363 | Annual change: 8%
Local Authority: Milton Keynes | Per pupil net expenditure: £5,352 | Annual change: 5%
Local Authority: Reading | Per pupil net expenditure: £5,309 | Annual change: 6%
Local Authority: East Sussex | Per pupil net expenditure: £5,288 | Annual change: 8%
Local Authority: Brighton and Hove | Per pupil net expenditure: £5,268 | Annual change: 7%
Local Authority: Kent | Per pupil net expenditure: £5,232 | Annual change: 7%
Local Authority: West Sussex | Per pupil net expenditure: £5,226 | Annual change: 8%
Local Authority: Isle of Wight | Per pupil net expenditure: £5,200 | Annual change: 5%
Local Authority: Windsor and Maidenhead | Per pupil net expenditure: £5,167 | Annual change: 9%
Local Authority: Hampshire | Per pupil net expenditure: £5,108 | Annual change: 7%
Local Authority: West Berkshire | Per pupil net expenditure: £5,029 | Annual change: 7%
Local Authority: Buckinghamshire | Per pupil net expenditure: £4,972 | Annual change: 7%
Local Authority: Bracknell Forest | Per pupil net expenditure: £4,922 | Annual change: 6%
Local Authority: Wokingham | Per pupil net expenditure: £4,614 | Annual change: 6%
Region: South East | Local Authority: South East | Per pupil net expenditure: £5,235 | Annual change: 7%
Local Authority: Bath and North East Somerset | Per pupil net expenditure: £7,690 | Annual change: 32%
Local Authority: Cornwall | Per pupil net expenditure: £6,847 | Annual change: 7%
Local Authority: Bournemouth, Christchurch and Poole | Per pupil net expenditure: £6,608 | Annual change: 43%
Local Authority: North Somerset | Per pupil net expenditure: £6,154 | Annual change: -6%
Local Authority: Torbay | Per pupil net expenditure: £6,071 | Annual change: 9%
Local Authority: Plymouth | Per pupil net expenditure: £5,874 | Annual change: -10%
Local Authority: Bristol, City of | Per pupil net expenditure: £5,790 | Annual change: 5%
Local Authority: Swindon | Per pupil net expenditure: £5,594 | Annual change: 10%
Local Authority: Somerset | Per pupil net expenditure: £5,500 | Annual change: 11%
Local Authority: Dorset | Per pupil net expenditure: £5,419 | Annual change: -11%
Local Authority: Gloucestershire | Per pupil net expenditure: £5,328 | Annual change: 7%
Local Authority: Wiltshire | Per pupil net expenditure: £5,324 | Annual change: 6%
Local Authority: Devon | Per pupil net expenditure: £5,148 | Annual change: 10%
Local Authority: South Gloucestershire | Per pupil net expenditure: £4,930 | Annual change: 4%
Region: South West | Local Authority: South West | Per pupil net expenditure: £5,537 | Annual change: 7%
Local Authority: Stoke-on-Trent | Per pupil net expenditure: £6,209 | Annual change: 16%
Local Authority: Shropshire | Per pupil net expenditure: £5,707 | Annual change: 9%
Local Authority: Wolverhampton | Per pupil net expenditure: £5,703 | Annual change: 10%
Local Authority: Birmingham | Per pupil net expenditure: £5,462 | Annual change: 1%
Local Authority: Herefordshire, County of | Per pupil net expenditure: £5,440 | Annual change: 8%
Local Authority: Staffordshire | Per pupil net expenditure: £5,321 | Annual change: 3%
Local Authority: Worcestershire | Per pupil net expenditure: £5,231 | Annual change: 3%
Local Authority: Dudley | Per pupil net expenditure: £5,078 | Annual change: 7%
Local Authority: Walsall | Per pupil net expenditure: £5,068 | Annual change: 8%
Local Authority: Sandwell | Per pupil net expenditure: £4,967 | Annual change: 4%
Local Authority: Warwickshire | Per pupil net expenditure: £4,959 | Annual change: 4%
Local Authority: Telford and Wrekin | Per pupil net expenditure: £4,955 | Annual change: 5%
Local Authority: Coventry | Per pupil net expenditure: £4,947 | Annual change: 3%
Local Authority: Solihull | Per pupil net expenditure: £3,863 | Annual change: -14%
Region: West Midlands | Local Authority: West Midlands | Per pupil net expenditure: £5,185 | Annual change: 3%
Local Authority: Kingston upon Hull, City of | Per pupil net expenditure: £15,640 | Annual change: -3%
Local Authority: North East Lincolnshire | Per pupil net expenditure: £8,043 | Annual change: -1%
Local Authority: Rotherham | Per pupil net expenditure: £5,883 | Annual change: 12%
Local Authority: Barnsley | Per pupil net expenditure: £5,762 | Annual change: 7%
Local Authority: Doncaster | Per pupil net expenditure: £5,551 | Annual change: 8%
Local Authority: Bradford | Per pupil net expenditure: £5,550 | Annual change: 8%
Local Authority: York | Per pupil net expenditure: £5,528 | Annual change: 6%
Local Authority: Sheffield | Per pupil net expenditure: £5,398 | Annual change: 11%
Local Authority: Calderdale | Per pupil net expenditure: £5,370 | Annual change: 5%
Local Authority: Wakefield | Per pupil net expenditure: £5,342 | Annual change: 6%
Local Authority: Kirklees | Per pupil net expenditure: £5,190 | Annual change: 4%
Local Authority: East Riding of Yorkshire | Per pupil net expenditure: £5,184 | Annual change: 6%
Local Authority: Leeds | Per pupil net expenditure: £5,177 | Annual change: 5%
Local Authority: North Yorkshire | Per pupil net expenditure: £5,172 | Annual change: 1%
Local Authority: North Lincolnshire | Per pupil net expenditure: £5,150 | Annual change: 6%
Region: Yorkshire and The Humber | Local Authority: Yorkshire and The Humber | Per pupil net expenditure: £5,370 | Annual change: 6%
Scotland has its own system of tax bands and rates. Here’s a breakdown of the brackets there:
| Personal Allowance | Up to £12,570 tax-free |
| Starter Rate | Earnings from £12,571 to £14,732 taxed at 19% |
| Basic Rate | Earnings from £14,733 to £25,688 taxed at 20% |
| Intermediate Rate | Earnings from £25,689 to £43,662 taxed at 21% |
| Higher Rate | Earnings from £43,663 to £150,000 taxed at 41% |
| Top Rate | Anything over £150,000 taxed at 46% |
The UK has a total workforce of about 30 million people, and well over a million of them have more than one source of regular income. That number is increasing too but not everyone affected by it is entirely happy about it. Whether they’re having to find extra cash because money’s too tight on their main job or they simply want to expand into other areas of work, more and more UK workers are taking on extra jobs.
There are a few important things to know about second jobs:
One of the basic protections we mentioned above is that you can’t be made to put over 48 hours a week into any one job. If you’re over the age of 18, you can decide for yourself to put in more time than this – but it still can’t be a necessity of the job.
If you qualify for tax credits or some other kind of benefit, taking on another job can obviously knock a hole in what you can get. With Universal Credit, for instance, the amount you claim drops as the amount you earn rises. You might be eligible for a work allowance, which is a bit like the Personal Allowance you get for Income Tax. If you're taking care of a child or have circumstances that limit how much you can work, you might qualify for an allowance of £287 if your claim includes housing support or £503 if it doesn't. Anything you earn below your allowance won't bring down your Universal Credit. After that, though, your UC payments will drop by 63p for every £1 you're earning.
Pretty much everyone paying tax in the UK gets a Personal Allowance. That’s the amount of money you can make in a year before paying any Income Tax on it. So, for instance, most people get a Personal Allowance of £12,570 for the 2022/23 tax year.
A Personal Allowance is linked to a single job, and you only get one. That’s why it’s generally going to be a good idea to make sure it’s linked to the job that pays you the most. Your second job will be taxed from the very first penny it brings in. If you have a job that pays under the Personal Allowance threshold, attaching your Personal Allowance to it means you won’t be getting the full benefit of your tax-free allowance. On the other hand, if you’ve got two jobs and neither pays more than the Personal Allowance, you can arrange to have it split between them.
Let’s put it in real terms. Dana has a main job paying £15,000 a year, and a second one that only brings in £5,000. Assuming she pays tax at the English, Welsh or Northern Irish rates, she’ll pay 20% Income Tax on the £2,430 from her main job that’s over her Personal Allowance. She also pays out 20% from everything she makes in her second job, since there’s no Personal Allowance attached to that. If her Personal Allowance were linked to her other job instead, she’d be wasting a massive £7,570 of it.
Another thing to watch out for when you’ve got more than one job is your tax band threshold. If your combined income from both jobs comes to over £50,000, you need to let HMRC know about it. The tax band you’re in will depend on the combined total income from all your jobs, but if you don’t talk to the taxman, then you’ll only be taxed at the basic rate on everything. If some of your income falls into the higher rate band, you’ll end up owing a chunk of extra tax at the end of the year.
Self-employed people generally have the same tax-free Personal Allowance as on-the-books workers. For the 2021-22 tax year, for instance, that means that the first £12,570 of profit they make in a year is completely free of Income Tax. Like with Capital Gains Tax, it’s only the profit you’re making that HMRC wants a bite out of. When you fill in your yearly Self Assessment tax returns, a lot of the day-to-day essential costs of running your business will count against the profits you’re being taxed on. Simply put, the more you’re spending to do your job, the lower your tax bill.
The Self Assessment system is designed to be as simple as possible to use. Even so, you’ve got to understand the tax rules to make sure you’re not overpaying – or worse, storing up serious trouble by paying too little. If you need to get a refund and you file your returns online, you can log into your Self Assessment account to check your calculation and request a repayment. If you’ve got a Personal Tax Account or a Business Tax Account, you can do the same through those.
For those who file their tax returns on paper, there’s still a decent chance that HMRC will refund you automatically – assuming they realise there’s a problem. Failing that, you can write to them directly. It’ll probably take a couple of weeks to get your money refunded, either by cheque or to the card you paid with.
Get in touch with us and we can give you expert advice and if you need us to we can talk to HMRC on your behalf to try and get things straightened out.
There’s a chance we can reduce your debt and even get you a refund. Often people find that their refund will be big enough to clear the debt and still leave them with a little extra. While that's not such good news as getting to keep your whole refund it does give you peace of mind that the debt is gone and there are no fines or interest stacking up. With that cleared you'll be able to claim again next year and keep all of it.
If the debt is too large to be covered by any refund we can help arrange a payment plan for you or for you to pay it back through your tax code throughout the year.
Genuine mistakes do happen as well, so we can investigate and find out if that is the case.
There are lots of reasons that people might have unknowingly underpaid their tax. The important thing is to be able to show HMRC if it was an honest mistake as soon as you can. Showing willingness to get things sorted out will go a long way.
The one thing you shouldn't do if you think you owe HMRC money is ignore them. They will pursue it and the longer you leave it the worse it will be when they finally catch up with you.
Read more about what happens if you've underpaid tax.
You can't claim tax relief just for using Self Assessment. However, depending on the kind of work you do, there are many kinds of allowable expenses you can claim for. In general, any essential costs of running your business could count against the profits you pay tax on.
Self Assessment is a system HMRC uses to collect Income Tax in the UK. Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a self assessment tax return.
It's not just the self-employed who need to worry about Self Assessment tax returns. You’ll need to submit one if:
Find out more about Self Assessement Tax Returns.
If you’re self-employed, freelance, contracting or working CIS in construction, this will be handled under your expenses in your self-assessment tax return in the normal way.
The same principles apply though, you will need to be able to provide evidence of what you’ve spent in order to claim them as costs. Keep your meal receipts in the same way as you keep all your other records needed for your tax return.
Self-employed people work out their taxes through the Self Assessment tax return system. This means they don't claim refunds from HMRC in the same way as employed people. However, if you're self-employed, there are still lots of unavoidable expenses that can bring down your tax bill. Under Self Assessment, your essential business costs are counted against the profits you’re being taxed on. If what you’re spending on your work clothes is necessary to do your job, then you should be declaring the amounts in your tax returns.
Let’s assume you’re getting rid of your vehicle altogether. All you need to do to set the wheels in motion on your VED tax refund is let the authorities know that your vehicle’s off the road. In this case, that means talking to the Driver and Vehicle Licensing Agency (DVLA). The paperwork involved depends on whether you’re selling the vehicle or scrapping it at a recycling centre. You can use:
Lawyers and accountants are pretty good examples of service credit, when they only charge once the case is over or the paperwork’s finished. By doing the work up-front, they’re essentially offering their customers a line of credit for the duration of the job. Sometimes that means paying up what’s owed at fixed intervals, if the work is ongoing. If you don’t keep up the payments, though, the service gets cut off.
There are actually a lot of commonplace service credit deals that we don’t tend to think about. Again, telephone and utility bills can be put into this category if you’re on a scheme where you pay in arrears for what you’ve actually used.
It’s definitely worth setting goals for yourself whenever you have to make a major money decision. You can’t start by picking the type of property you want and then working out how you can afford it. Instead, start by looking at what kind of mortgage you can get, then use that figure to see what you can buy with it. Remember – goals are important, but they need to be realistic from the outset.
Once you know how much you’ll need as a deposit, it’s time to start saving toward it. Again, setting a specific goal will help you to focus on saving. If you’ve never needed to save serious cash before, it’s a good idea not to get too ambitious too fast. That doesn’t necessarily mean dropping your target, though. Just be realistic about how far away it is and how long it’ll take you to get there.
Setting up a simple standing order into a savings account is a great way to get started. If you set it so the money goes out on your monthly payday, you’ll probably hardly notice it.
Sometimes, the most obvious solution to a problem is still the best one. If it’s looking like you can’t afford to seal the deal on a new home purely out of your own pocket, why not go in with a partner, mate or relative? It’s simple maths; all things being equal, just one more person helping to put together your deposit will cut the time it takes to save it in half. If you’re not too bothered about the amount of time it takes to get your deposit sorted, you can simply bring down your monthly savings target a bit to give your month-to-month finances a bit of a breather. It works either way.
Labour cost estimates for home repairs can vary quite a lot, so it’s worth scouting around a bit instead of blindly accepting the first quote anyone throws at you. You’ve got a few things to weigh up here while you’re pricing out your job. Yes, finding someone who’ll work cheaper is a good move in general – but you’ve also got to consider the quality of the work you’ll be getting for your cash. Testimonials from other customers, whether they’re glowing or damning, are always worth taking seriously. Also, a glance through the Check a Trade website will help you do a proper price and service comparison.
Shopping for food definitely comes out of the “everyday essentials” section of your monthly budget. That doesn’t mean you’ve got no control over the cost, though. There are plenty of simple, effective ways to bring down your bills.
Here's a few examples
Tracking all your essential work costs might sound like a lot of effort, particularly in such a demanding line of work as healthcare. If you're overstretched already, you could scrap the paperwork and just use HMRC’s pre-calculated Flat Rate Expenses system instead. Basically, these figures take an educated guess at your yearly costs, allowing you to use HMRC’s estimates instead of working out your actual costs when you make your claim. You probably won’t get back everything you're owed, but it can be a little simpler—and a lot better than leaving your refund in HMRC’s hands.
With a SIPP, the tax main relief you get comes when you actually pay money into it. It sounds strange, but the government actually “tops up” the cash you pay in by the amount of tax you paid on that cash when you earned it.
So, assuming you normally pay tax on your income at 20%, if you paid £80 into your SIPP, HMRC would add another £20 on top – a total of £100 overall. That £20 basically refunds the 20% tax you were charged on £100 of your earnings through the PAYE system or your Self Assessment tax return. Of course, not everyone pays tax at the basic rate. If you’re charged a higher tax rate on some of your income, you can claim the extra 20% or 25% back through a tax return.
You can pay any percentage of your yearly income you want into your SIPP, but there’s a hard limit on the actual tax relief you can get. If you pay more than £40,000 into your SIPP in a year, you won’t get any top-ups from HMRC on anything over that amount. However, if your contributions don’t hit the £40,000 threshold, you can “carry forward” your unused tax relief for up to 3 years, basically stacking it up for future use. You might find this particularly helpful if your earnings tend to change from year to year – if you’re self-employed, for instance. If you can’t save up to the £40,000 threshold in one year, but earn enough to go over it the next, carrying your unused tax relief forward means you don’t miss out.
Unlike SIPPs, you don’t get any tax relief on the money you pay into an ISA. As a result, technically speaking, the after-tax cost of paying into a SIPP is much lower. ISAs also have an annual allowance of £20,000 for paying in, which can be split freely between any ISAs you have. The only exception is the Lifetime ISA, which you can only put £4,000 per year into at most (earning £1,000 in top-ups from the government).
While the rules vary between specific ISAs, they can offer quite a bit of flexibility over how you get your hands on your savings. Because a SIPP is a pension, though, you’re a lot more restricted in that respect. For one thing, you can only access your money after the age of 55 (or 57 after 2028). Even then, there are some rules to keep in mind. Only 25% of your pension pot can be withdrawn tax-free, for instance. You’ll be paying your normal rate of tax on the rest when you access it. This is kind of a “swings and roundabouts” situation. Obviously, at first glance, it seems like a pretty huge drawback compared to an ISA. However, if you’re saving for your retirement, that extra restriction can make it a lot less tempting to pull your cash out early. In the long run, you could be glad you didn’t have such easy access to your savings as you would have had in an ISA.
Balanced against that, of course, is the fact that your SIPP savings might not be be available if you ever need them in a hurry. The flexibility of an ISA is great for taking care of unexpected emergencies. Also, if you’ve got shorter-term goals in mind (like saving for a house deposit), that easy access could be exactly what you need. Overall, then, SIPPs can be a really good way of investing in your long-term future. For non-retirement saving, an ISA will probably be the better choice.
Of course, even though saving toward any target requires focus and determination, no one ever said you could only have one goal at a time. If you’re saving for your first home right now, but still have an eye on your eventual retirement, then a combination of SIPP and LISA savings options could help you hit both targets. The exact combination will obviously depend on your situation and aims. If you already own your own home, for instance, paying into a SIPP or workplace pension will help bulk up your retirement pot faster. If you need a new car, on the other hand, an ISA will get you on the road more efficiently, with easier access to your savings. Striking that balance is the key to making the most of your savings, so always start by working out exactly what you’re trying to achieve. Clear goals are always easier to reach than vague ideas.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
The Nest doorbell will work with almost any kind of door, and has either wired or battery-powered options to pick from. Its camera can be set to alert you whenever it detects activity, so you can either answer the door in real time or have it trigger pre-set messages. It can even tell the difference between people, packages, animals and vehicles, with HDR and night vision capabilities to keep the image clear in difficult conditions. You get 2 hours of event history as standard, but can boost it to 30 days with a £5 monthly/£50 yearly Nest Aware subscription. For £10 a month or £100 a year, you can ramp that up even further to 60 days of history with Nest Aware Plus.
Another big name in the smart doorbell world is Ring. The 2nd Gen model boasts a built-in rechargeable battery, real time notifications and a live view option. Tech-wise, it’s got 1080p video and 2-way talk, along with a souped-up motion detection system. If you’re already an Alexa user, the fact that Ring plays well with your existing set-up is a nice plus. The Basic Protect plan offers 30 days of video history for £2.50 a month/£24 a year. You can bulk that up to Protect Plus for £8 a month/£80 a year for assisted monitoring and cellular backup options. This is basically the cheapest way to hook your home up with a smart doorbell, both in terms of the up-front and ongoing costs.
The Arlo doorbell features direct video calling, 2-way audio and a siren for emergencies. It’s got an HD camera with night vision capabilities and runs off a rechargeable Li-ion battery. When someone triggers the bell, the system calls your mobile directly, and you can hook it into your existing mechanical or electrical chime. It’s a mid-priced system that works with both Google Home and Alexa, and its cloud history subscriptions will run you £2.79 a month for 30 days or £12.99 a month for 60 days.
With this kit you get 2 smart bulbs, a bridge (to let you control them remotely) and a 2-year warranty. The phone app they use lets you set timers, alarms and notifications, and you can set them up for voice control through the usual suspects, Alexa, Google Home and Apple Homekit. These bulbs are built for A+ energy efficiency and have a handy dimmer function.
With a 2-year “Promise and Professional Support” service, these bulbs are designed to work with Alexa, Google Home and IFTTT (If This Then That) systems. You don’t need a separate bridge to use features like voice control, and they have customisable “wake up” and “sleep” functions to gradually come on or dim over a set period. You can set up timers and schedules with the Sengled Home app, and they can last almost 23 years at 2.7 hours of use per day. That makes them 80% more efficient than traditional incandescent bulbs.
This is another option that works with your existing Alexa, Google Home or Apple Homekit set-up. More than just a basic light bulb, the LIFX Mini can shift to over 16 million colours under your control, with no bridge required. You can use either the app or your own voice to control the bulbs – saving energy by dimming them when needed, for instance. Again, these bulbs have an impressive LED lifespan, estimated at 22.8 years if you use them for 3 hours per day.
Setting up a smart home isn’t as complicated or pricey as you might expect. It could pay off pretty well in energy savings in the long run, too. Check back here for more hints, tips and updates. We’re here to save you money and keep you safe, so you know you’re always better off with RIFT.
For most people, getting a smart meter fitted is just a matter of asking their energy supplier to put one in. They’ll install it, set it up, check it’s working and explain how to use it. If you really want to get the best out of the monitor that comes with it, though, you should definitely hang onto the instructions. Any features it has, like setting up target budgets for your energy use, will only help you save money if you get to grips with them.
Depending on how you pay for your energy, your smart meter could be set up in either of 2 ways. Credit mode is your standard set-up, where you pay for the energy you’ve already used, generally by regular direct debit, with the terms set by your supplier. The good thing about this is that you won’t suddenly find yourself cut off, unless you’ve built up a major debt over time. You’ll also often find slightly better deals with this system. Basically, it’s more common than prepayment deals so you’ll tend to have more options in terms of tariffs and suppliers.
With prepayment meters, as you’ll have guessed from the name, you’ll be paying up-front for your energy, then burning through your available credit until it’s used up. If you still need more, you have the option to top up your prepayment for a short-term boost. You can pay with your usual bank card, with vouchers or through a payment key that you “load up” with cash in advance. You can buy credit at places like local shops or post offices, or from your supplier’s website. In a lot of ways, it’s like a pay-as-you-go mobile phone contract.
This system can be good if you’re budgeting your energy use, since it’s harder to overspend than with a standard credit meter. Simply put, you can’t use more energy than you’ve already paid for. The less-great side to it is that it tends to be more expensive, with fewer tariffs and suppliers to choose from. Even worse, you’re looking at a fairly swift cut-off of your energy supply if your credit runs out. Remember – even when you’re not using any energy at all, you’ll still be racking up daily standing charges for having your supply connected at all.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
We’re all having to take a closer look at our energy consumption these days, whether we’re working to bring down our household CO2 footprints or just battling rising costs. One of the key tools in this effort, we’re often told, is the humble smart meter – but what are these devices actually good for?
Realistically, all a smart meter does is send information about your energy use directly to your supplier. They’re convenient and accurate, and work well to take the guesswork out of your billing. Really though, most of the benefit you get from having one fitted isn’t actually about the meter at all. It’s the monitor you probably tucked away in a kitchen cupboard that stands to do you the most good.
So, whatever you’ve heard about smart meters “magically” saving you cash just by being there, that’s really not how they work. Instead, you can use that little monitor to build better energy habits around your home – potentially cutting your bills by as much as £10-£20 a month. At the same time, if you’re concerned about your greenhouse gas emissions, you can keep an eye on those as well. As long as we’re saving cash, we might as well save the world at the same time!
So, no – a smart meter won’t bring your energy bills down on its own. What they’re great for, though, is giving you the information you need to manage the energy you’re actually using. You’ll see in more-or-less real time, for example, the actual financial impact of boiling a kettle or running a bath. We’ve talked before about how the most effective way to save on costs like electricity and heating bills is to make small, consistent changes that stack up their benefits over time. Ridiculously simple day-to-day changes like switching devices off instead of leaving them on standby can make a real difference to your bills if you stick with them. Everything from turning off unneeded lights to nudging down thermostats can help, and your smart monitor will give you real-world feedback on the savings you’re making.
Your smart monitor can also help you budget for your energy use, by setting targets for how much you’re prepared to spend per day. Again, it’s all about making small, meaningful changes that you can stick to. The better the information you’re working with, the more effective your saving will be.
If there’s one way that a smart meter can help to bring your costs down on its own, though, it’s by keeping your supplier up-to-date on your actual energy consumption. If you’re used to your bills being based on estimates and averages, then you could stand to save quite a lot of money by switching to a smart meter if your supplier supports them. Keep in mind that not all energy firms are set up to accept automatic readings, so there’s a chance you might still have to send them in yourself. If it saves you money, though, that little inconvenience might be a small price to pay.
Checking your daily energy use with your smart monitor is a good habit to build. It’ll help you set targets for cutting costs and make your household budgeting a lot easier. According to a 2019 report from Smart Energy GB, 85% of homes that switched to smart meters ended up saving on energy. There’s real power in getting that at-a-glance information, but you really do have to get comfortable using it to make decisions and changes.
It’s difficult to recommend swapping energy suppliers in a crisis, even though it’s generally sound advice to look around for the best deal. With the cost of energy soaring, though, even auto-switching service Look After My Bills is telling its customers to sit tight until things are less unpredictable.
Even so, having a smart meter can still put you in a better position whether or not you’re able to switch supplier. A lot of energy firms have tariffs and deals you can only qualify for with a smart meter fitted, so you’re opening up your options for a better offer down the road. Also, the extra information you get from your smart monitor will help make picking out those better deals a lot easier in the first place.
“Couponing browser extensions” might sound like something complicated.
But they’re really simple. They’re Apps you add on to your internet browser that automatically search for coupons when you add something to your basket on a shopping site.
Honey is perhaps the best-known.
Add it to your browser and, when you add something to a shopping cart on one of their recognised sites, and it searches for working codes. When it finds them, it adds them to your transaction automatically.
Honey also has a cashback programme – Honey Gold, which gives you points on selected purchases from their big brand partners.
Voucher Codes also has a browser extension app that’s worth checking out – Dealfinder.
Get paid every time you spend! But be careful: the key is to pay off your credit card in full every month so you don’t pay any interest.
So, for example, if your card pays out 5% cashback on purchases, and you buy a £500 mobile, you’ll get £25 back. That’s a nice little earner.
You can build up your cashback over the year – it’s usually paid out annually in the month you took out the card and appears as a credit in your account. Some cards pay out cashback monthly too. Others convert your cashback to store vouchers which may be worth more.
It’s worth having a look around and comparing cards to see what’s best for you because the devil is in the detail: some cards offer different rates of cashback depending on what you buy, or if you pay contactless. There may also be introductory rates too which taper off with time. Or rates that increase the more you spend on your card.
One way to maximise your cashback is by using your credit card for every day spending. BUT! Always check if there’s a fee for paying buy credit card – this might wipe out the benefit – AND! Always repay in full. You don’t want to pay any pesky interest!
Great for saving energy and maximising your comfort. You can use this with pretty much any normal gas or oil heating system. It even works with hydronic underfloor heating. Best of all, if it doesn’t end up saving energy for you, you can get your money back.
The cool thing about this system is that it learns from you. It watches the way you use it and gets to know how warm you like your home. When you’re away, it shuts the heating off to save energy and money. In fact, it can even use its own sensors and your phone’s location service to switch on its energy saving features while you’re not at home. The app also allows you to control your heating and hot water yourself, wherever you are, and gives you a breakdown of what you’ve saved.
This is the UK’s favourite smart thermostat, and again it works perfectly with your existing heating system. You can control it through your phone, or even just with your voice. Heating an empty home is a serious waste of money for many families. Given that you can save an estimated £110 per year with Hive, it pays for itself surprisingly quickly. Comes with the option to set your own energy saving targets, along with a boost setting with an automatic shut-off.
Time, as they say, is money. And these days, when money is on everyone’s mind, not a lot of us have time to shop around.
And what happens if you do spend a lot of time looking for the right item at the right price only to realise it’s not available or the postage costs mean it’s not the most affordable option?
If you’re not all over the Shopbots, you’re missing a trick!
Comparison sites crawl the internet looking for whatever you ask them to. And they’ve very easy to use:
All search a wide range of the best-known retailers. Google Shopping also searches eBay and deals sites such as Groupon. You can also sort results with or without postage, for example.
Our favourites are:
Give them a try!
Ever had that sinking feeling when you buy something and the find out that it’s discounted somewhere else??
Again, finding the good deals all comes down to doing your homework. And again, the good old internet can do a lot of your homework for you!
Check out our top three daily deal and voucher finder websites…
Follow them on Twitter or Instagram to keep up to date.
It doesn’t always work but it’s definitely worth a try!
People abandoning their basket right at the point of purchase is a real issue for online shops. Some experts say that almost 70% of baskets online are abandoned before checkout! That’s a pretty high number and often because people are filling baskets on several sites to see what the total is. Clever people!
To get around the issue of abandoned baskets, lots of retailers use technology to entice you back. They’re alerted when you don’t complete a transaction and might send you an email to encourage you to come back and buy!
We’re not saying it happens every time. You might get a notification to say you left something behind… or you could hit the jackpot and be offered a discount or free postage.
In the case of larger items – like a sofa or a holiday - the savings can be significant.
Specialised work clothing sometimes actually means things like safety gear. Keeping things like helmets, goggles or protective gloves in good order is obviously essential to your work. If you're paying for this yourself and not getting reimbursed by your employer, then you should qualify for tax relief. You still can't claim tax back against the initial cost of buying them, though.
Also, you may find that the clothes you wear to work may sometimes be different from those you wear at work. A PE teacher, for example, might show up in the morning in normal clothes. Actually doing the job, however, might mean changing into a sports kit later in the day. The kit is an essential part of the work, so would usually entitled the teacher to tax relief.
Usually, yes. The only exception is when your club has paid you the full 45p per mile, tax-free, for the first 10,000 miles in a year and 25p per mile for anything over that. If they've paid less than that, e.g. 10p per mile, then you can claim the difference.
Use our tax calculator to find out if you are due any money back.
You may be able to claim for training depending on several factors, including time spent at training and the mileage from the home ground or cost of public transport to get there.
Use our tax calculator to find out how much you could be due back.
Many sports professionals have a full-time or part-time job to supplement their income, and may earn additional money by coaching or instructing their sport. If you become very successful then you may earn additional money through things like sponsorships or advertising contracts – all of which you’ll need to declare to HMRC through submitting a self-assessment tax return.
As long as you pay tax on your earnings we can look into making a claim for you.
Stamp Duty Land Tax (or SDLT) is a tax you have to pay when you buy land or property that’s worth over a certain amount. It applies in England and Northern Ireland, with Scotland and Wales running their own similar systems. Scottish homebuyers, for example, pay Land and Buildings Transaction Tax, while the Welsh pay Land Transaction Tax for sales completed after the 1st of April 2018.
So, what are the Stamp Duty Rules? Well, you have to pay SDLT when you:
You won’t have to pay Stamp Duty automatically on any property or land you buy, though. There’s a threshold where the tax kicks in, based on the type and value of the property you’re dealing with. For the 2022/23 tax year, for instance, residential properties worth under £125,000 don’t get hit with Stamp Duty. The same goes for non-residential land and property worth under £150,000.
If you’re a first-time buyer, though, things get even better. First-timers buying a home won’t pay SDLT unless their property’s worth over £500,000.
So, what does a savings plan look like when you’re saving to buy property in your 20s? Well, the first step is to work your basic budget. This means adding up everything you earn in a year after tax and deciding how much of it you can reliably save. One trick we talk about a lot in these guides is the “50/30/20” principle. It’s a simple rule to follow when you’re building your first budget. You allocate 50% of your total income to essential things (costs you can’t realistically bring down), 30% goes toward “discretionary” spending (the fun stuff that makes life worth living) and the remaining 20% is what’s left for saving.
You can play with the numbers a bit so they fit your situation, but the point is to take direct control over your cash, getting into the habit of putting a set amount aside each month toward your goal. Click the button below to read more about basic budgeting tips.
Read our guide: Saving Strategies
You can read more basic budgeting tips in our guide, “4 Fixed Income Saving Strategies — Combine to Win!”
A P45 is the form you get when you leave a job. It shows how much tax you've paid so far in the current tax year, and it's used by your next employer to work out what tax code you should be on.
A starter checklist is the form used when you don't have a P45 to show your new employer for some reason—perhaps because this is your first job in the tax year. As with the P45, though, it's used to make sure your tax code's correct for your new job.
If you don't have a P45 when you start a new job, you'll need to fill in a 'starter checklist' instead. This form will allow your new employer to make sure you're on the right tax code. Your starter checklist will ask you if this is:
If you've got any taxable benefits or pension income, you'll be asked about those, too—along with some basic financial questions, like whether or not you're paying off a Student Loan. Once you've answered the questions, your employer should have enough information to work out your tax code. Being on the wrong tax code can lead to a lot of headaches, so it's important to make sure you give the right information in your starter checklist.
Blackpool is home to the most affordable accommodation cost at an average daily rate of £159 per day versus £221 in The Cotswolds which was the most expensive.
The Lake District is the most affordable day out at £33 for a family of four, versus £180 in Blackpool
Blackpool also ranked as the cheapest destination for a pint (£3.30), while Brighton ranked as the least affordable (£5.90)
As with the cost of a pint, Blackpool was home to the most affordable fish and chip supper (£10.48), with this cost climbing to £13.06 in Brighton!
The Lake District and Blackpool ranked joint top for overall affordability with a score of 4.26. Brighton ranked as the least affordable destination overall, scoring just 3.67.
Blackpool was home to the most affordable accommodation cost at an average daily rate of £126 versus £162 in Brighton which was the most expensive.
Dorset was the most affordable day out at £50 for a family of four, versus £116 in Blackpool.
Blackpool also ranked as the cheapest destination for a pint (£3.25), while Brighton again ranked as the least affordable (£5.35)
As with the cost of a pint, Blackpool was home to the most affordable fish and chip supper (£9.06), with this cost climbing to £12.68 in Brighton!
Not necessarily. The HMRC rules say you can claim back your money for up to 4-years, so it may not be too late. Even if you've never even thought of claiming before, you could still get back what the taxman owes you. A full 4-year tax refund can add up to literally thousands of pounds, so it really isn’t something you want to miss out on.
Stocks & shares ISAs are another kind of savings account, but instead of paying basic interest on your balance, the money’s invested in things like equities, bonds and investment trusts. There’s a hard-and-fast limit on how much you can put into your ISAs, coming to £20,000 per year. That total covers any and all ISAs you have, but any gains you get on that amount come free of tax. So, for instance, if you’ve already pumped £15,000 into a cash ISA in this tax year, you can’t then put more than £5,000 into a stocks & shares one without going over the limit.
One of the main reasons why stocks & shares ISAs are so popular as an alternative to cash savings is that the potential for growth can be pretty high by comparison. When interest rates are generally low, for instance, having your savings invested in stocks and shares can really make a difference. Of course, the down-side of saving this way is that the equities your cash has been invested in can go down in value, meaning you could stand to lose your entire stash if the worst came to the worst. Even if you don’t lose everything, you can have still a lot of value wiped off your investment if your stocks crash. Massive economic shocks like the COVID-19 pandemic can potentially take years to crawl out of. In the meantime, you could be stuck with less money than you started with.
It’s worth remembering that investment really isn’t a get-rich-quick game. Over the longer term, stock market investments will still tend to perform better than most kinds of cash savings. You can also manage the amount of risk you’re shouldering by spreading your investments out over a wider range of stocks and shares. You can never eliminate every trace of risk, but a few smart decisions made early on can set yourself up with the best chances of success.
Cash ISAs are a lot like traditional savings accounts. As with all ISAs, there are limits on how much you can pay in each year, but the good news is that you don’t pay any tax on your interest. Depending on the type of cash ISA you pick, you might have instant access to your money and a variable interest rate or a fixed rate of interest and some restrictions on how you get your hands on your money. With some ISAs, you need to lock your money away for a set time and then receive a set pay-out at the end. The longer you lock the cash up, the more interest you’ll generally get.
Cash ISAs are usually seen as a reasonably safe bet, since you have a pretty good idea of what to expect from them going in. It’s worth remembering that your investment could still be losing money in real terms if the interest doesn’t keep up with the rate of inflation, though.
Stocks & Shares ISAs still protect your returns from the taxman. However, your money’s invested in a range of investment types, from individual shares in businesses through to government bonds. Depending on how you want to set it up, your ISA can either be managed for you (for a fee) or you can choose where your money gets invested yourself.
Obviously enough, diving straight into paid work out of school can give you a bit of a leg-up on the savings front. If you can keep on living with your parents for a while, that advantage gets magnified since you probably won’t be hit so hard by “overhead” costs like rent and bills. In turn, that should give you more disposable income – and with it, more headroom to save money. Even so, you’re still going to need to get into those good saving habits if you’re hoping to make the most of your financial head-start.
We mention the “50/30/20 rule” quite often in these articles, and there’s a good reason for that. If you’re trying to save money in a simple and reliable way, then making good budgets is the key. If you haven’t already read our article, “4 Fixed Income Saving Strategies - Combine to Win!” then here are the basics. Divide up your income into essentials (50%), wants (30%) and savings or debt repayments (20%). Simple, right? Just stick to that and you’ll be well on your way to hitting your first savings goals.
Saving strategies for fixed incomes
Let’s look at some actual numbers next. An average 18-21 year-old in the UK earns £18,392 (for men) or £17,005 (for women). So, if we take the average of those, we get £17,698. Obviously, you’ve got your Personal Allowance and taxes to factor in as well.
The figures of the 50/30/20 system break it down like this:
Naturally enough, if you’re paying your own way for living expenses then your actual costs will probably look very different from someone still living at home. The same goes for people paying their own travel costs rather than getting lifts from Mum and Dad. It might turn out that your essential living expenses eat up less than the 50% of your take-home you’ve allocated to them, allowing you to save more. Either way, planning where each chunk of your income’s going is the core of good budgeting.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
This is a fantastic tip for getting your money under control. The 50/30/20 system is designed to give you the clearest possible picture of your money situation, and it’s surprisingly simple.
Here's how it works:
This last 20% of your income should also include an emergency fund. Ideally, you’re going to want to end up with somewhere between 6 and 9 months’ worth of essential costs in here. So, if your unavoidable expenses come to £1,000 a month, you’re going to want to sock away £6,000-£9,000 in your emergency fund savings account. In fact, the anti-debt charity Step Change says that even having £1,000 saved could stop half a million of us from landing over our heads in debt.
Once you’ve got your emergency fund sorted, you can start looking into other saving goals.
Student loans can either come from the main Student Loans Company or a separate, private lender. In fact, it’s perfectly possible to have both at once, if you qualify for them. Agreements from the Student Loans Company tend to be more common, though, since they’ve got specialised features like income-dependent repayment plans and even ‘forgiveness’ in certain circumstances. Like other types of lending, student loans from a private lender will usually involve getting credit-checked to make sure you’re a safe bet for the company, and the terms you’re offered (repayment plans, interest rates, fees, etc.) will depend on the lender.
Whether you’re buying or selling, a property’s condition is an important factor. That’s where surveys come in – along with the price you pay for them. A professional surveyor comes in, checks the property over thoroughly for problems that need fixing, and makes a full report. It’s a specialised and critical job, so you’re looking at anything between £400 and £1,425 on average to get it done. A lot depends on the size and price of the property itself, along with its location and the kind of survey you’re paying for.
Generally speaking, it’s the buyer who foots the bill for this kind of work, after the seller has accepted their offer. There’s a slightly different system in Scotland, though, so check the rules to see where you stand.
Once you’ve made sure you’re claiming all the help available to you, it’s time to get your money organised. Start by collecting up all the important documents you’ll need. We’re talking about bills, statements, receipts, payslips and so on – anything that’ll help you pinpoint exactly where your money’s coming from and where it’s going. Keep an eye on your bank balance throughout the month so you’re never caught by surprise by an automatic payment that leaves you shorter than you’d realised.
It’s worth being systematic about this. For instance, you might find it helpful to set some time aside each week to look through your finances, pay any outstanding bills and check how you stand. You’ve already noted down any particular times when you’re likely to overspend, so this is where you start using that information to make your financial planning easier and more effective.
Before you know it, you’ve already made your first real budget. Now it’s time to get into the real details. Look at your regular costs, and sort out the essential ones from the ones you can actually control. Essential costs would include things like your rent or mortgage payments, energy and phone bills and your Council Tax. If you’ve got debts racking up interest, remember that they’ll almost always mount up faster than the interest on any savings, so it’s a smart move to pay them down first before you start socking extra cash away.
If you need to get a tighter grip on your spending, ditch the plastic and try going cash-only for a while. We overspend so often because it’s being made easier to splash out all the time. At the start of the week, take out the amount of money you can afford to spend in cash, and stick to the limit. At any time, a quick glance through your wallet will give you an instant running total of what you have left to spend. For your essential costs, setting up Direct Debit payments will help make sure they don’t stack up. If you’re still struggling, get some of the debt advice we suggested earlier – and take a look at the government’s Breathing Space service to see if it can help. Speaking of breathing space, while you’re doing all this, make sure to give yourself a moment to take stock of how you’re feeling. Track how your mood changes as your finances improve. You might be surprised how much tackling one can improve the other.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
It doesn’t have to take a huge effort to save money on your gas and electricity bills. The important thing to realise is that you’ve got a lot more control than you think. Even when energy prices are skyrocketing, a couple of smart decisions at your end can keep things from going off the rails. Sometimes that’s going to mean making changes, like switching energy suppliers, tariff deals – or even just the brand of batteries you’re buying. It’ll all be worth it when the bills roll in, though.
Take stock of what you’re doing right, and look for ways to do even better. The chances are, it’ll take a spot of trial-and-error when tweaking your thermostat and radiators before you find the right balance between comfort and cost. Keep searching for the sweet spot and you’ll be surprised how much you end up saving. Don’t be afraid to experiment - and consider whether slipping on a jumper might be better than bumping up the heating for the whole house.
The important point is that most of the real decisions are in your hands, not your energy supplier’s. Take responsibility for cutting down the waste, take control of the cash you save and take pride in making the right choices for your wallet, your family and the environment.
Keep checking back here for more tips and updates. We’re experts at saving you money and we’re always here to help. That’s why you’re better off with RIFT.
It’s absolutely fine to treat yourself so often but, while a simple takeaway holds a place in most of our hearts, ordering in food several times a month can be pretty costly across the year. A lot of food delivery places have a minimum order that’ll see you spending more than you would otherwise, too. If you live alone, for instance, buying extra to make up the value is as bad for your wallet as your waistline.
Takeaways tend to have busy and quiet periods during a week, so ordering on specific days can actually grab you some surprisingly tasty discounts. JustEat, for instance, will give you 20% off the price of your order on Tuesdays. Meanwhile, Dominos tends to run a “Two for Tuesday” deal which can also save you a fair bit of cash.
Our takeaway tips
This last tip is really more like a bit of general advice that most of us should be taking more seriously. Saving at any age can be difficult – although, strangely, it’s usually easier when you’re young since you won’t yet have stacked up a lot of the ongoing costs the older crowd’s dealing with. The only real trick to it is to treat it like paying a bill in advance. Whether you’re socking away cash for a home, a car or your own retirement, wherever possible you should be putting it into your savings as soon as you get it. It’s a mistake to think of it as “spare” or “leftover” money. It’s an essential part of your whole financial world, and needs to be respected – not blown on extra takeaways or nights out.
If you’re struggling to scrape any kind of regular savings out of your earnings each month, or simply want to give yourself an edge, try looking into the range of free money-saving apps available. Many of them make the process automatic with features like round-up saving. This is where you actually save money whenever you spend it, by automatically “rounding up” your spending to the nearest pound and sticking the change into a savings account. It might not sound like a lot, but over time you can put away some serious cash this way.
Choosing the right tax advisor can be critical when you’re making big decisions about your money. It’s not always easy to know who to trust, and which kinds of questions you should be asking. At their best, tax advisers can use their expertise to boost your finances and help you save effectively for your family’s future. At their worst, though, they can range from poorly qualified to outright scammers. A few smart questions at the start can save you a lot of problems later on.
So, what do tax advisers actually do? Well, for starters they can help you put away enough cash for a comfortable retirement – something that a lot of us have trouble budgeting for throughout our working lives. Depending on your personal situation, they can also show you how to invest properly, balancing the risks against the potential rewards while protecting your cash, or help when you’re house-hunting or taking out a mortgage. They can even help you maximise the benefits when you get a sudden cash windfall, like an inheritance or redundancy payment.
One thing that’s worth keeping in mind is that, when we’re talking about money, there’s a big difference between “advice” and “guidance”. When a charity or other organisation says it offers financial guidance, they mean they can talk you through the various options you can pick from. They won’t (or at least shouldn’t) get into the specifics of recommending any particular product, or steer you in any one direction. Financial advice, on the other hand, gets right into the gritty details. An adviser will explain which option they believe will suit you and your money the best.
Why does this difference matter? Simple – it’s a question of protection. Organisations offering guidance aren’t regulated by the Financial Conduct Authority (FCA). That means if things go wrong you probably won’t be able to go to the Financial Ombudsman for help. You probably won’t be able to claw back any lost money through the Financial Services Compensation Scheme, either.
What this all adds up to is that you have to pick your tax adviser with your eyes open. Make sure whoever you’re working with is covered by the FCA and you should at least have some protection if the wheels come off.
The next thing to know is that not all financial advisers will offer the exact same range of services or expertise. If you talk to an independent financial adviser (IFA) about investment options, for instance, they should have a wide range of products for you to think over. They’ll help you find one that closely matches what you’re looking to accomplish with your money, without trying to push you toward any specific company. Basically, they’re supposed to be unrestricted and unbiased in their advice.
A “restricted adviser”, on the other hand, will definitely try to pull you in a particular direction. In fact, they basically have to. A restricted adviser is limited to recommending only specific providers or products – so it’s really important to know who you’re dealing with.
Restricted advisers aren’t trying to cheat you, but they aren’t able to offer unbiased advice. They do, however, have to be up-front about that. That means they can’t call themselves independent and they need to explain exactly what their restrictions are. If you’re not 100% sure, always ask them for more details. Some examples of restricted advisers’ limitations include:
While a restricted adviser must let you know that they’re not giving to give you a complete picture of your investment options, there are a few things they don’t have to tell know about. For instance, if the company they work for doesn’t sell a particular type of product, they don’t have to tell you that product exists. They also don’t have to tell you if the product they’re advising you about might be cheaper elsewhere. They’re not breaking any rules by limiting their advice like this, so you have no right to compensation if you later find you could have got a better deal with another product or firm.
Being 100% sure your tax advisers know what they’re talking about is absolutely essential – but what does that actually mean? How can you be sure your adviser has the expertise to grow your investment and protect your money? One of the main things to check is that they have at least level 4 in the Qualifications and Credit Framework. That should at least show that they know what they’re talking about. After that, you’ll need to check they have an up-to-date Statement of Professional Standing (SPS). This means that they’re committed to acting ethically and honestly. It also means they’re going through a minimum of 35 hours of training each year. An SPS needs to be renewed yearly, so check the date and remember to ask questions if you’re not certain of anything.
Financial advice is a really personal thing, and what might work for one person might not be so good for another. That’s why your individual circumstances play such a big role in the advice you’re given. A really great adviser will ask a fair few questions before recommending a product or course of action, to be absolutely sure their advice is sound. Remember, if you get bad advice (as opposed to guidance), you could have a right to complain. That’s why advisers try to make sure anything they recommend is affordable and a good fit for your long or short-term goals. They’ll also work with you to decide how much risk you’re prepared to take (all investment involves risks of one kind or another). Your adviser should always factor your tax situation into their recommendations, of course, since that can make a huge difference to your options and prospects.
If an adviser misses any of these details and you end up with an inappropriate product, you don’t have to put up with it. Again, if you end up losing money because an adviser steered you wrong, you might be able to complain.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
First off, tax brackets or tax rates are the present amounts that you can earn before being charged an extra percentage of your income. Most of us are given a personal allowance which is basically an amount that we can earn before paying any tax. For the current tax year 22/23, this personal allowance sits at £12,570. So say your total income is £20,000, you can sleep soundly at night knowing that £12,570 of this won’t be touched by the taxman.
Depending on what you earn over your personal allowance will determine what rate your salary will be charged. To make it easier, we’ve outlined the different rates for whatever you earn on an annual basis. If you’re based in Scotland then this can vary from the rest of the UK and can be checked on Gov.uk.
If you’re paying tax in Wales, the situation’s a little different – or at least it could be. It’s possible for the Welsh Parliament to set its own tax rates for each of the tax brackets. It’s a little bit confusing, but HMRC dropped it’s rates for Welsh taxpayers, then allowed Wales to charge its own rates on top.
From the taxpayers perspective, nothing has changed and Welsh taxpayers pay the same as those in England and Northern Ireland. However, due to the agreement between HMRC and Wales, this may change in the future.
| Personal Allowance | Up to £12,570 tax-free |
| Basic Rate | Earnings from £12,571 to £50,270 taxed at 20% |
| Higher Rate | Earnings from £50,271 to £150,000 taxed at 40% |
| Additional Rate | Anything over £150,000 taxed at 45% |
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. If you earn more than this you can pay anywhere between 20% to 45% in tax depending on your income.
Check out our tax allowances page for more information.
Every PAYE job comes with a tax code, so if you've got more than one job, you're juggling more than one code. Each code lists some important information about how your money's taxed. For instance, it'll determine whether your Personal Allowance applies or whether you start paying tax from the very first penny you make instead.
The most common tax code for the 2022/2023 tax year is 1257L. All this code means is that you've got a Personal Allowance of £12,500 a year, and won't start paying tax on anything you earn below that. The letter at the end in this case just confirms that no special circumstances apply for this job. When you've got more than one job, a few things can go wrong with your tax codes. For one thing, if your Personal Allowance gets applied to the wrong job, you can miss out badly. Generally, you'll want it applied to the job that pays you the most – since you won't get the full benefit of it if it's applied to one that brings in less than the Personal Allowance threshold (£12,500 for 2022/23).
Okay, but what if both of your jobs pay less than the Personal Allowance you're entitled to? Well, in that case you need to get things sorted out fast before they cost you money. Let's imagine your main job in 2022/23 pays you £12,000 and your side-gig pays £8,000. Applying your Personal Allowance to the main one means you're losing the benefit of £500 of it. If things go really wrong and your allowance gets slapped onto your second job, you're missing out on a whopping £4,500 of it! When this kind of thing happens, you need to get in touch with HMRC as quickly as possible. They've got a system for splitting your Personal Allowance between your jobs so that you don't end up paying too much tax overall.
It's worth pointing out that splitting your Personal Allowance might not be the best idea if the income from your PAYE jobs isn't predictable. If one of your gigs suddenly takes off and pays a lot more than expected, you might end up with the taxman sniffing around your circumstances because you've underpaid.
With your Personal Allowance attached to your “main” job, your other one will generally get a code that sees it taxed at the basic rate from the very first penny. That sounds a little painful, but it's pretty much the fairest way to handle it. Again, though, there can be some problems when the numbers flying around get bigger. If your combined income goes over the threshold for the higher rate of Income Tax (£50,271 for 2022/23), then your tax codes won't be right.
Let's say you've got a main job paying £35,000 a year and another one paying £20,000. Not too shabby overall, you think. However, if you don't square things with HMRC you might be looking at some trouble when they catch up to you. In total, you're making enough for some of your income to be taxed at the higher rate. Despite that, since your earnings for each job are below that threshold individually, you're only being taxed at the basic rate on each (after your Personal Allowance, of course). Again, you have to talk to HMRC to get this sorted out and prevent some tense situations with the taxman.
Claiming a tax refund should not change your tax code. If your tax code changes, just let us know and we’ll make sure it’s right - it’s all part of our aftercare service and included in the price.
Your tax code represents the amount of money you can earn tax-free so it’s important that it’s correct. Who wants to pay too much tax? Or worse still, get a bill from the tax man because you haven’t paid enough?
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. The code is worked out by HMRC, who sends it to your employer or pension provider.
A higher tax code means you can earn more money before you start paying tax, so you’ll pay less tax over the year. However, tax refunds are hardly ever the same two years running, so if your claim is smaller, you won’t have paid enough tax and you’ll owe money to HMRC.
Your payslip should have your tax code on it. HMRC may tell your employer to use a higher tax code after you’ve claimed your tax refund because they assume you will be eligible for this tax relief next year – but you may not be. It all depends on how much travel you do.
Many people are worried about tax codes because they sound much more difficult than they actually are but once you know what all the letters and numbers mean it's as easy as reading any other code.
Find out more about your tax code and how to check if it's right.
When it comes to the tax you owe, your circumstances can make all the difference. Not every student is in the same situation, so the key to getting it right is figuring out exactly what the taxman expects from you. Here are some examples:
If you’re from overseas and get yourself a job while studying in the UK, things can be pretty complicated. If you pass the various tests to be a “UK tax resident”, you’ll probably find yourself eligible for UK tax and NICs. Depending on your situation, though, you might still be eligible for the UK Personal Allowance – which would probably mean you won’t end up paying any actual tax. If you do, you might be able to claim it back when you leave the country by filling in a P85 form.
Some countries have “double taxation” agreements to make sure that you don’t get taxed twice on the same money. Again, though, this stuff can get tricky, so it might be worth getting professional advice so you always know exactly where you stand. The UK Council for International Student Affairs can be a good starting point.
Working while you’re studying overseas means getting to grips with two sets of tax systems. On the one hand, you’ve got to keep HMRC up to date and happy. On the other, the country you’re studying in might have specific rules to watch out for. As far as the UK taxman’s concerned, it again comes down to whether or not you’re a UK resident for tax purposes. For example, if you spend under 16 days in the UK during a tax year, you’re unlikely to wind up paying any UK tax on your overseas income. However, the full rules are a little more complex than that, depending on:
Just like foreign students studying in the UK, you’ve got to watch out for things like double-taxation traps. It’s easy to get this stuff wrong if you’re not used to it, and it can end up costing you.
HMRC usually takes around 8-10 weeks to sort out a refund claim, so it’s best to get yours moving as soon as possible. The earlier you get your details to us, the quicker your tax rebate will arrive.
If you’ve missed out before on tax refund claims, it might not be too late. There’s a 4-year limit on getting back what HMRC owes you, and the tax year ticks over on the 6th of April. Once those 4-years are up, anything you’re still owed goes back in the taxman’s pocket forever.
The Pay As You Earn (PAYE) system takes cash out of your earnings before you get them. That cash covers Income Tax and National Insurance Contributions, along with things like pension contributions and Student Loan repayments. How much you actually get to take home depends on those amounts and the Personal Allowance you qualify for.
Almost everyone in the UK gets a Personal Allowance automatically. This is the amount of money you can earn before the taxman can touch it. The Personal Allowance for the 2022/23 tax year, for example, is £12,570. Anything you earn below that is tax-free.
Once you’ve burned through your Personal Allowance, you move into the basic rate band for Income Tax. If you earn enough in a year, you might see some of your income being taxed at the higher rate. Here’s how those bands look in 2022/23:
On top of that, you’ve got National Insurance to pay. This money’s used for things like keeping your State Pension eligibility. For most people in the UK, the 2021/22 National Insurance they’re paying looks like this:
There are lots of things that can factor into the amount of tax you pay. Examples include:
The tax you owe can also be affected by the rate of NICs you’re paying, any Student Loan repayments you’re making and whether you’re doing any work overseas. Working for a non-UK employer abroad, for instance, can mean your tax is different from someone who works full-time in the UK.
Two other big factors affecting your tax are your tax code and your Personal Allowance. HMRC uses your tax code to work out your entire tax calculation, and to take any special circumstances affecting you into account. That includes the Personal Allowance you qualify for, so it’s really important to make sure your tax code’s correct.
Another thing that can affect your tax calculation is any “salary sacrifices” you’re making in exchange for benefits from your employer. You also need to keep an eye on any pension plan contributions you’ve made. Both of these can change the amount of tax you owe.
The big thing that the taxman can’t always consider is any tax allowances or deductions you’re eligible for. Basically, HMRC won’t automatically have all the information it needs to get your tax calculations right. When you’re reaching into your own pocket for certain types of essential work travel, for instance, the cash you’re spending can qualify you for tax relief.
If you’re self-employed and working under the Construction Industry Scheme (CIS), there are some extra rules about the tax you pay. The main thing to understand is that you’re losing 20% of your pay directly to the taxman before you even get it. This can be a real problem sometimes, because it could mean you end up not getting the benefit of your Personal Allowance. Since you’re self-employed, you’re also paying different kinds of National Insurance.
When it comes to claiming tax rebates, one of the biggest reasons people overpay is their work travel.
HMRC has set out some Approved Mileage Allowance Payments (AMAP) for when you use public transport or your own vehicle to travel to temporary workplaces and back. Unless you‘re getting reimbursed at least as much as the AMAP rates, you’re still owed money.
A tax rebate is a payment you can claim from HMRC when you’ve paid more tax than you owe for any reason. When you’re an UK employee, your Income Tax and National Insurance Contributions (NICs) are taken from your pay automatically before you get it. However, when you’re spending your own cash on some of the key necessities of your work, a lot of those costs can earn you some tax back from HMRC.
You’ve got to be careful, though. It’s not as simple as “claiming back your expenses”. For one thing, you’re really only claiming back the tax portion of any costs you’ve covered out of your own pocket. On top of that, not every cost you shell out for will count toward your tax rebate. Confusion over tricky rules like these is what trips so many people up – or puts them off claiming altogether.
You could be owed a tax rebate if you:
Claiming a tax rebate isn’t supposed to be a huge hassle. You can fill in the forms online on the HMRC website, or ask a rebate specialist to do the legwork for you. The thing is, the taxman isn’t going to fork over a big sack of cash just because you tell him you’re owed it. HMRC will expect proof of every penny you’re claiming, and that means doing some paperwork. Some of the most common examples include:
If you’re ready to make your tax rebate claim, you can start the process off online on the HMRC website. Just follow the step-by-step guide. You still need to have done your homework, though, since you’ll still be expected to prove every penny you’re owed. “Quick and easy” might be good enough if your expenses are really simple, but if you’re putting in a more complex claim then you could easily end up missing out by not doing a more thorough job.
You can reach the official HMRC tax refund hotline on 0300 200 3300. Be prepared to wait on hold for some time.
Once you’ve put your tax rebate claim together, HMRC has to look it over and approve it. This generally takes about 8-10 weeks. Depending on your situation, though, the timing can vary quite a bit. For example, if HMRC has additional questions or needs more information, this can obviously add extra time to the process.
The main form most people will need to claim their yearly tax rebates is called a P87. It’s used to claim tax relief on your work-related expenses, and you can find in on the HMRC website. On top of that, there are a few other pieces of official paperwork that you’ll probably find essential to get your rebate paid. Your P60, for example, is used to prove how much tax you’ve paid on your earnings over the tax year. If you’ve left a job during the year (which is another reason why you might be owed some tax back), then the P45 you get from your former employer will show a running total of the tax you’ve paid so far. If you’ve been getting any “benefits in kind” from your job (including things like company cars or interest-free loans) then you might owe some tax on them. You should get a P11D form from your employer to detail all of this, unless they’re already taking the extra tax out of your pay.
When you’re self-employed, you don’t use the Pay As You Earn (PAYE) system to handle your Income Tax and National Insurance Contributions. Instead, you report your income and expenses to HMRC by submitting yearly Self Assessment tax returns. These tax returns tell HMRC all about the money you’ve got coming in and going out. The Self Assessment rules mean that the money you spend to keep your business running count against the profits you’re being taxed on. Every eligible expense reduces the tax you pay. It’s a bit like getting an instant tax refund.
One of the main things that trip people up about Self Assessment is understanding that they’re supposed to file tax returns at all. Even if you’ve already got a PAYE job, if you’ve got other sources of untaxed income (if you’re renting out property, for instance) you might have to register for Self Assessment and start sending tax returns to HMRC.
If HMRC realises on its own that you’ve paid too much tax, then you might get a P800 tax calculation form in the post to explain what happens next. When that happens, any refund you’re owed should be paid automatically. However, most of the time, HMRC simply won’t have enough information to know that you’re owed a refund at all. For example, it won’t know how far you’ve travelled for work or what you’ve spent on the upkeep of your equipment and tools. That’s why you have to make a tax refund claim to get back the money you’re owed. It’s also why you need to keep proof of what you’ve spent in the essential costs of your job.
While many people go the DIY route when claiming their tax rebates each year, a range of professional services are available for those who want a more thorough job done by an expert, such as RIFT. A traditional accountant will usually be able to take care of the basics and keep you out of trouble, but there are also companies that specialise in handling every aspect of tax rebate claims, from calculating your work mileage and costs to taking care of the Self Assessment forms you need to file if your qualifying expenses top £2,500.
When you travel to temporary workplaces for your job (remember, daily commutes to a permanent site don’t count), HMRC has set out some Approved Mileage Allowance Payment (AMAP) rates you can claim to lighten the load of your fuel and maintenance costs. The current AMAP rates look like this:
If you aren't already getting these full allowances from your employer, you can claim back the difference from HMRC.
The main thing to realise about tax rebates is that they’re not some magic windfall or dodgy way of “cheating the system”. The money you’re claiming back is yours by law. While the PAYE system does a decent job of working out the tax you owe on your basic salary, it falls flat on its face when it comes to critical expenses like travel to temporary workplaces. Unless you let HMRC know exactly what you’re spending just to keep doing your job, the taxman has no way of giving you the tax relief you’re owed. HMRC will never deliberately rip you off, because it only wants the exact tax you owe and not one penny more.
The tax rebate system is a way of levelling the playing field with HMRC, giving it the information it needs to get your tax calculations right. Of course, since the taxman’s not a mind reader, he can’t always predict what your expenses will be. Every time you reach into your own pocket to pay for the essentials of your work, a chunk of the price you’re paying is tax. That chunk is what you’re claiming back in your refund, and it’s why you have to keep good records of your spending top get back everything you’re owed.
In general, you’re usually able to decide how you want your tax rebate to be paid out. Some people prefer to get a cheque in the post, while others opt for a direct transfer to their bank accounts through the Bankers’ Automated Clearing System (BACS). Keep in mind that the way you decide to be paid may affect the amount of time it takes before your money arrives.
The basic form you use to claim back the tax you're owed for your work expenses is called a P87. This is where RIFT will tell HMRC about all the work travel and other essential costs you're paying out to do your job. These expenses are the core of your tax refund claim, which is why RIFT takes such great care with them.
This is the document that gives RIFT permission to talk to HMRC on your behalf. It's a lot less scary than it sounds, and means you never have to go toe-to-toe with the taxman yourself. You can take that permission away at any time, keeping you in control every step of the way.
When you're claiming for more than £2,500 of work expenses in a single tax year, HMRC says you need to file a Self Assessment tax return to claim your refund. It's the same form self-employed people use to pay their tax. RIFT handles your SA1 paperwork for you automatically when we prepare your tax refund claim, meaning no stress or hassle for you!
When you're paid through CIS, a 20% chunk of your cash is hacked off by your contractor and sent straight to HMRC. This leaves a lot of construction workers losing out to the taxman. When RIFT works our your tax refund claim, we make sure you get back any tax you've overpaid through CIS.
When you work in construction, many of your day-to-day expenses count toward the tax refund you're owed. Anything from upkeep and replacement of specialised clothing or tools through to your morning cuppa at the on-site cafeteria can earn you some tax back, and RIFT will sort your paperwork out to make sure you get it.
Travel to and from temporary workplaces (where you work for under 24 straight months) are the core of most tax refund claims. That's why it's so important to keep track of the mileage you're doing for work. RIFT will work out all the tricky details for you when we prepare your claim, and can even calculate your mileage to sites that no longer exist!
Tax rebates are for anyone who has to reach into their own pocket for the essential costs of doing their job. Depending on the work you do, that could mean business mileage, maintaining tools and work clothing or food and accommodation when you're travelling for work.
There are lots of reasons why you might be owed some tax back. If you've paying for work travel or other essential expenses, for instance, you're owed a tax refund. You could also be owed cash by HMRC if you've stopped work during part-way through a tax year, been given the wrong tax code or switched from full-time to part-time work. Whatever your situation, RIFT will always make sure you get back what you're due.
It usually takes 8-10 weeks for HMRC to process a tax refund claim. However, if your claim's more complicated or the taxman has questions about it, it can be longer. Getting your claim started as early as possible will help speed things along, as will having the UK's top tax experts at RIFT handle the process for you.
The tax refund rules give you a hard limit of 4 years to claim back the tax you're owed. After that, it's gone for good. When RIFT works out your claim, we'll be able to claim back everything you're owed for the last 4 years.
Being stuck on an emergency tax code can easily leave you being owed a tax refund. This can happen when you start a new job without a P45 form from your old one, for instance. How much tax you can reclaim will obviously depend on your situation, so talk to RIFT to find out exactly what you're owed.
Yes, if you’re confident you can get your head around the legislation on temporary workplaces and have the time to liaise directly with HMRC.
However, if you don’t apply the rules correctly and claim more than you’re allowed to, HMRC may ask you to pay back some or all of your refund.
It's like getting your car fixed. Some people can do it themselves already, lots of people could learn to do it but they prefer to have an expert do it because:
Visit our How to make a claim page for details of what's involved.
Have a look at our tax refund calculator and see if you're due anything back from HMRC.
You can make your tax refund claim any time after the end of the tax year it relates to. The sooner you get the process moving, the sooner you'll have your money back.
You can claim back any tax you're owed for the last 4 tax years. Once that 4-year limit is passed, though, your refund vanishes into the depths of HMRC forever.
If you're worried you might be paying emergency tax, the first thing to do is check the tax code for the job you're concerned about. Remember, every employment you have has its own tax code and your Personal Allowance is only applied to one of them. If you've got 2 PAYE jobs, for example, you'll have 2 different tax codes.
Check your payslips. If the tax code for your job ends in an "M1" or "W1", then you're paying emergency tax. If you've got an unusual pay period (meaning not weekly or monthly), you might have an "X" tax code instead. If you see an "OT" at the end of your code, it means HMRC doesn't have enough information about what you're earning to give you the right code.
It's always best to have your National Insurance number to hand when you're claiming a tax refund. Without a record of your NI number, it can be more difficult and time-consuming for HMRC to check all your important information. You may still be able to make your tax refund claim, but you'll have a bumpier ride getting it.
RIFT can help track down all the crucial details for your tax refund claim. Get in touch if you're worried you might be missing any details.
If you've overpaid your National Insurance Contributions (NICs) for any reason, you can claim back what you're owed as a National Insurance rebate. This can happen, for instance, if you've got more than one PAYE job, or have both employment and self-employment income.
If you're employed, you can often get your National Insurance refund by contacting your employer. If you're self-employed, though, you may need to write to HMRC directly or call the Deferment Services Helpline. The exact process depends on the type of NICs you're claiming a refund for, so check with RIFT if you're not sure of your footing.
A P60 End of Year Certificate is a form that details all your earnings from a given tax year, along with the NICs and Income Tax you've paid through the PAYE system. It will also show important information like any pension contributions or student loan repayments you've made.
A P45 is a form you get when you leave a job for any reason. It shows all your income so far in the current tax year, and all the PAYE tax you've paid on it. Unlike a P60, it usually won't include an entire tax year's worth of information. It's an important document to have when you're changing jobs, since it allows your new employer to work out the right tax code for you.
CIS refers to the Construction Industry Scheme, a system set up to tackle tax evasion in the building trade. What it basically means is that subcontractors have tax taken out of their pay directly by their contractors. If this means they end up overpaying, they can claim back what they're owed as part of their Self Assessment tax return paperwork.
Even if you're not classed as a UK resident for tax purposes, you still generally have to pay UK tax on your UK income. Of course, this means you can still claim any tax relief you're entitled to, such as your Personal Allowance and any tax refunds you're owed for your work expenses. Your tax situation can get complicated if you're earning money in the UK while living abroad. In some cases, it's actually possible to end up paying tax in two countries on the same income—although there are some "double taxation" agreements in place around the world to help balance things out.
If you're a UK resident, but your permanent home's abroad, you may not need to pay any tax on your overseas income. Always talk to RIFT if you're not sure you're paying the right tax in the UK.
No matter how many jobs you have, you can claim back any tax you're owed through the tax refund system. Any time you're shelling out your personal cash for the necessities of doing your job, you might be owed some tax back.
When you have more than one PAYE job, you'll have more than one tax code. Your Personal Allowance will only be applied to one of these, which generally needs to be your "main" job (meaning where most of your income comes from). If your Personal Allowance is attached to the wrong job, you might not be getting the full benefit if it. Talk to RIFT if you're not sure where you stand. If there's a problem with your tax codes, we'll get it fixed.
When you're claiming a tax refund from HMRC, they'll need to see some basic information about you, your work, and what it's costing you to do your job. Here's some of the main paperwork that can help build your tax refund claim:
Flat rate expenses are a simplified way of claiming back some of your overpaid tax for essential work expenses like maintaining your tools and equipment or washing your uniform. They're basically just set amounts that you can claim, meaning you don't have to go through the grind of calculating all your expenses by hand. The amounts themselves vary according to the kind of work you do, but even if your specific occupation isn't listed you might be able to claim the standard £60 in tax relief each year.
You probably won't ever get back everything you're owed using the flat rate expenses system, but it can be less hassle if you don't like keeping a lot of records.
There are lots of reasons why you might be owed a PAYE tax rebate from HMRC. You might have overpaid your Income tax because you stopped working part-way through a tax year, for instance, or because you're on the wrong tax code.
On of the biggest reasons why you might be owed a tax rebate is that you're paying from your own pocket for essential work mileage or other expenses. When you're meeting many of these unavoidable costs yourself, you can claim back the tax portion of their costs as a refund. Examples include:
Generally, the first time people realise they've paid too little tax is when they get a P800 Tax Calculation from HMRC. When that happens, HMRC will explain what they plan to do about it, which will usually mean a change to your PAYE tax code or a direct payment to settle up. If you think your P800 might be wrong, always check it against other tax paperwork like your P60 or P45 (and P11D if you're getting any work benefits from your employer). If it still looks wrong, talk to RIFT so we can get it fixed.
If you want to check whether or not you might be owed a tax refund for things like work mileage and other expenses, RIFT's free online tax refund calculator should be your first port of call. With a few clicks, we'll be able to let you know whether you have a claim to make, and what to expect from it.
On average, our clients get £600-£800 per year, and we can reclaim your expenses for the last four complete tax years. So your first claim could be worth around £2,500.
There are lots of ways to start your claim:
If it's hard for you to call us, don't worry, let us know what time is best for you and we can call you back. Any calls from us will come from 01233 628648 so you'll know it's us.
Once we have received all of your information and documents, our team of experts will put your claim together before sending it to HMRC to be processed. The sooner we receive your information and signed forms, the sooner you will receive your tax refund. Typically HMRC then take 6-8 weeks to process and pay out your refund.
Read more about how long a tax refund takes.
See our checklist of information that we'll need to make your claim.
It takes a few weeks to put together a really comprehensive tax refund claim. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. It can take 8-10 weeks for the taxman to check your details and confirm your refund total, so the sooner you get us the information we need the sooner you'll have your money.
The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. This is the form that lets us tackle the taxman on your behalf. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. It's annoying, but it's all about protecting you.
As soon as your refund's paid out, we'll either send you a cheque or pay it into your bank account if you prefer. The choice is yours.
Have a look at our 'How Long Does A Tax Refund Take' page for more information about how long it takes to get your tax refund done and some pointers for how to make things happen as fast as possible.
Remember that you can claim for the last 4 tax years and you can make your claim at any time.
Our standard charges are:
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (still included in the cost) and if anything did go wrong (which it never has in 15 years) we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
Not at all. That's just what we're here for.
To make your tax refund claim we need to know where you worked, how you travelled there and how much it cost you. For the first claim you make we'll also need to set up your account so will need some ID. Have a look at our checklist.
If you haven't got copies of everything we can help you get hold of them, even getting in touch with your employers, ex-employers, job centre, DVLC and so on.
You can fill out your info on our easy to follow paper pack or online.
If you don't like doing paperwork yourself or don't have the time/opportunity to do it then you can give us your info:
Many of our customers have jobs that take them away from home for long periods, or work unusual hours, which can make paperwork difficult we know. Once we have your signed forms that say you want us to proceed with your claim you can give permission for a spouse, partner or relative to talk to us about the paperwork if that's easier.
Please do!
Not only will you be doing them a big favour if you can get some cash back in their pockets but we'll pay you a £50 referral reward for anyone who does go on to claim through us.
Until the 9th of October we'll also pay you an extra bonus of £150 if 5 people claim with us (T&Cs apply)
If you tell them to apply now they'll get their tax refund in time for Christmas and you'll get something extra to stuff in your stocking. That could be £400 in your pocket as well as the warm glow you get from helping out your mates.
To get started:
Not sure which friends could claim? Find out more about who can claim tax refunds.
There's no limit to the number of people you can refer and we pay out the rewards every week. It could be a nice little extra in your pocket, as well as the lovely warm feeling you get from knowing you helped out a mate.
Find out more about the referral scheme.
In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". What it's definitely not is a prize or a dodgy way of ''cheating the system''. When you're owed a HMRC tax refund, it's because you've already paid too much tax.
When you're paying your own way to temporary workplaces, the odds are good that you're owed some tax back for your expenses. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. It's worth making sure you get back what you're owed, too. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to £3,000. This is based on average total claims data for a 4-year period. Refunds are subject to fees of 36%. Exclusions apply.
A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. The tax rebate system's a little clunky in places, but RIFT's on-demand, 1-on-1 service means you'll never get lost or lose out.
Just answer a few simple questions and we can tell you whether it looks like the expenses you've had to pay out in the course of your work meant that you may have paid more tax than you should.
You can also use our tax refund calculator to see an estimate of how much you could be due if you make a claim.
Claiming a tax refund should not change your tax code. If your tax code changes, just let us know and we’ll make sure it’s right - it’s all part of our aftercare service and included in the price.
Your tax code represents the amount of money you can earn tax-free so it’s important that it’s correct. Who wants to pay too much tax? Or worse still, get a bill from the tax man because you haven’t paid enough?
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. The code is worked out by HMRC, who sends it to your employer or pension provider.
A higher tax code means you can earn more money before you start paying tax, so you’ll pay less tax over the year. However, tax refunds are hardly ever the same two years running, so if your claim is smaller, you won’t have paid enough tax and you’ll owe money to HMRC.
Your payslip should have your tax code on it. HMRC may tell your employer to use a higher tax code after you’ve claimed your tax refund because they assume you will be eligible for this tax relief next year – but you may not be. It all depends on how much travel you do.
Many people are worried about tax codes because they sound much more difficult than they actually are but once you know what all the letters and numbers mean it's as easy as reading any other code.
Find out more about your tax code and how to check if it's right.
Yes, if you’re confident you can get your head around the legislation on temporary workplaces and have the time to liaise directly with HMRC.
However, if you don’t apply the rules correctly and claim more than you’re allowed to, HMRC may ask you to pay back some or all of your refund.
It's like getting your car fixed. Some people can do it themselves already, lots of people could learn to do it but they prefer to have an expert do it because:
Visit our How to make a claim page for details of what's involved.
Have a look at our tax refund calculator and see if you're due anything back from HMRC.
No, we work direct with HMRC and reclaim the tax you have overpaid from them, not your employer.
Sometimes we need some information from your employer to support your claim. In these cases either you can ask your employer for it or we can contact them for you.
If your employers would like to know more about the process then you can send them to our information for employers page which explains everything, or you can look there and find the answers before speaking to them yourself.
If you claim too much tax back and HMRC pays out, they can later decide to demand the money back as it rightly should have been paid to them. If you’ve already spent your tax refund (and why wouldn’t you?) that means paying it back from your own pocket - UNLESS YOU ARE A RIFT CUSTOMER.
Our expertise means that we will never submit an incorrect claim, but HMRC do conduct random checks, there may be something unusual in your claim that they want more information on due to your personal circumstances (maybe you had a lot more expenses than usual this year because you got more work or had to replace more equipment) and sometimes do even make mistakes.
We’re proud to work to the highest standards. We make sure that we assess, calculate and validate each and every claim thoroughly against the latest legislation. RIFT claims for everything you’re due so you get the maximum refund. And we never claim for anything that you’re not entitled to or that we can't prove to HMRC.
When you claim your tax refund with RIFT, our unique RIFT Guarantee means that you don’t have to worry about the taxman reclaiming any of your money. So long as you give us full and accurate information, if HMRC disagrees with the amount that we’ve claimed and ask for the money back, we’ll pay it. It won’t cost you a penny.
If there is any sort of investigation we will handle the whole thing for you. It's all part of our aftercare service and there are no extra charges. It's not just about the money, either. Even if you know you're in the right the whole process can be incredibly stressful if you have to deal with it on top of your normal job but that's why we're here to help you.
We're the only Tax Refunds company that has been awarded the Institute of Customer Service Accreditation.
Have a look at our blog about what to do if you get an HMRC enquiry letter or what to do if you find you haven't paid enough tax.
Your wage slips can help us determine whether or not you’ve received expenses towards your travel.
If you have, we have to deduct this from your claim. If you haven’t, we need the wage slips to show that no deduction is required. We need all the wage slips for the period you’re claiming for.
We need to be able to provide HMRC with evidence that your claim is valid. If you have been told by anyone that this is not necessary then you may want to investigate their service guarantees further as you may end up losing any refund awarded back to HMRC if you cannot prove that you are entitled to it.
Often we find that people get a higher refund the second year that they claim as they know more about which paperwork to keep for proof of expenses.
See our checklist of documents for what you'll need and remember that we can help you get copies of many things you may have lost.
Get in touch with us and we can give you expert advice and if you need us to we can talk to HMRC on your behalf to try and get things straightened out.
There’s a chance we can reduce your debt and even get you a refund. Often people find that their refund will be big enough to clear the debt and still leave them with a little extra. While that's not such good news as getting to keep your whole refund it does give you peace of mind that the debt is gone and there are no fines or interest stacking up. With that cleared you'll be able to claim again next year and keep all of it.
If the debt is too large to be covered by any refund we can help arrange a payment plan for you or for you to pay it back through your tax code throughout the year.
Genuine mistakes do happen as well, so we can investigate and find out if that is the case.
There are lots of reasons that people might have unknowingly underpaid their tax. The important thing is to be able to show HMRC if it was an honest mistake as soon as you can. Showing willingness to get things sorted out will go a long way.
The one thing you shouldn't do if you think you owe HMRC money is ignore them. They will pursue it and the longer you leave it the worse it will be when they finally catch up with you.
Read more about what happens if you've underpaid tax.
Usually, yes. The only exception is when your employer has paid you the full 45p per mile, tax-free, for the first 10,000 miles in a year and 25p per mile for anything over that. If they've paid less than that, e.g. 10p per mile, then you can claim the difference.
Making a claim won't affect your employer at all, although sometimes they get worried when they hear the word "refund" or "claim". You're not claiming anything more from them, just making up the shortfall from HMRC, and they won't get in trouble because they haven't done anything wrong. If your employers has questions you can point them to our Information for Employers page.
Use our tax calculator to find out if you are due any money back.
Yes. The legislation is about travelling to temporary workplaces, it doens't matter what you used to travel there as long as you incurred a cost for doing so that was not refunded by your employer.
It helps if you've got the receipts but we may be able to claim public transport without receipts because the costs are quite standard for each journey.
See how much you could be owed with our tax calculator.
It makes no difference what your job is; if your employer doesn’t pay your travel expenses in full, you could get a tax rebate.
Whether you're looking for a tax refund for Armed Forces, PAYE Construction, CIS Construction , healthcare, offshore, security or any other industry sector, if you're paying out of your own income and work at different locations, you can get tax back for your costs.
The taxman's rules can be messy and complex. If you want to stay in his good books, you need to know exactly what you're entitled to but we can help you with your tax refund paper work.
With RIFT Refunds, finding out if you can get tax back is easy and it's free. You can talk to one of our friendly advisors right now or we can call you if that's easier. It won’t cost you anything to find out if you can get a tax rebate and you never know - you might get a nice lot of tax back from HMRC!
If your annual expenses are over £2,500 then it’s a bit more complicated. Instead of just submitting a tax refund claim you have to complete a self assessment tax return for HMRC. If you have to do that yourself it’s quite a lot of extra work and hassle. There’s no need to worry about that though; if we do it you won’t even notice the difference.
Find out if there's any money waiting for you at HMRC today with our tax calculator.
If your employer pays your travel expenses in full, or you only work in one location for an employer, you won't have overpaid the tax.
Although it may seem disappointing if you have nothing due back from HMRC all that really means is that you haven't been out of pocket for the last 1-4 years. You're not losing out now, if there is a claim to make it's because you've overpaid tax. It's not winning the lottery, it's putting things right.
Here's a list of the most common reasons that people can't a refund.
If you're self employed, the rules are different, and there are other expenses we may be able to claim for you. Find out more about self employed tax returns
Tell us a bit about your situation and we can quickly let you know if you should claim a tax rebate.
A Letter of Assignment (sometimes abbreviated to LOA) is the letter that you sign that legally allows HMRC to send your tax refund money to another person or organisation on your behalf. This will usually be your "agent" - which could be a tax refund specialist like RIFT or another accountant.
The work that RIFT does will usually mean that if we are claiming a refund for our you then we will do your paperwork and submit your claim and HMRC will then send the money to us on your behalf. At that point we deduct our fee and send the balance of the refund to you.
The letter must specifically mention to the tax years that to which it applies. It can be cancelled at any time with the agreement of both the person assigning the repayment and the person or organisation assigned to receive the repayment.
When we send you your letter of assignment it will look like this:
What should I do if I have assigned another company to receive my refund in the past but now want to switch to RIFT?
If you have signed a Letter of Assignment with another company then it is legally binding for the tax years listed on it unless both parties (you and the company you signed with) agree to "rescind" (remove their right to receive your tax refund from HMRC) that assignement.
This means that you need confirmation from the existing company that you used that says they have "rescinded their right" to receive the refund before either you or an alternative tax agent can receive any refunds due for those years.
Unfortunately we will not be able to offer our service until you have confirmation from them that the letter has been "rescinded".
How can I change the company I want to receive my refund for me?
You need to contact the company you used and ask them to confirm that they"rescind their right to receive any refunds of tax" on your behalf. As long as there are no outstanding fees to pay the company will usually agree right away.
However, we are aware that some people who want to use our services are finding it difficult to contact their previous supplier of tax services to do this and that in some instances there have even been outright refusals by those companies. In these situations we may be able to help you to contact the company and get it sorted out for you.
Is signing a letter of assignment the same as authorising an agent?
No, but you will need to do both for RIFT to claim your refund for you. You make a person or organisation your agent with HMRC by signing a form called Authorising Your Agent 64-8. Your agent is the person who deals with HMRC on your behalf and who prepares and submits your tax refund claim paperwork. For example if you are a RIFT customer then RIFT is your agent.
If you're waiting for your refund for longer than you expected then the usual cause is that we don't have one or both of these signed documents from you. Get in touch if you need to check and if you need new copies we can send them out to you.
Claiming a tax refund should not change your tax code. If your tax code changes, just let us know and we’ll make sure it’s right - it’s all part of our aftercare service and included in the price.
Your tax code represents the amount of money you can earn tax-free so it’s important that it’s correct. Who wants to pay too much tax? Or worse still, get a bill from the tax man because you haven’t paid enough?
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. The code is worked out by HMRC, who sends it to your employer or pension provider.
A higher tax code means you can earn more money before you start paying tax, so you’ll pay less tax over the year. However, tax refunds are hardly ever the same two years running, so if your claim is smaller, you won’t have paid enough tax and you’ll owe money to HMRC.
Your payslip should have your tax code on it. HMRC may tell your employer to use a higher tax code after you’ve claimed your tax refund because they assume you will be eligible for this tax relief next year – but you may not be. It all depends on how much travel you do.
Many people are worried about tax codes because they sound much more difficult than they actually are but once you know what all the letters and numbers mean it's as easy as reading any other code.
Find out more about your tax code and how to check if it's right.
The simple answer is as soon as possible after the 5th April.
We complete your tax return online and this has to be submitted and paid before the 31st January the following year.
If you miss the deadline there are some pretty expensive penalties from HMRC, and they are very strict on what counts as a good reason for being late. Get your information into us as quickly as possible.
Another important deadline to note is that you should get yourself registered as self employed as soon as possible after you start trading. The deadline's the 5th of October in the year you started your self-employment. Miss that, and you're risking penalties based on the potential lost tax.
If you're self-employed, you'll need to file yearly Self Assessment tax returns to report your earnings and expenses to HMRC. However, there are several other reasons why you might need to file tax returns. For example:
The main thing to realise is that you can't afford to keep the taxman waiting if he's expecting a tax return from you. Even if you're sure it's a mistake, get in touch with RIFT. If there's a problem, we'll be able to help—even if you're already facing penalties for missing a deadline.
Having a plan is the best place to start your saving journey. The most popular first goal is to secure your living expenses in the short-term future. And many financial experts recommend that you have at least three months’ living expenses saved up.
If you don’t know how much money leaves your account in the average month, you won’t know how much you can afford to save.
Take a look at your last few bank statements. Break those expenses down into ‘necessities’, like grocery shops, energy bills and council tax, and ‘wants’, like nights out, takeaways and shopping. That way, you’ll know roughly how much you’ll need to save to hit that three-month target.
If three months’ money sounds like a lot to put away in the short term, don’t worry. Right now, nearly 41% of Brits don’t have enough savings to last more than a month, while a third have less than £600. So, having any money saved means you’re in relatively good shape.
You don’t need to start your savings fund with a chunk of money. The 1p challenge is a brilliant way to kickstart your savings. Start by saving 1p on day 1, 2p on day 2, 3p on day 3 and so on. By the end of the year, you’ll have over £660 saved up from something that started with loose change! You can start off the old-fashioned way with a coin jar and move the process over to a savings account when the savings grow
If that sounds like a bit of a chore to do every day for a year, there are plenty of banking apps out there that do something similar.
With apps like Monzo, Revolut and even NatWest, you can round up your purchases so that the remainder goes straight into a savings pot. That way, you’re saving money even as you spend.
This system is especially useful if you’re saving for something specific, like a holiday or a new TV, but still works even if you’re just putting that money aside for a rainy day. Set a target amount and you’re good to go. You’ll be saving without thinking about it.
For longer-term budgeting, one of the most well-known saving techniques is the 50/30/20 rule. That’s 50% of your income going on necessities like food, energy, and rent, 30% on wants, and the remaining 20% straight into savings. It’s not a hard and fast rule, but it reinforces good saving habits and means you’re never spending more than you can afford.
If you’re around 21 years old, have a job and live at home with family or guardians, you’re in a brilliant position to save! And since your ‘needs’ aren’t likely to use up 50% of your income, why not make it 40/30/30? That’s an extra 10% in your savings every month.
If you want to make money from home without any extra equipment, you’ll need to make use of what you already have. As most of the ideas we’ll talk about are digital - how else are you going to make money without leaving the house? - you’ll need:
Bear in mind, you’ll also need to have some level of digital ability - typing, writing emails et cetera - even for our beginner-level options. If that sounds like you, let’s get into some money-making ideas…
Let’s get the big thing out of the way first. When you’re comparing subscription prices, nothing beats free. Obviously, sticking with zero-fee options will limit the kind of film and TV choices you have – or at least pump them full of adverts. Even so, there’s a lot of entertainment out there that doesn’t come with a monthly punch in the wallet.
BBC iPlayer is great as a catch-up service for films and TV. You can get everything from just-aired shows to classic ‘box sets’, and it won’t cost you a penny as long as you’re already forking out for a TV licence. If you don’t mind a few adverts cluttering up your viewing, you can look into ITVX, Channel 4 or UK TV Play for more free options. Keep in mind that some free streamers have paid tiers with more content as well, so make sure you know what you’re actually getting.
If you’re happy to pitch some cash into your streaming platform, then it’s worth considering which of them offer a free trial before you make a final decision. Amazon Prime, for instance, offers a free 30-day try-out that you can cancel at any time without losing money. The free period for Apple TV+, on the other hand, only covers 7 days of access to its catalogue of original films and shows. Bottom line: always check if you can try before you buy – and don’t forget to cancel any services you don’t want before they roll over into a paid subscription. Typical fees for the big-name streaming platforms can range from £5.99 a month for Amazon Prime to a whopping £29 a month for Sky Stream. It’s all about balancing the kind of viewer you are with the prices on offer. Speaking of which...
So there you have it. There’s a lot more to it that just buying it and moving in. Once you’re all settled, the real work – and costs – begin. Obviously, you’ve already thought about your monthly mortgage repayments. Beyond those, though, you’ve got water and energy costs to consider. Those alone can add hundreds of pounds to your monthly costs. Then you’ve got charges for your phone, broadband and TV services, which will largely depend on the packages you choose.
Read our guide: 6 ways to save on gas & electric
There’s also Council Tax to think about (see our guide, “Council Tax Debt Help: Where Do I Start ?” for more) and insurance costs to deal with. Depending on the band you’re in, Council Tax can range from hundreds to thousands of pounds over a year. Insurance costs will be based on the kind of cover you’re paying for (buildings, contents, etc.) and other factors from the value of your home to the materials it’s made from and the measures you’re taking to protect it.
The list goes on. If you park your car in the street, for example, there may even be an additional charge for this – along with any permits you might need to buy for friends and family. For leasehold properties, there’s often a yearly ground rent and service charge to pay. Depending on your agreement, you might also have to contribute toward work done on common areas or the structure itself.
Your home might’ve been in perfect condition when you bought it, but over time you could lose tiles from the roof or need to fix water leaks or replace a dodgy boiler. It all mounts up, and you need to be prepared for it.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Any time you’re considering signing up to a subscription service, it pays to peer a little closer at the details of the agreement. If you want to avoid a lot of family arguments, one thing to look for is the number of simultaneous streams your chosen platform allows. Netflix, for instance, has different rules about this for its different tiers. If you’re on their lowest add-supported tier, you’re limited to 2 devices streaming at once. Their top tier, on the other hand, bumps that up to 3. Disney+ sets a flat limit of 4 devices and no other tiers to pick from. Amazon Prime went with a slightly more complicated set-up, allowing up to 3 simultaneous streams as long as only 2 of them are watching the same content.
You’ll also want to keep an eye on how your platform handles password sharing. Netflix in particular has been cracking down on this. In fact, they’ve actually been contacting customers directly to explain how to add extra people to their accounts for a bumped-up fee. Meanwhile, Amazon Prime’s streaming service is linked to your Amazon account, so you’d probably be smart not to start sharing your login details around. However, their Amazon Household system does allow you to share your account with another adult and up to 4 children.
Finally, if you’re proud of your top-end TV, you’ll obviously want to pump it full of high-resolution content and spatial audio. If you’re only going to be watching on your phone, though, you might not need all the bells and whistles. 4K’s the basic standard for the major paid streaming services, and even the humble iPlayer can still manage Ultra High Definition video occasionally. Just keep in mind that your experience will only be as good as your device and internet speeds allow, and make sure you’re not paying for quality you’ll never see.
Whatever kind of films and TV you’re into, there’s a streaming service out there for you – and not all of them take blockbuster budgets to enjoy. Make no mistake, it’s your eyeballs and your wallet the streamers are fighting over. It makes sense to put real thought into where your cash is trickling out while all that content’s streaming in. Like the gym card you haven’t used in years or the gaming subscription you forgot you signed up for, slimming down your memberships is a great way to take control of your cash.
If you’ve got a thermostat, this is an instant way to start saving money – particularly in the colder parts of the year. Dialling your heating down by 1 degree will usually make very little difference to how warm most people feel. However, it could save as much as £90 over a year on energy bills. Experiment with your thermostat until you find the right balance between comfort and cost.
It takes a few weeks to put together a really comprehensive tax refund claim. As soon as you're happy to go forward, we'll send your claim to HMRC for approval. It can take 8-10 weeks for the taxman to check your details and confirm your refund total, so the sooner you get us the information we need the sooner you'll have your money.
The best way to speed up your RIFT Tax Refund is to get your Authorising your agent (64-8) form back to us fast. This is the form that lets us tackle the taxman on your behalf. Without 2 physical copies of your 64-8 document, HMRC won't even speak to us about your claim. It's annoying, but it's all about protecting you.
As soon as your refund's paid out, we'll either send you a cheque or pay it into your bank account if you prefer. The choice is yours.
Have a look at our 'How Long Does A Tax Refund Take' page for more information about how long it takes to get your tax refund done and some pointers for how to make things happen as fast as possible.
Remember that you can claim for the last 4 tax years and you can make your claim at any time.
In HMRC's language, a tax rebate is "a refund on taxes when the tax liability is less than the taxes paid". What it's definitely not is a prize or a dodgy way of ''cheating the system''. When you're owed a HMRC tax refund, it's because you've already paid too much tax.
When you're paying your own way to temporary workplaces, the odds are good that you're owed some tax back for your expenses. ''Temporary'' here just means it's somewhere you're working for less than 24 months on the trot. It's worth making sure you get back what you're owed, too. You can claim a tax rebate for up to 4 years, with an average 4-year rebate with RIFT coming to £3,000. This is based on average total claims data for a 4-year period. Refunds are subject to fees of 36%. Exclusions apply.
A lot of the time, people don't even realise how many of their day-to-day expenses qualify for tax relief. Unless you prove to HMRC what you're owed, though, the taxman won't have the information he needs to settle up. The tax rebate system's a little clunky in places, but RIFT's on-demand, 1-on-1 service means you'll never get lost or lose out.
Just answer a few simple questions and we can tell you whether it looks like the expenses you've had to pay out in the course of your work meant that you may have paid more tax than you should.
You can also use our tax refund calculator to see an estimate of how much you could be due if you make a claim.
Our standard charges are:
Don't worry if you had a mixture of self-employed and PAYE (employed by a company) work during the period you want to claim for. We can work out if you would be due a refund and let you know what the fee would be.
See our full list of services with prices and options.
When we receive your refund from HMRC we take out our fee and then pay it the refund to you. There are no up front charges to pay for anything. If you are not due a refund then there is no charge.
Before we send your claim to HMRC we sent a copy to you with a full breakdown of all the fees so you can clearly see:
You will need to sign and send this back to us to say you have read, understood and agreed with it, along with a declaration that all the information you have provided about your claim is true. This means you will never be charged any fees you have not agreed to.
There are no further fees to pay, and no hidden charges.
All aftercare is included (if you need us to call HMRC on your behalf, if you have a problem you would like us to resolve with them, if your tax code needs correcting etc).
Your refund is covered by the unique RIFT Guarantee which means that whatever happens, your refund stays in your own pocket and will never go back to HMRC. If we fight any HMRC enquiries for you (which is included free of charge) and if they did demand any money back, we would pay back the refund to HMRC ourselves.
We will also send you a reminder when it's time to see if you have a claim next year.
You can reach us on the phone or Livechat
You can email us or send us a question or feedback through our contact page at any time and you can leave us a private message through our Facebook page.
If you qualify for one, a Lifetime ISA (LISA) is one of the best ways to save toward your deposit on a first home. You can only get one if you’re between the ages of 18 and 39, with a yearly pay-in limit of £4,000. Why are they so good? Well, how does an annual 25% cash boost to your pay-ins sound? That exactly what the government offers on these accounts - meaning that if you pay in the maximum of £4,000 in a year, you’ll get it topped up by an extra £1,000 for free.
Obviously, there’s a little more to it than that. For example, like other kinds of ISAs, you’ve got a choice about how your money is used. A stocks and shares LISA will invest your savings in businesses in hopes of faster growth, while a cash LISA will pay out an agreed rate of interest. Since you’ve got a specific goal in mind here, you might decide that a cash LISA is the less risky option.
You can read more about Lifetime ISAs in our other guide, “5 Alternatives to Savings Accounts”. One key point to understand now, though, is that you really have to commit to them to get the benefits. There are rules about how you access your cash that can completely wipe out most of the rewards of saving this way, with a 25% penalty to pay on any withdrawals you make before the age of 60 unless you’re using them to buy a house. That basically blows your whole bonus if you take it out early or use it for something else.
However thorough your budgeting is, it’ll only ever be as good as your ability to stick to it. That means keeping a running total of your actual spending alongside the goals you set out for it. It’s insanely easy to overspend in a world where we can hurl money out of our accounts with a wave of a contactless card or a tap on a mobile screen. If you want to make the most of your saving potential, though, you’ve got to clamp down on random impulse spending. No, you’re not going to finance your entire first home on the savings you make by skipping your daily latte. However, but you could still sock away over £700 in a year by doing exactly that – and that’s really only the tip of the everyday savings iceberg.
Trade credit is what you’ll tend to see when businesses deal with each other. The ‘customer’ business agrees to pay later for goods or services the ‘supplier’ business provides now. The credit terms offered will usually depend on the relationship between the firms. So, for instance, the agreement might be based on the financial situation of the borrower. If the businesses know each other pretty well, then the rules might factor that in too, although larger companies will often have set credit terms they offer to pretty much all their customers.
Train fares can vary massively, with a lot depending on when you buy your ticket and the specific route you pick. In general, the earlier you buy, the less you’ll pay to travel, so checking out the fares well in advance will usually get you the best deals. If you use trains regularly, then a railcard could be a smart option, too. You’ll get a discount of a third off your fare when you use it, assuming your journey qualifies, and it’ll all add up over time.
Another option to look into is “splitting”, which sites like trainsplit.com can help you do. Basically, instead to buying a ticket for your entire journey, you can often make impressive savings by splitting the journey into chunks. Your first ticket gets you from point A to point B, then your second one takes you from B to your final destination of C. The best thing is you don’t even have to change seats, let alone trains, to do it. Strangely, this “split” journey can end up being a lot cheaper overall.
The last thing to remember about trains is that you can get compensation if your journey’s delayed by over 15 minutes. A lot of people miss out on this, and the systems can vary depending on the company. Even so, it’s always worth checking what you’re entitled to when your train service lets you down.
When you’re paid via the Pay As You Earn (PAYE) system, you can claim back some of the tax you’ve paid on your earnings. How much you can claim depends on the money you’re splashing out on the essentials of doing your job. We’re talking about things like travel to temporary workplaces and repairing, cleaning or replacing the crucial tools of your trade. Depending on the work you do, the expenses you can claim for will vary. Electricians, for example, may have to fork out for replacing damaged electrical tools. Scaffolders, meanwhile, may find themselves out of pocket on maintaining safety gear and so on. The basic rule is that, if you need it to work and you’re paying for it yourself, it could count as part of your tax refund claim. That goes for any food and accommodation bills you rack up while on the road, for instance. Even fees and subscriptions to professional bodies and unions can qualify, along with certain types of training, as long as it’s all essential.
One regular cost that basically every construction worker has to contend with is work travel. In fact, for most people, that’s where the bulk of their yearly tax rebate comes from. If you travel for work, and not just to work, then you may have a refund claim. That means the taxman’s not just going to stuff your pockets full of cash every time you put your key in the ignition. There are specific rules on the kinds of work travel that count for tax rebates. For example, if you always work in the same place and drive there from home every day, that’s just a regular commute. You can’t claim anything for that. In the building trade, though, most of the real work gets done at “temporary workplaces”.
In HMRC’s eyes, a temporary workplace is a site you’re working at for under 24 months. As long as you remember that rule, you shouldn’t go too far wrong. As with everything else in the tax world, though, things are never quite as simple as that. For instance, if you spend less than 40% of your time at a workplace, it might count as temporary even if you’re there for more than 24 months. Knowing exactly where you stand is the key to getting the most out of your tax refunds, which is why so many people call in the professionals to handle their claims.
Here’s another example. If you end up working at the same workplace for longer than you were originally expected to, your situation can change. In that case, you can usually still claim for travel to and from your workplace for that original 24-month period.
This is another area where HMRC’s rules can get a little tangled. Sometimes, you change workplaces without making much difference to your travel time and costs. For the new workplace to count as separate from the old one, both the travel cost and physical journey made must be different. As you can imagine, there's quite a lot of wiggle room in the definitions here. Of the two factors, though, the cost is usually the main decider. If there’s not enough of a difference in the taxman’s eyes, then he’ll probably say you’ve accepted a permanent workplace when you move to the new site. Naturally, that also means your old worksite no longer counts as temporary either.
Just to show this working in practice, let’s assume Bob the joiner accepts a job on a site that’s set to last 18 months. After a while, though, things change:
Off course, that’s just one example of the weird little wrinkles in the taxman’s rules. Things get even stranger if your job takes you to a range of places over a region. In some cases, if your travel costs and times don’t vary much, it’s actually possible for the whole geographical area to be considered your permanent workplace! Again, knowing exactly what you can and can’t claim for is the only way to steer clear of trouble.
HMRC calls you a site-based worker if you work at a succession of sites. You'll usually only work at one site at a time, but there are exceptions to that. Either way, HMRC will look individually at each of the sites you visit to work out if they're temporary or permanent workplaces. For the most part, this will come down to whether or not you work there for longer than 24 months at a time. Again, though, there are some complex rules that can change things. For example, if you might reasonably expect to work at the same site for practically all of the time you're in a particular employment, then that will often be classed as your permanent workplace even if you end up being there for under 24 straight months. As always, RIFT will steer you right so you never end up missing out on the tax refunds you're owed.
When you're travelling to different sites as a core part of your work, some or all of your daily travel can qualify you for a tax rebate. What you're actually owed will depend on the kinds of work travel you're doing. For instance, if you drive to a main office in the morning, then spend your day shuttling between various other sites, then you've got a fairly complicated travel situation. Your journey from home to the office, for instance, would probably count as a normal commute, meaning you can't claim back any tax for it. All the other mileage you do during the day, though, could count as travel to temporary workplaces, allowing you to include it in your tax refund claim.
HMRC won't count any ordinary commuting costs when working out the mileage you can claim a tax rebate for. That's why it's important to understand which kinds of travel earn you tax relief. An "ordinary commute" means a journey to a regular, permanent workplace. More specifically, if you're working at the same site for more than 24 months on the trot, then HMRC will usually consider your travel to be a normal commute and won't pay out any tax refunds for it.
Things can get complicated if you work across multiple sites in the same area and your daily travel time and costs don't vary much between them. Sometimes, HMRC will call the whole region you're travelling around your "permanent workplace". This would mean you couldn't include those journeys in your tax refund claim. Talk to RIFT if you're not 100% sure where you stand.
If you're a self-employed subcontractor claiming for your mileage, you'll be claiming tax relief on your work travel expenses through your yearly Self Assessment tax return paperwork. Since you'll almost certainly be paying 20% tax at source on your payments through the Construction Industry Scheme, it's important to make sure you're getting the best out of the Self Assessment system. A key part of that is keeping good records of your essential work travel.
Okay, here’s where the rubber hits the road. The amount of tax you can claim back for your work travel depends on the rates and thresholds set out in the HMRC rulebook. They’re called Approved Mileage Allowance Payments (AMAP) and as of the 2019/20 tax year they look like this:
You won’t get taxed on your AMAP payments, so travelling 15,000 miles for work in a single tax year nets you a tax-free payment of up to £5,750. That breaks down as £4,500 for the first 10,000 miles you travelled (10,000 miles x 45p), plus £1,250 for the rest (5,000 miles x 25p). Obviously, this assumes you travelled in your own car or van. The AMAP rates for motorbikes and bicycles are lower, but they're still worth claiming.
Another point to keep in mind is that you have to be footing the bills yourself to claim - or part of them, at least. If you’re already getting at least as much as the AMAP rates say you should from your employer, you can’t claim tax back. However, if you’re getting less than that you can claim back the difference from HMRC. Also, if your employer's paying you a higher rate, then it'll be considered a "benefit". That means you'll owe some tax on the extra. It doesn’t matter how many vehicles you’re using for work. The AMAP rates don't exclusively apply to any one vehicle. The distance you travel in each of your vehicles is simply lumped in together to work out your payments.
On the other hand, if you're on the road for more than one job, then each is usually considered separately. That means you can claim the full AMAP rates for each. The jobs really do have to be separate, though. Working for associated companies or employers probably won't count, and you’ll get heat from the taxman if you try to bend the rules even slightly – so don’t do it!
If you’re taking other passengers to work with you in your car or van, you can claim an extra 5p a mile per passenger. The travel’s obviously got to be work-related for them as well, though, so don’t just load up the kids and family dog and expect a pay-out from the taxman.
The AMAP rates and thresholds are generally used when you’re doing your work travel under your own steam. However, that doesn’t mean you’re out of luck if you hop the bus to your temporary workplaces. Even coughing up for public transport can get you a tax refund from HMRC. Instead of keeping track of the miles you’ve travelled, though, you’ll need to keep records of the money you’ve spent on tickets and so on. The taxman will always expect you to back up your claims with evidence of what you’ve spent, so don’t lose your paperwork.
Once again, if your employer’s reimbursing you for your public transport costs, you can’t claim any tax back for them. If you’re not getting back as much as you’re spending, though, you might still have a tax rebate claim.
If your boss stumps up for a company car for you, you can often still claim a tax refund for your work travel. In some cases, though, your employer may also provide you with free fuel for private use. As always, you can’t claim a tax refund for any expenses you’re not paying yourself, or for anything that’s not necessary for work.
When you're using a company car, the mileage rates (in this case called Advisory Fuel Rates) are different. That's because you're only getting reimbursed for the fuel you're burning on your business travel. You aren't, for instance, getting anything toward maintenance costs, which are figured into the AMAP rates.
As of the 1st of September 2019, the company mileage rates for petrol and LPG vehicles are:
| Engine size | Petrol: amount per mile | LPG: amount per mile |
|---|---|---|
| 1,400cc or less | 12p | 8p |
| 1,401cc-2,000cc | 14p | 8p |
| Over 2,000cc | 21p | 14p |
For diesel vehicles, you're looking at:
| Engine size | Diesel: amount per mile |
|---|---|
| 1,600cc or less | 10p |
| 1,601cc-2,000cc | 11p |
| Over 2,000cc | 14p |
Hybrid cards count as either diesel or petrol, as appropriate and there's a separate Advisory Electricity rate of 4p er mile for electric vehicles.
When your job has you trekking overseas to temporary workplaces, your tax rebates can get complicated. You might be using a bunch of different types of transport (personal vehicles, trains - maybe even a helicopter or two) and stacking up a load of additional costs along the way. The best advice is always to keep hold of your records, from tickets bought and miles driven through to overnight hotel stays and food bills. These scraps of paper are your ammunition when you go up against the taxman to claim your refund.
Remember - HMRC will never try to cheat you. That’s not how this works. They will, however, insist that you prove every penny you’re owed. Get professional help if you’re having trouble, and never settle for less than you’re due.
With travel from home to work, everything depends on whether you're doing a normal commute or heading out to a temporary workplace. If your travel distance and costs stay basically the same for over 24 months, for example, HMRC might say you have a permanent workplace even if you actually travelled to more than one site over that time.
In general, though, you can claim for mileage from home to work any time the site you're travelling to is somewhere you work for under 24 straight months.
You don't necessarily need to keep all your fuel receipts to claim a tax refund for your work mileage. Since the tax relief rules for work mileage are supposed to consider general upkeep of your vehicle as well as your fuel costs, HMRC has set out specific rates you can claim per mile you travel in a tax year. If you're travelling in your own car, van, motorcycle or even pushbike, there are rules to let you claim back tax based on your mileage. The most important records you'll need to show HMRC for this are the places you've worked and when you were there.
When you claim travel expenses, the important thing to show HMRC is the total number of work miles you've travelled in a tax year. The Approved Mileage Allowance Payment rules have the following rates you can claim as a tax refund—and again, it's more important to record your actual mileage, rather than cling onto receipts from the petrol station:
Yes, when you're travelling to temporary workplaces, the total mileage you're claiming a tax refund for will include journeys to and from your sites.
Interest rates change over time, and that could be good or bad for your mortgage repayments. Depending on how the market rates vary year on year, a non-fixed mortgage can see your monthly repayments drift up and down. This can make your basic budgeting tricky. A fixed-rate mortgage gets around this problem by setting your interest rate in stone, at least for an agreed period. No matter what happens to interest rates in that time, you'll always know what you'll have to pay each month. Once the set period runs out, you can fix your rate again or not.
Fixed-rate mortgages can be a great option for first-timers without a lot of flexibility in their budgets. You'll always have a clear picture of your repayments, so planning out your financial future gets a lot easier. If mortgage interest rates go up, you'll be protected for as long as your fixed-rate period lasts—and you'll at least have a heads-up in advance of what'll happen when that period expires.
The obvious flip-side of that coin is that you won't feel the benefit of a drop in interest rates, since you'll still be paying at the higher level you agreed to. While that's a genuine worry to weigh up, it's worth remembering that interest rates have been creeping upward in recent years—to a 13-year high as of June 2022.
Okay, so a fixed-rate mortgage doesn't have all the answers. What are the alternatives? Another popular option is the tracker mortgage. Instead of a pre-set rate of interest on your repayments, your rate will be tagging along with the Bank of England's so-called base rate. This is absolutely the most important interest rate in the UK, and it affects a huge range of other interest rates you might find yourself dealing with throughout your life.
The length of time your interest rate will follow movements in the Bank of England's base rate depends on the type of tracker you've picked. A lifetime tracker, for instance, follows along with the Bank of England for the full length of the mortgage. Meanwhile, a term-tracker mortgage might only track for up to 2- 3 years.
So, what are the up-sides and down-sides to a tracker mortgage? Honestly, you've probably guessed them already. If the base rate goes down, so does the interest on your mortgage repayments. If it goes up, though, you'll be paying more each month. As we mentioned above, the last few years have seen a gradual but steady creep upward in the base rate. In June 2022, for instance, it hit 1.25%, which is the highest it's reached sine the big banking crisis of 2008. On the other hand, the COVID-19 pandemic saw the base rate plummet to 0.1%. If can be a bit of a roller coaster if there's a lot of disruption in the economy, but in the right circumstances a tracker mortgage can still pay off well over the longer term.
A discount mortgage is one where your lender uses their own "standard variable rate" (SVR) as the starting point for your mortgage repayments, but they bring it down by a set percentage so you don't end up paying the full whack. Standard variable rates are generally set by lenders themselves. That means they can charge more or less whatever they want—although they've obviously got to try to stay competitive enough to attract borrowers in the first place.
As the lender's SVR changes, the rate of interest you're paying will wobble up and down with it, but you'll still get your discount applied—at least for as long as the discount lasts. Once that period expires, you'll generally be shifted onto the SVR as normal. Some mortgage types reduce your discount percentage in stages over time, so the saving you're making will go down along with it. Depending on the deal you're on, there might also be set limits as to how high or low your interest rate can go.
With an offset mortgage, you're basically tying your savings and mortgage together. Sounds confusing, right? It's actually not that complicated when you get into it. Essentially, the amount of cash in your linked savings account brings down the percentage of your mortgage that you're actually paying interest on. So, for instance, if you've got a mortgage for £200,000 but you've got £50,000 in your linked savings account, you'll only be charged interest on £150,000 of your mortgage amount.
This kind of deal can obviously be great if you've got a lot of savings to lean on—especially if your month-to-month income's a little harder to predict reliably. Self-employed people, for instance, can often have irregular earnings. Bringing down the amount you have to repay each month with an offset mortgage can be a strong move, as long as you've got the savings to make it worthwhile.
Fancy trying your hand at the landlord game? That's exactly what buy-to-let mortgages are designed for. This probably won't be a good option for first-time buyers, though, with minimum deposits often ranging from 20%-40% and relatively high interest rates to deal with. You'll also need a decent credit score to land one of these deals, along with a pretty steady income.
So, all that aside, how is this different from a normal mortgage? Well, for starters, your potential lender's going to be keeping one eye fixed on the kind of rent you're likely to be able to get from your property. Ideally, they'll expect that to more than cover the mortgage repayments themselves. Depending on your expectations and goals, you could go for either an interest-only mortgage deal or one that gradually pays off the capital. Interest-only mortgages obviously have lower monthly repayments to cough up, and they're pretty popular with landlords for that reason. They'll still leave you owing a large amount of money on the property, though, since you'll have to pay back the full loan amount in a lump at the end of the mortgage term. Also, throughout the whole lifetime of the mortgage, the amount you're being charged interest on won't go down, meaning it'll end up costing you more than a repayment mortgage on the same property would.
With a joint mortgage, you can share the load of your monthly repayments with one or more other people. You'll all be collectively responsible for keeping up the repayments, and will obviously share ownership of the property itself. Joint mortgages, naturally enough, are popular with couples, but there are plenty of other groups of people willing to team up to buy a property.
As for the advantages, one of the biggest is that you'll have a much wider range of properties to choose from. By combining the incomes of everyone in your group when you apply for your joint mortgage, you'll have a lot more cash to play with when you're house-hunting. There's some bad news along with the good, of course. For one thing, it's not just your combined earnings that your lender's going to consider when deciding if you're a safe bet for a mortgage. If one of you has an iffy credit history, for instance, that can easily count against you. Also, things can get complicated fast if you aren't splitting the deposit and repayments equally—particularly if, somewhere down the line, some of you end up wanting to sell the property while others don't.
So, what happens if you can't quite seal the deal on a mortgage on your own? Maybe you don't quite have a strong enough credit history, or enough money coming in to convince a lender you can cover the deposit and monthly repayments. In that situation, a guarantor mortgage can pry open doors that you'd otherwise find slammed in your face. Basically, what you're doing is calling in some back-up in the form of another person with a more solid financial history than your own. They guarantee the repayments for you, meaning they take on responsibility for them if you run into money trouble and can't keep them up. Obviously, you can't just pick anyone to be your guarantor. They'll need to be a homeowner themselves, for example—plus they'll need to be able to show that they can afford to make any repayments you'd otherwise miss.
We talked a little bit about mortgage rate caps earlier, when we covered discount mortgage deals. With a capped rate, your interest will still drift up and down according to your lender's SVR. However, you'll always know that there's an absolute ceiling on how high it can go. As with other mortgage options, there are positives and negatives to this. On the up-side, assuming your upper interest limit is set somewhere fairly comfortable, you shouldn't have any real worries about being able to afford your repayments. On the down-side, though, your mortgage could also have a "collar" rate—meaning a minimum level your interest will never drop below. You're pretty much trading away the potential benefits of interest rates dropping in order to kill off the risk of them soaring.
There really is no single, simple answer to the question of which mortgage is best for you. It's all about weighing up your whole financial situation and balancing the risks and rewards of the various available options. The key to making that decision, as always, is understanding how what those options have to offer. Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
For the most part, mature students are treated more or less the same as anyone else who works while studying. However, it’s worth pointing out a few things that might make a difference to what you pay and qualify for. If you stopped working part-way through a tax year to begin your studies, for instance, you might be able to claim back some of the PAYE tax you’ve paid. Also, in that situation you should put a little thought into what’s happening to your National Insurance contributions. Taking a break from working can cause major headaches down the line with your State Pension entitlement. To keep your NICs rolling, you can make voluntary Class 3 contributions to stop your studies interfering with your eventual pension.
Other circumstances - like studying while bringing up a family, can affect your tax situation. You might qualify for things like National Insurance credits or Universal Credit, for example. Always check what you qualify for when you’re making decisions about how you work and study.
There’s a range of allowances and other help available to students with disabilities. The Blind Person’s Allowance (BPA), for instance, works like a top-up to your tax-free Personal Allowance if you’re blind or partially sighted. The rules vary a bit, depending on where in the UK you live, but the basic BPA for 2019/20 comes to £2,450, meaning you can earn that on top of your Personal Allowance before you start to pay tax.
Another boost to students with disabilities is the Disabled Students Allowance (DSA). This is a grant, meaning you don’t need to pay it back or count it as income for tax. If you don’t finish your course, you might still have to return it, though. What you can get and how you get it depend on your specific needs and the type of course you’re on (full-time, part-time, postgraduate), but there are 3 basic parts to the DSA, covering:
In general, you’re taxed in the same ways whether you’re a part-time or full-time student. However, if you’re studying part-time you might well have other obligations and opportunities that juggle your tax situation around. We’ve already talked about students with family responsibilities, for instance. Similarly, you might find you’ve got time for more than one job around your studies. This can get a bit messy, since HMRC will classify one of your jobs as your “main” one. That’s the one your Personal Allowance will apply to. If your main job pays less than your Personal Allowance, you can end up losing out, since your other job will be taxed from the very first penny it pays. Tax code problems are among the main reasons why people pay too much tax, so it’s important to check your code to make sure it’s correct.
Almost everyone in the UK gets a tax-free Personal Allowance, which is the amount you can earn in a year without paying any tax. If you earn less than your Standard Personal Allowance, you won’t pay any tax on it at all. If you earn more, only income above your Personal Allowance will be taxed.
Here are some other UK tax allowances you might not know about:
| Individuals (all) | £12,570 |
| Marriage allowance* | £1,260 |
| Minimum married couples allowance* | £3,530 |
| Maximum married couples allowance* | £9,125 |
| Income limit for married couple's allowances | £30,400 (allowances are abated if income limit exceeded) |
| Blind person's allowance | £2,600 |
| Dividend allowance | £2,000 |
| Property allowance | £1,000 |
| Trading allowance | £1,000 |
| Personal savings allowance (basic rate taxpayers) | £1,000 |
| Personal savings allowance (higher rate taxpayers) | £500 |
| Income limit for standard personal allowances | £100,000 (allowance completely lost once taxable income exceeds £125,140) |
**Transferable allowance available to married couples and civil partners who are not in receipt of married couple’s allowance. The recipient spouse cannot be liable to higher or additional rate tax.
** Tax relief given at 10% where one partner was born before 6/4/1935
Okay, this one’s going to be a little harder to pin down. There really isn’t any exact figure you can set as a universal saving target for people looking to move out. A lot depends on where you’re going, for example. If you’re dead-set on finding a rental deal in London, you’re going to be coughing up a lot more in monthly payments than if you’re outright buying the same basic property in the Midlands.
Having said that, there are still some simple benchmarks you can set for your saving. A good rule of thumb to remember is to aim for about 3 months’ worth of your expected living costs stashed away. With that nice little cash cushion comfortably stuffed, you should be able to ride out any unexpected setbacks, like suddenly finding yourself out of a job and with bills to pay.
When you claim a tax rebate from HMRC, you can choose how you want to get your money. The fastest way is usually to have your refund transferred directly into your bank account. If you prefer, though, you can ask HMRC to send you a cheque instead.
It usually takes HMRC about 8-10 weeks to process a typical tax refund claim. The wait can be longer at busier times of year, though, or if your claim’s complicated and they need to get more information from you.
It's possible to claim for the last four tax years. That could add up to a substantial refund value.
No, you cannot claim for PPE (Personal Protective Equipment). If your job requires you to use PPE your employer should either:
If you want to claim the exact amount spent then yes you will need a copy of your receipts. If you don't have receipts you can claim via flat rate expenses which allow you to claim tax relief for a standard amount (a flat rate) each tax year.
It can take between 8-12 weeks for HMRC to process your tax refund claim.
Okay, so you’ve got a budget and a strong idea of which costs you can control and which you can’t. That’s pretty much half the battle won already! Now let’s get into some specifics.
Shopping online is incredibly convenient – and honestly, it’s also just fun. The temptations are endless and the systems are designed to make it as easy as possible to dip into your digital pocket. Subscribing to a string of mailing lists can be murder on your finances, though, and businesses are experts at using them to part you from your cash. These aren’t just anonymous adverts we’re talking about. Email lists will often “speak” to you by name and use information companies have about you to get you to “impulse buy” what they’re offering. When you take your name off those lists, you kill the sense of urgency they’re desperate to provoke. It’s not necessarily about stopping you from buying; it’s about giving you a better change to think it over first.
Obviously, it’s good to get advance notice of upcoming sales and offers on things you actually need. The thing is, sales happen all year round, so you don’t need to jump whenever one crops up via email. Buy the stuff you need when you need it, not when you want it.
If you find yourself making tough choices between heating your home and feeding your family, no amount of mental health support will solve your immediate crisis. That’s when you need to fall back on emergency resources like food banks and “Community Fridges”. A food bank will generally need you to have a voucher to use, but Community Fridges usually don’t. They’re also good resources for learning new skills and ways to reduce household food waste.
As for the benefits you should be claiming, you might be surprised by what you qualify for. Benefits like free social care and Disabled Facilities Grants can be a genuine lifeline for many. Your local council might also have a range of schemes and services available for people on lower incomes. If you’re suffering from mental health problems yourself, there may be extra benefits you should be claiming.
Energy bills are a massive worry all across the UK, and the industry regulator Ofgem can offer advice and information on how to get help with rising costs. If you’re struggling, it’s also worth getting in touch with your energy supplier directly. Many of them have options for people facing unmanageable bills.
f you’ve read any of our articles before, you’ve probably already got a decent grasp on the benefits of various types of savings account, along with their alternatives. If you need to brush up, feel free to check out guides like “6 Ways to Save for a House Deposit” or “5 Alternatives to Saving Accounts”.
The way savings accounts are handled has seen some pretty serious shake-ups in recent years, meaning a lot of people actually end up paying no tax at all on their interest. Before April 2016, tax was taken from the interest on most savings accounts at the highest rate you paid, which is 20% for Basic Rate taxpayers. Now, instead, you can earn a chunk of untaxed interest that’s based on the tax bracket you’re in. Basic Rate payers can get £1,000 before paying tax, for instance. At the Higher Rate, the amount you can earn drops to £500 per year, though. Keep in mind that if you're getting interest from other tax-free sources like cash ISAs, it won’t count toward this “Personal Savings Allowance”. Any tax you do owe on your interest will come out through your PAYE tax code, or via Self Assessment if you're signed up for that.
Savings accounts are good for keeping your cash protected, since they’re covered for up to £85,000 of losses by the Financial Savings Compensation Scheme on the off-chance that the wheels ever fell off the banking system. While they’re not a super-efficient way to grow your savings, particularly when inflation’s high and interest rates are low, the important thing is that you’re setting your cash aside somewhere it won’t get eaten into by your day-to-day spending.
Setting up a budget can feel like a steep climb if you haven’t done it before. Again, you can look through our guide articles for the basics, but there are also a few really useful apps out there to help you get organised. Some of them make saving so easy it’s practically automatic! For example, there are “round-up saving” features in savings apps like Monzo, Natwest and Moneybox that actually save cash as you spend it. This basically rounds your spending up to the nearest pound, with the extra change socked away in a savings account. It might not sound like it’ll take you much of the way toward your used car on its own. However, as anyone who’s tried the 1p Money Saving Challenge will tell you, those pennies really mount up over time.
When you get right down to it, budgeting for a car (or anything else) just means taking a little more control over your money. It’s honestly something we should all be doing anyway, especially when the cost of living’s soaring.
Job done – you just made a budget! If you want to dig a little deeper into making the most of your money, have a read through our “4 Fixed Income Saving Strategies” guide to learn about things like “zero-based budgeting” and the “50/30/20” rule.
This is something that can easily trip you up if you’re not careful. When you’re budgeting for a car, you’ve got more than just the asking price to factor in. You’ll also need to think about insurance, tax and the costs of dealing with breakdowns and servicing. Make sure you know what kind of CO2 emissions your new vehicle will be pumping out, too. You’ll be glad you thought ahead about that when you’re paying your Vehicle Excise Duty. You can find the latest rates and thresholds on the gov.uk site.
One smart idea is to keep separate side-budgets to cover things like parts or accessories. You’ll also need to think about coping with unexpected situations out on the road. The car you’re buying might not come with fixed-term roadside assistance, for instance. You absolutely don’t want to be having your first long, hard think about this while you’re already stuck in a lay-by somewhere.
If you’re laying down a deposit then paying the rest off in chunks, think about how much you can afford to front up at the start. The higher the deposit, obviously enough, the lower your monthly repayments will be. It’s a bit of a balancing act, but working out what you can afford like this is a good habit to get into, and can help you avoid any nasty surprises later on.
Another critical thing to look at is the fuel consumption of any vehicle you’re seriously considering. It might be the car of your dreams at an absolute bargain price. However, if it’s a real gas guzzler you’ll be paying a painful charge any time you drive through an ultra-low emission zone. Worse still, you might find yourself banned from certain routes altogether.
It’s not just emissions charges you’ll want to look out for, of course. There’s also the basic, day-to-day cost of topping off your tank to consider. Before you slap down your hard-earned savings on a used car, make sure you know what kind of running costs you’ll be paying down the road.
One final tip, given that you could be coughing up anywhere from a few hundred to many thousands of pounds on your car: look into its background before you buy. Make, model, registration and general history on the road can make a big difference to the value of a vehicle. If the price looks too high – or especially if it’s suspiciously low – ask a few questions before parting with your cash. While you’re at it, be absolutely certain the car’s in roadworthy shape. Even if the asking price is amazing, you’ll still lose out in the longer run if you end up on a never-ending cycle of expensive repairs.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
With the costs covered, let’s look at what you actually get for your money. Platforms with subscription fees rely on pulling you in with big-budget blockbusters and high-profile original content. Once you’ve picked off a few obvious classics and new releases, though, what else are they offering to keep you subscribed? With Netflix, for instance, you can expect a big push toward massive exclusives like Stranger Things and The Sandman. Amazon Prime’s originals are also impressive, from bonkers superhero series like Invincible and The Boys through to fantasy epic The Lord of the Rings: The Rings of Power. For sheer breadth of content, though, you’ve got to go a long way to beat Disney+. Whether you’re a Marvel fan, a Simpsons lover or just addicted to high-quality family entertainment, it’s definitely worth checking out what’s showing at the House of Mouse.
Again, this is a very common type of loan that most people have at least heard of. Unlike a personal loan, the cash you’re borrowing is earmarked for a specific purchase, so you’ll find yourself dealing with some extra rules and considerations. For one thing, your vehicle loan will almost certainly be secured against the vehicle you’re buying. That means if you don’t keep up your end of the deal, you’ll stand to lose the car itself. You might not have to borrow the full amount the vehicle costs, of course. If you’ve already made any down payments against the value, those will bring down the loan amount you need.
As with other types of loan, you’ll probably be making repayments for years to come. In fact, as car prices continue to grow, vehicle loan terms are extending along with them.
Doing volunteer work while you’re studying can be a great way to get real-world experience and training. A lot of students decide to take a crack at this, to boost their chances of landing a related job after graduation. Typically, with volunteer work, you won’t be getting paid. That means no worries from the taxman, but also doesn’t help much with paying your bills. If you’re being paid at all, though, HMRC will want to know about it. If all you’re getting is your expenses reimbursed, then things are pretty simple. Otherwise, you’re looking at actual, taxable income (but remember your tax-free Personal Allowance).
Depending on how your work’s set up, you might be classed as employed, self-employed or purely a volunteer. It’s important to get this straight from the outset, as your employment status can make a real difference when you’re doing things like claiming benefits or tax credits. Voluntary work without pay won’t trip you up on these, but other circumstances can.
You may also find yourself on a training contract, or being “sponsored” by an employer. A training contract basically just means that an employer’s offering some kind of training as part of the work you’re doing. If this involves you getting any costs paid for courses, travel or other necessities, then those are tax-free. It makes no difference whether your employer stumps up for them directly or reimburses you.
While you’re on employer-sponsored training, your pay usually still counts as normal for tax and NICs. However, there’s a wrinkle in the rules for people whose employers let them take a break from work to study. It’s called Statement of Practice 4/86, and means that employers can sometimes pay to support you while you’re studying. In those cases, the payments you get won’t be taxed. You have to be studying full-time for at least a year to qualify, and to put in at least 20 weeks of study in the year. As of 2019/20, your employer can pay you up to £15,480 tax-free. Your tuition fees are handled separately from your day-today costs like accommodation and travel. They’re still exempt from tax, though, as long as the course you’re taking is related to your work.
There’s another side to this coin to think about, of course. If you’re a student on a work placement as part of your degree, you may or may not be getting paid. In fact, there’s no technical obligation for employers to fork over a penny. Even if you are getting some cash, you won’t be legally entitled to the National Minimum Wage. On the other hand, you’ll still be counted as a student for this time, so won’t be paying Council tax either. The bottom line is that, unless your income falls under one of HMRC’s exemptions or allowances, it’ll be taxed as normal.
If this isn’t your first time getting home repairs or renovations done, you might still have some useful materials knocking around in a shed or garage somewhere. If anything rings a bell when you’re listing out what you need in your spreadsheet, stop and think about whether you actually need to buy your materials new.
The question of what counts as a uniform trips a lot of people up. You can't simply claim for whatever clothes you wear for work. Your clothing needs to be identifiably a necessity of your job to count. For instance, a normal suit won't usually qualify for tax relief, even if your employer insists you wear it. A jumper with a company logo, however, would entitle you to tax relief (unless it's a detachable badge or something similar).
You can't necessarily claim for cleaning your clothes just because they were given to you by your employer, either. If your "uniform" is something you could reasonably wear outside of work, you can't expect any cash back from HMRC.
There are obviously some difficult grey areas here - and we're not just talking about dirty collars. A lot of people either end up not claiming what they should, or getting stern looks from the taxman for claiming too much. If you're not sure whether your work clothes count as a uniform, get some professional advice to find out exactly where you stand.
When you make the decision to buy a house, you’re taking on what’ll probably be the largest debt you’ll ever have. Yes, that sounds scary, and it’s something you have to take seriously. However, typical mortgage interest rates aren’t nearly as high as you’d find on “smaller” debts like credit card balances. Plus, you’re making an important investment that can help steer your finances in the right direction for decades to come.
Location is everything when you start your house hunting expedition. Property prices can be wildly different around the UK, so you’ve got to weigh the asking prices against other factors, like where you work. On average, though, the typical first-time house buyer is probably looking at around £212,000.
So this is where you’ll usually encounter your first – and potentially largest – hurdle: the deposit. Depending on your situation, you could typically be asked to pay anywhere between 5% and 20% as a deposit. The exact figure will vary with the kind of property you’re buying and where it’s located. In general, though, the more you’re paying up-front, the better the deal you’ll tend to get on the actual mortgage. If you’re working somewhere with higher average property prices, like a major city, you might want to consider looking for a home a little further out and commuting in. The asking prices tend to drop the further out you look. Of course, you’re balancing that against your additional travel costs, so you’ve got some careful calculations to make either way. It might turn out that you’re actually better off toughing out the higher deposit now and taking the longer-term savings (and convenience) of not commuting.
So, let’s assume you’ve picked a place to buy and scouted out the kind of deposit it’ll take. Let’s look at some ways to help bring that number down.
It’s quite possible that employees might be offered a voluntary redundancy deal instead of making staff cuts directly. If that happens, there’s a chance you could be able to get a better deal than the basic minimum the law or your contract specifies. Either way, make sure you understand exactly what’s on offer before making your decision.
All the same basic warnings and precautions apply to voluntary redundancies as compulsory ones. You need to be sure you’ve got enough of a financial safety net to protect you if the hunt for your next job takes longer than you’d hoped. Before taking voluntary redundancy, give some thought to the state of the industry you work in. Will you need to up your skills or retrain to land a decent replacement job? These things can take time and money.
Another thing to watch out for is whether voluntary redundancy could count against you in other ways. It might affect the types of benefit you qualify for, for example. Also, if you’ve got payment protection or other insurance policies, they might refuse to pay out if you chose voluntary redundancy. The main thing to do is think ahead. When you’re dealing with something as important as your family finances, failing to plan is the same as planning to fail.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
The form comes in 4 parts. Part 1 goes to HMRC, while part 1A is the one you keep for your own reference. Parts 2 and 3 are for your next employer, assuming you’re moving on to another job. You might also be asked to show your P45 paperwork if you find yourself at a Jobcentre Plus.
The bits that go to your new employer give them all the information they need to get you set up. That means your tax code, for one thing, but also your earnings and tax for the year.
The main thing people tend to need their P45s for is keeping their tax information straight when they’re switching jobs. Getting stuck on the wrong tax code can be seriously bad news, so this is something you really need to stay on top of.
The form does have some other uses, though. If you have to file a tax return, for instance, you’ll need the information from your P45 to get it done. Typically, people on PAYE don’t have to worry much about tax returns. However, there are several reasons why you might still have to use the Self Assessment system while you’re on PAYE. If you’re claiming a tax rebate or getting extra income outside your normal job, for example, you might well find yourself using Self Assessment. You’ll be glad of your P45 then.
P45s can also be worth their weight in gold (figuratively, at least. They’re pretty light) when you’re claiming any social welfare benefits. Basically, if you get one, don’t throw it away. Remember, you can’t get a replacement P45 if you lose it.
It might not seem like much consolation when you suddenly find yourself out of a job, but a redundancy doesn’t mean you did anything wrong. That’s an important point to realise, and not just to save your own pride. Redundancies happen all the time in businesses, and the sad fact is that most of the people they affect did nothing to deserve it. It just happened that their employers needed to slim down their workforces for some reason – generally just to cut back on their overall costs. In some situations, the business might be restructuring, making certain job types less necessary. In others, the company might actually be going bust. However it happens, the end result is the same – the job you used to do just doesn’t exist any more.
Stamp Duty Land Tax (SDLT) is a charge you pay in England and Northern Ireland when you’re buying most types of land or residential properties. Scotland and Wales have their own system, but either way what you pay basically depends on the value of what you’re buying. There are several different SDLT bands, each with its own rate of tax - but if you’re paying £125,000 or less for the land or property you won’t get hit with SDLT at all.
As with other kinds of tax bands, you won’t find yourself paying the top rate on the whole value of the property. Instead, you pay separate rates on separate portions of the overall price – the same way you only pay higher rate Income Tax on the chunk of your income that’s over the basic rate’s upper threshold.
The first thing to look at is how much cash you’re bringing in each year. Once you’ve got a clear picture of your income, you can start to decide how much of it should be saving. So, for instance, if you’re following the usual kinds of advice floating around, you’re probably trying to stick to the “50/30/20 rule”. If you don’t know about this, it basically just means you’re trying to handle your spending so that:
The thing is, that rule really only works when you can afford to stick to it. Not everyone can balance their books so their essentials get covered that easily, for instance. Even so, there’s an important lesson to learn here. All these kinds of “rules” are really trying to do is help you get your priorities straight. For instance, it won’t do you any good to stock up your savings if you’re digging yourself into debt to do it. Interest on things like loans and credit cards will almost always pile up faster than it does on savings. In the long run, you’re just digging a deeper hole for yourself by ignoring your debts.
As for your actual savings, a basic target to aim for is having an “emergency fund” that could cover your essential costs for 6-12 months. With a bit of luck, you’ll never need to rely on it for that long – but even so, it’s worth having so you can handle unexpected stuff like a job loss or some sudden repairs. Don’t fall into the trap of sticking your emergency fund where it’s hard to get at, either. Basically, keep it in something like a normal savings account where you’ve got good access to it in a pinch.
So much for the basics. Now let’s look at how much of your salary you should be saving at a few rough income levels:
So, at around £20,000 a year, keeping a tight grip on your most expensive debts is a smart move. This is where focusing on paying those down before worrying about saving money really pays off. Depending on where you’re borrowing your cash from, you might be looking at interest rates of anywhere between 9% and 20%. Those will creep up on you fast if you leave them sitting there. Once your essential costs are dealt with, bump paying off these debts to the top of your priority list. When you’re in the hole, the first thing to do is stop digging.
Of course, that doesn’t let you off the savings hook altogether. Saving money where you can, and as regularly as you can, is always a good habit to get into. In fact, you could well end up better off by saving small amounts more often than by dumping the occasional lump of cash into your emergency fund. It’s about getting used to saving whenever possible, without straining your wallet too hard.
Even just tucking away £50 a month can be a really healthy habit. That’s £600 per year saved with surprisingly little effort. At the same time, you’re building momentum in your saving routine and confidence in how you handle your cash. This is how serious emergency funds get built – one brick at a time.
As we already said, your saving power is going to depend very much on your personal circumstances. With an income nudging up toward £30,000 a year, you’re going to find a few more savings and investment options opening up.
Let’s assume you’re already keeping up a few of the good habits we’ve already mentioned. You’re getting your essentials paid, your debts are under control and you’re saving regularly. Now’s the time to take a second look at that 50/30/20 rule we talked about. If you get this thing up and running, it’ll help you steer clear of overspending, make sure your critical costs are met and keep a steady flow of cash into your savings – and here’s where things get “interesting”.
If you put those savings into a standard savings account, you’ll be protecting them through the Financial Services Compensation Scheme (FSCS). Basically, every eligible person is covered up to £85,000 per bank, building society or credit union they’re saving into. On top of that, as we already said, savings accounts like this can allow you to get your hands on your cash in a hurry. This makes them a great place to stash money you might need soon for major purchases like a house deposit.
The downside to savings accounts is that they don’t pay out a lot when interest rates are low. Worse still, when there’s high inflation at the same time the money in your account gradually gets less valuable. Suppose, for instance, you’re getting 2% interest a year on your savings, but the rate of inflation is 4%. Over a year, your money’s actually gone down in value by 2%.
So, what other options are out there? Well, you could start looking into stocks and shares, for one thing. These can come with better interest than a basic savings account, but they come with some pretty tangled strings attached. Investments like this carry some risk along with them, so they’re not a sure bet for building up your cash. That’s why they always come out of the 20% of your income you’ve set aside for them, keeping the cash that’s going toward your essential living costs safe.
Best beginner investment funds for 2022
However much you’re earning, the chunk of it you set aside for investments each year needs to be based on realistic expectations and goals. Having a savings target to aim for is great for motivation, but you’ll need to make a plan and stick to it to get there.
Okay, at £50,000 a year, you’re probably a little less handcuffed by your basic living expenses than you used to be. If your costs aren’t keeping up with your income, you’re going to have more savings cash to play with.
Your take-home at this point comes to £37,662 once you’ve paid out your Income Tax and National Insurance Contributions. That works out to about £3,139 each month. Using our 50/30/20 rule, this gives you £627.80 a month for savings and investments.
So, you’ve got your emergency fund nicely padded out with 6-12 months’ worth of spending cash. Now it’s time to take stock of your opportunities. You want to make the most of your money, obviously, but you’ve got to go into it with your eyes wide open. We’ve already talked a bit about risk, so now you’ve got to decide where the lines are drawn for you.
If you like to play things nice and safe, you’re probably going to have to make do with a lower “rate of return” on your invested money. That, in turn, will probably mean you end up pouring more money into the investments you choose. Stocks can be notoriously risky, but they aren’t your only option here. You might decide to vary things up a bit by throwing a few less volatile investments into the mix. Strap in here, because this is where things get a bit technical:
Once you get the idea of “diversifying” the investments you’re putting your savings into (basically, not dumping all your nest-eggs in one basket), you can go even further. You can diversify into different countries, for instance. You could also look into “emerging market index funds”, which are often seen a more dangerous investment since the economies they’re grounded in can be more volatile. As always, you decide up-front how much risk you want to take, and how much cash you want to risk. There are no guarantees, which is why you’re only using money specifically drawn from that 20% “savings” chunk of your income.
So that’s the high-risk, high-reward world of stocks in a nutshell. Honestly, this kind of thing is sort of a young saver’s game. As you get closer to your Golden Years, you’re probably going to want to play a little safer. In generally, that’s probably going to mean pulling your cash out of stocks and loading it into something like bonds instead.
A bond is a kind of “fixed term” investment. They’re like loans you make to a business, or even a government. You lend your money out in return for regular payments, at a pre-agreed interest rate. This means they’re generally safer than stocks, even if they don’t necessarily have the same pay-out potential. Once the fixed term of your bond expires (or “matures”) it’s paid back to you. Obviously, this isn’t a game to play with money you need at short notice. The smarter move is to work out when you’re likely to need the cash (at retirement, for instance), and work out your fixed terms from there.
A word to the wise here: “safer” isn’t the same as “safe”. Always remember that you’re still taking a risk when you invest in a bond. If the business you invest in goes bankrupt, for instance, you might have to wait a while until you get your money back. Depending on the situation, you might not even get back everything you’re owed.
Getting into good savings habits is one of the most important steps in making the most of your money. The 50/30/20 rule is really just the start of it, and as your income rises your choices get wider and harder. Don’t trick yourself into thinking that low-level, regular saving doesn’t matter. You’re playing the long game here, and it really does add up over time. Set a goal, make a plan and take it step by step until you get there.
Keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Form P46 is an older form that was replaced by the starter checklist. If you don't have a P45 to show your new employer when you start a job, you'll get a starter checklist to fill out so you end up on the right tax code. Some people still refer to the starter checklist as a P46.
If you're paid through the PAYE system, your employer handles your tax deductions and National Insurance Contributions (NICs) automatically. For self-employed individuals or those with additional untaxed income, the Self Assessment tax return system is used. Key deadlines for Self Assessment include January 31st for filing your tax return and paying any tax owed, July 31st for the second payment on account (if applicable), and October 31st for paper tax returns.
You’ll normally make your tax refund claim after the end of the tax year. Tax years run from the 6th of April in one calendar year to the 5th of April in the next. By the end of the tax year, you should have enough all the information you need to make a full tax refund claim.
Don’t worry too much if you’ve missed out on your uniform tax rebates from previous years. You can claim back the overpaid tax you’re owed from up to 4 years back.
We’ve touched on the legal situation of car mods already, but it’s worth spelling out. Some modifications are just plain banned, while others are on dodgy ground if they’re not fitted just right. Here are a few key examples to watch out for:
An ISA is a savings or investment account that you don’t pay tax on. Each tax year, the government allows you to save a certain amount of money without paying tax.
That maximum amount often changes when new government budgets are announced. If you’re new to saving though, ISAs are a popular choice. But remember, you must invest your money by April 5th for it to count towards this tax year’s allowance. Otherwise, it’ll count towards the following year’s allowance.
Depending on what you’re looking for in a savings account, there are all kinds of ISA out there to choose from. Here’s a quick breakdown:
Easy Access ISAs let you access your savings whenever you need without paying a penalty on the interest. This kind of account usually pays a smaller interest rate than other types of ISA, but if you need immediate access to your rainy-day fund, it can prove very useful.
Notice cash ISAs also let you withdraw cash from your account, but you’ll need to give a certain amount of notice in advance - it’s usually between 30 and 120 days. These will typically pay a slightly higher interest than easy access ISAs, so they’re good if you can wait to withdraw your money.
Fixed rate ISAs offer a higher interest rate than both easy access and notice ISAs. However, if you find yourself in a situation where you need to access your savings, you may pay a penalty on that interest.
Lifetime ISAs are popular if you’re thinking about saving for your first step on the property ladder. Made for those under 40, they’re a bit different to your usual ISA. You can only save £4,000 each tax year. However, the government will contribute 25% each month you save money into this account. That means if you save the full £4,000 over the course of the year, the bonus will take your total up to £5,000. And that’s before interest!
Be aware though: You can only really withdraw cash to buy your first home or if you’re aged 60 or over. If you withdraw at any other time, you’ll pay a penalty of 20%, which means a huge chunk of that bonus is gone.
If you’re planning on following the 50/30/20 method and putting away a steady amount of money each month, a regular savings account is worth considering. These tend to offer higher interest rates than easy access or fixed rate ISAs. And that’s because they have stricter Ts&Cs.
Some will limit the number of withdrawals you can make or the amount you can withdraw, while others require you to make a deposit each month. You’ll also find both fixed and variable interest rate options available, and you’ll get the advertised rate provided that you keep up with regular deposits.
After the term ends, you can withdraw your money without paying any penalties. So if you’re saving for something like a big holiday, wedding, or even a new sofa, check out the regular savings options out there.
Remember, this is not an exhaustive list. There may be other options on the market that we haven’t covered here. So as always, do your own research. Make sure you consider your full personal and financial circumstances and if you’re ever in doubt, speak to a financial advisor.
If you work in a kitchen, you're entitled to a range of tax reliefs on your unavoidable expenses. The things you can claim for depend on your circumstances. Your work clothes are a great example. If you're paying to clean, repair or replace your work clothing, you're entitled to a uniform tax rebate. This counts for your whites, your apron and anything else you're required to wear for work.
If you're responsible for supplying your own kitchen equipment, this can also qualify you for tax relief. Safety gear like non-slip shoes is a good example of an expense you can claim for. Essential utensils from knives to saucepans can also count if you're paying for them yourself.
Working in hairdressing takes a lot of specialised equipment. If you're paying for cleaning, repairing or replacing things like a uniform or tunic, you could qualify for tax relief. The key things to remember are that you have to be paying for the items yourself, and they must be essential to your work.
It doesn't stop with aprons and tunics, either. If you have to provide your own scissors, combs, hairdryers or clippers, you could have a claim. Whatever essentials of the trade you've shelled out for personally could go toward clawing back your tax refund from HMRC. Even if the individual costs are small, they still add up over time.
Mechanics face a lot of unavoidable expenses just to do their job. You've almost certainly got specialised clothing, and maybe even a uniform to take care of. If you're paying for laundry and upkeep of your work clothes, you could well be in line for a tax refund.
It doesn't stop there. Are you buying, repairing or replacing your tools out of your own pocket? What about your safety gear? Expenses like these are essential to your work, so HMRC says you can claim tax relief on them. Everything from a spark plug to a socket set could go toward your tax refund, so don't miss out!
Uniformed police officers know how tough the job can be on their work clothing. Luckily, the taxman knows it too and is willing to help out. If you're paying for the laundry and upkeep of your police uniform, you're entitled to a tax refund on your costs. In fact, the flat rate allowance for police is one of the more generous ones. Even if you don't typically wear a uniform on duty, you may still be entitled to claim the allowance.
Your tax refund isn't limited to just your essential work clothes, either. You could also qualify for tax relief on things like your Police Federation subscriptions. One quick note of caution is that some police forces have their own arrangements about claiming tax rebates for you. Check what your situation is before making a claim on your own.
A job in security can mean a lot of out-of-pocket expenses. HMRC rules mean you can claim tax relief for some of your unavoidable work costs. For example, if you're responsible for the cleaning and upkeep of your uniform, you can claim cash back from the taxman. This also counts for any protective clothing or equipment you're required to wear or use.
If you're shelling out for your own Security Industry Authority licences, you can claw even more cash back from HMRC. Depending on your duties, you may have paid for several SIA licences. It all counts toward your tax refund, so make sure you keep track of what you've spent on licences for:
Working aboard a commercial aircraft doesn't have to leave your taxes up in the air. Both pilots and air cabin crew can claim a range of tax reliefs on the necessary costs of the job. For a lot of people, that's going to start with their uniforms. Paying from your own pocket for laundry, repair or replacement of your work clothes qualifies you for a tax refund.
That's not the end of it, though. The rules agreed with the British Airline Pilots Association (BALPA) also cover a few essential pieces of kit. Sunglasses are included, as are things like flight cases, passports and even some training costs. Beyond the flat rate allowance, you may also be able to include other necessary expenses in your tax refund claim. For example, your BALPA subscriptions qualify, so always keep track of what you're spending just to do your job.
You don't have to be a pilot to claim a tax refund. Air cabin and flight deck crew can also get tax relief on a range of work expenses. Again, uniform laundry and upkeep is an obvious example, but there are plenty more. Visas and vaccination costs are covered by the system, and even small costs can add up over time to a surprisingly large tax refund.
Keep in mind that some airlines have their own arrangements for uniform and equipment allowances. These may differ from the HMRC amounts, so make sure you know what allowances apply to you.
Healthcare workers paying for laundry and upkeep of their work uniforms can get tax relief on their costs. HMRC has a flat rate allowance designed to make those expenses a little less painful to swallow, but that's really just the start. There's a whole range of unavoidable costs in healthcare work, many of which can be used to bring down your yearly tax bill.
One of the major costs for healthcare workers, from midwives to surgeons, is professional subscription fees. Depending on your actual job, you may need to be registered with a number of professional bodies. Those costs mount up, but so do the refund claims based on them. Examples of qualifying fees include:
That's really just the start of a very long list. If you're paying for insurance and you need to do your job, those costs count towards your tax refund, too. While it's great that so many expenses are included, it does mean that a lot of people in healthcare aren't getting all they're entitled to.
If you're a teacher, there are a few easily missed work expenses that could earn you a tax refund from HMRC. In general, these are for unavoidable costs that allow you to do your job. For example, if your work requires you to wear specific clothing, you can claim back tax on its laundry and upkeep. Sports clothing for P.E. teachers might be an obvious example, or any protective gear needed in a science or metalworking class. The basic rule is that, if it's necessary and you're paying for it yourself, it could qualify for tax relief.
Another area where teachers tend to miss out is subscription fees for professional bodies. Union subscriptions to organisations like the National Union of Teachers or for Institute for Learning fees all count.
As a lorry driver, you might be surprised at the out-of-pocket costs that count toward your tax refund claim. You might not think of the jumper you wear for work as a "uniform", but if it carries a company logo you might be owed some tax back. The same is true for any protective clothing or safety gear you need for your work. A high-vis jacket, for example, will often qualify as a work expense.
It goes way beyond just the clothes on your back, too. HMRC's tax rebate system is about making sure you don't suffer because of unavoidable work costs. It's still pretty easy to lose out, though. Some expense claims, like food and accommodation bills, might require some paperwork to back them up. You probably won't need to keep obsessive records, but any receipts you hang onto will help to put money back in your pocket.
Other easily missed refunds for lorry drivers include any medical examinations you have to take for your licence. Remember that the licences themselves entitle you to tax relief, whether for their issue or renewal fees. If you're paying for your digital tachograph smartcards yourself, make a note of what you're spending. It all counts toward your yearly tax refund from HMRC.
Like many other professions, workers in the gambling industry can claim a tax refund for some of their unavoidable costs. One major area that many miss out on is the uniform tax rebate. If you're required to wear a uniform for work and are paying for its laundry or upkeep yourself, you can make a claim.
Beyond your clothes, working in the gambling industry does come with few necessary expenses. Depending on your job, you might need to pay for a Personal Functional licence. This is particularly true if you have to handle cash in your work. If you pay for the licence yourself, then the fees can form part of your yearly tax refund claim.
Security staff are hugely important to the industry, and have a range of specific licences that apply to them. Security Industry Authority licences range from door supervision to the protection of cash and valuables in transit. However, the one thing they have in common is that they all qualify for tax relief.
When you set up a Limited Company, you have to submit annual accounts to Companies House and a company tax return to HMRC. The period covered by your tax return can’t be longer than 12 months, so if you’ve been trading for longer than that you may have to file two tax returns to cover the period of your first accounts. If you do, you’ll also have two payment deadlines. In the following years, you’ll usually only file one tax return.
There's a lot of paperwork involved in being a company director. You should obviously keep all your P45, P60 and P11D documents, but that's not all. Taxed award schemes, redundancy payments and a whole range of benefits all come with records to hold onto. You should also remember to keep track of any essential expenses you've had. You might be able to use them to bring down the tax you owe.
HMRC will expect you to tell them about any benefits you've received, whether that's Jobseeker's Allowance, Sick Pay or Statutory Maternity Pay. You should also record any income or other benefits you've had from things like employee share schemes. It's all part of the big-picture overview of your finances that the taxman wants to see.
A Limited Company has to file a few different kinds of paperwork to stay in business. One of the most obvious is your Company Tax Return. This is how your Corporation Tax is worked out, and mostly has to do with the profits or losses you made. One thing to keep in mind is that this is separate from your annual return or "confirmation statement". An annual statement is a yearly check that all the conformation Companies House holds about your company is correct.
Finally, you'll need to file your personal Self Assessment tax return as a director of the company. Self Assessment returns work out how much tax you owe personally, and again are separate from your company's return.
When you're in a partnership, you've got two Self Assessment registrations to make – one for you and one for the business itself. One of the partners has to be in charge of the business' tax records (the “nominated partner”). If that's you, it means you have to register the partnership for Self Assessment and deal with all its tax paperwork. Like a person, the partnership will get a Unique Taxpayer Reference number to use when filing its tax returns.
As a partner, you'll also have to register for the system yourself. Again, though, the basic rules and deadlines are the same. If your business is a Limited Liability Partnership, of if the “partner” you're registering is itself a company, then special rules apply.
When you let out a property, HMRC wants to hear about the money you're making. To declare what you've got coming in, you need to register for Self Assessment Tax Returns. Even if you don't think of yourself as being a self-employed landlord, the taxman will still come sniffing around your rental income.
Under the Self Assessment system, you fill in a form (usually online) to tell HMRC what money you've made. However, the taxman's only really interested in your profits. Because of that, you also show him what you've spent on renting the property out. These necessary costs bring down the amount of profit you're paying tax on.
Getting set up for Self Assessment can take a while, so it's best to do it early. You'll have to give some basic information, and hit strict deadlines for submitting returns and paying what you owe. It can be hectic, if you're not used to the system, but keeping good records and getting professional help make all the difference.
The way you pay tax on your rental income depends on how much you've got coming in. If it's between £2,500 and £9,999 a year after expenses, you'll need to file a Self Assessment tax return. You'll also need to file a return if you're making over £10,000 before expenses.
If you're below these limits, you probably won't need to register for Self Assessment, meaning you'll be taxed via PAYE instead. You'll need a P810 form from HMRC to declare the money you're making.
All your income is taxed at your normal rate, regardless of where it comes from. However, there are ways to bring down the amount of tax you owe. The government's Rent a Room scheme is a good example. Under this scheme, landlords letting out a furnished room in their own home can earn up to £7,500 per year tax-free. You don't need to do anything to claim this tax relief, other than opt into the scheme. However, you'll still need to file a Self Assessment return to pay tax on anything you make over the £7,500 threshold.
HMRC can sometimes collect your tax through your tax code if you're employed as well as self-employed. It depends on how much you owe and how much you earn through employment. If you want to do it this way, you'll need to get your paper tax return filed by the 31st of October. If you're filing online instead, you'll have until the end of December. Either way, you'll have to specifically tell HMRC that you want to do it.
As for what counts as “additional income”, it all depends on what you’re doing, how often you’re doing it and how much you’re making from it. Let's say you started out with a hobby - something in the arts-and-crafts field, for instance. You post pictures of a few of your creations on social media, and get a surprising number of positive comments. A couple of people ask if you'd consider making something for them (paying your costs, of course), and are delighted when you do.
They're so delighted, in fact, that they post pictures of your stuff on their own pages. Soon enough, people you don't even know are asking you to make things. By now, they're actually offering you some pretty decent cash for your work. Before you know it, you've got an Etsy shop and with regular orders. You're buying materials to pursue your hobby, and you're getting more than your costs back. The thing is, the taxman has a word for this kind of hobby. He calls it “running a business” - and he wants his cut of your profits.
HMRC don't care if you sell a few possessions online or make a few quid out of your hobby on Etsy. You can make up to £1,000 a year this way and he'll usually give you no grief over it. However, if you sell things regularly, or make enough doing it, he'll want you to do some paperwork. This is where the Self Assessment tax return system comes in.
So, is your hobby a “business”? This isn't as simple a question as it might seem. Here are a few things to consider:
If you're answering yes to any of these, then HMRC might decide that what you do counts as a business. It's not always so cut-and-dried, though.
As mentioned above, there's a particular wrinkle in the rules for people who sell stuff casually online. If your income from things like online sales comes to under £1,000, you can use the new “trading allowance” system. Basically, this just means that you don't need to declare the income. However, there are a couple of twists and turns to be aware of here:
Just as there's a difference between selling the occasional unwanted possession on eBay and running a retail business through it, there's a difference between running a blog or podcast and being a professional journalist. You may not know exactly when you've crossed that very blurred line, but you can be sure HMRC's going to have an opinion on the matter.
Success stories about people making money from sites like YouTube and Patreon are encouraging more and more people to dive into some of the murkiest waters in the UK tax law swamp. There are worse things than alligators down there. If you're careless with the rules, you could find yourself dragged down to the bottom by an investigation from the taxman.
Some internet sites allow you to post videos or other original content on them. That's fair enough. In some cases, you can let those sites slap some paid advertising around your videos and split the money with them. That's still great - but you have to understand how HMRC thinks. You may very well consider that advertising revenue to be a little extra pocket money, but the taxman will quickly start to call it taxable income - and that means he'll be expecting it to show up on a Self Assessment tax return.
If you're using something like Patreon, you're actually taking money directly from people, not just getting your cut from an advertising network, to supply them with whatever your content or product is. They might be paying monthly or only whenever you put something out, but you're still making an income from it. It doesn't matter if you don't think of it as your "job". The point is there's money coming in and that means you have to declare it to HMRC. If your income is already over the personal allowance threshold then they're going to want a bite of it.
A lot of people simply assume that no one's ever going to catch them, or bother chasing them. They may even be right, but "I didn't think I'd get caught" is a weak defence against an HMRC tax-dodging accusation and it won't get you out of any of the nasty penalties that will be stacking up if you miss the deadlines for not filing your Self Assessment.
Of course, if you've got income you've probably got expenses, too. Again, there are rules you've got to get to grips with. If you're a photographer, buying a camera might count as a business expense now, rather than just something you bought for yourself. Taking a photo of your house and then claiming for the bricks would be a bad move, though.
The bottom line is you have to think about what you're doing. More specifically, think about how it looks to HMRC. When in doubt, get professional advice. Technology is moving faster than the law in many online areas and you don't want to end up on the wrong side of it as a test case.
Depending on who you listen to, the new “gig economy” is either the pinnacle of self-employment freedom or a massive scam at the expense of workers and HMRC. Employment law and tax regulations have been tying themselves up in knots trying to keep pace with it. With potentially billions of pounds in the balance, it's not hard to see why. The way the UK works is changing rapidly, and the taxman's old tools are looking blunter every day.
In the gig economy, companies hire staff as independent contractors for what are usually short-term jobs. Those workers are paid by the “gig”, rather than on a regular schedule. On the one hand, it's a flexible way to work that suits a lot of people. On the other, you really don't have any guarantees to fall back on. Many gig economy workers end up putting in the equivalent of full-time hours. However, since they aren't employees, they get no job security and miss out on some important rights.
In the UK, employees of a business can generally expect sick pay, parental leave and a guaranteed minimum wage. These are all basic cornerstones of employment law. By treating everyone as an independent contractor, gig economy jobs tend to dodge all those fundamental rights. Given that we're talking about somewhere approaching 16% of the total UK workforce, that's a lot of people working without the security and safeguards that protect more traditional workers.
When you work from gig to gig, you're responsible for paying your own tax and National Insurance. That means registering for HMRC's Self Assessment system and filing yearly tax returns. There's been a lot of fuss kicked up by the taxman over the gig economy in recent years. Basically, HMRC believes that there's significant “bogus self-employment” going on in the UK. Billions of pounds' worth, in fact - and they're cracking down hard to put a stop to it. False self employment essentially means that a company is avoiding its responsibilities to its workforce and HMRC by declaring employees to be contractors. This can be a pretty complicated legal knot to untangle, particularly with agencies, umbrella companies and Personal Service Companies to consider.
The legislation is badly out of date when it comes to dealing with the gig economy, and HMRC employment status challenges can be a nightmare for everyone. There are new rules apparently on the way to shift the balance more in favour of workers and generally tidy up the system. For now, though, the taxman's definitely paying attention.
If you’re making over £100,000 a year, you have to file an annual Self Assessment tax return with HMRC. If you don’t usually send a tax return, you need to register by 5th October following the tax year you had the income. We can help you avoid any tax return penalties and handle everything for you.
Basically, when you're a "high earner", HMRC wants to take a closer look at your money. You may well be in a more complex position than most, with more than one source of income to consider. Getting it all properly accounted for means filing a yearly Self Assessment tax return.
Another reason the taxman will ask high earners for a tax return is because it can affect your tax-free Personal Allowance. It comes down what HMRC calls to your "adjusted net income". This figure doesn't take your Personal Allowance into account, but does include a few kinds of tax relief. The basic idea is that you lose £1 of your tax-free Personal Allowance for every £2 over £100,000 your adjusted net income goes. This can get complicated quickly, of course - which is why HMRC needs a tax return to sort it all out.
When you dispose of (usually meaning sell) certain things you own, you might get charged "capital gains" tax. Basically, it's a tax on the profit you make when you sell it - not its actual value. When you sell something that counts for capital gains tax, you file a Self Assessment tax return to declare the profit.
You generally don't need to worry about selling your personal possessions, unless they're worth £6,000 or more. We're mostly talking about things like jewellery, antiques, valuable artworks and so on here. If you sell something like that for £6,000 or over, you need to work out what profit you made on the sale. Property is obviously big capital gains area. This doesn't usually include your main home, unless you use it for business or let it out. You'll also need to tell the taxman about things like sales or shares and business assets.
ISAs, PEPs and things like Premium Bonds and lottery wins are exempt. Also, if you inherit something, you'll probably only have to worry about capital gains tax if you sell it later. If you don't use your car for business, selling that won't count either.
Another odd exemption is for items with a lifespan of under 50 years - although again, that changes if it's something used for business. Of course, your tax-free Personal Allowance still counts, so if your profits stay under that, you don't have to pay anything.
For every asset you're disposing of, add up the profit you've made on it. If you've actually made a loss on some of them, include that in your calculations. Those losses count against your “total taxable gains”, bringing your tax bill down. In fact, you can even claim losses on things you still own, if they've become essentially worthless for some reason. You can make claims against losses for up to 4 years. However, there are strict rules about what qualifies as a loss. HMRC won't usually let you claim losses when you give or sell something to a family member or “connected person”, for instance.
You don't normally have to pay capital gains tax on gifts to your spouse or to a charity. Other than that, though, swapping or giving things away still counts as "disposing" of them. Also, getting "compensation" for something, like an insurance claim if it's destroyed, still counts.
Capital gains tax can still apply if your assets are overseas. If you're abroad yourself, you'll pay tax on gains from residential property in the UK, even if you're “non-domiciled” for tax purposes. You'll probably be off the hook for capital gains tax on other kinds of UK assets though, as long as you're not returning to the UK for over 5 years.
There are a couple of situations where you'll still get stung for Capital Gains Tax when dealing with spouses or civil partners. If you're giving them goods to sell on in their own business, for instance, capitals gains rules apply. Also, if you've been separated and didn't live together for that entire tax year, you'll still have to pay the tax. Either way, if your partner then disposes of the asset, they'll have to pay tax on it. Generally, that'll be based on its value when they got it from you.
HMRC does have a “real time” Capital Gains Tax service you can use at any time. It's only worth doing this if you don't already have to send in a tax return, though. If you're using Self Assessment at all, you'll have to report the gains again in your return anyway.
If you've got money coming in from abroad, you'll usually have to pay UK tax on it. You'll generally do this by filing a Self Assessment tax return. There are rules on the types of income that count, and a lot depends on your status as a UK resident.
Your foreign income might include wages from working abroad, or things like overseas rental money or foreign investments and savings. In most cases, your foreign income will be taxed in the same way as your UK money. However, there are special rules for pensions, property rental and jobs like working on a ship or for the government.
You generally only pay UK tax on foreign income if HMRC considers you a UK resident. That basically means you either:
If your residence status changes during the tax year, you might be able to get "split-year treatment". This means you'll only pay tax on the money you made as a UK resident. There are a few conditions to meet, though. If you come back after living abroad for under a tax year, you won't get split-year treatment.
Confusing as it sounds, it's possible to be a UK resident whose permanent home is abroad. This is called being "non-domiciled." Non-domiciled UK residents with under £2,000 of foreign income won't pay UK tax on it if they keep it abroad.
If you're living or working abroad, you may still have to pay UK tax on some or all of your income. It all depends on where the money's coming from and what your tax residence status is. This can be a tricky issue, so it's definitely worth getting professional advice about it.
Even expats living permanently overseas sometimes find themselves in HMRC's sights. For example, you might have to pay UK tax if:
Tax is such a huge topic that it makes a lot of sense to get your advice from someone who specialises in your precise situation. A general handyman might be able to take a fair crack at any jobs that need doing around your house – but when your wiring’s sparking you immediately call a specialist electrician. The same principle applies to tax advisers. Just looking through the list of common tax issues people face, you can already see how much ground there is to cover. Add to that the fact that the tax rules in each area can change on a yearly basis and you’ll get an idea of what a nightmare it could be trying to stay on top of everything at once. Sticking to a specialist for your particular problem will go a long way toward making sure you’re getting tailored, practical and up-to-date advice.
Writing a will can be complicated and time consuming. That said, unless something very weird happens, dividing up your property after your death is something you'll probably only have the chance to do once. That means it's worth getting it right. There are a few basic steps to follow to make your will.
Obviously enough, you'll need to know what you're leaving behind you in order to divide it all up. Your list should include things like any properties you own, any savings and investments you have, your household contents and any other valuables. Remember that any unpaid debts you've run up will count against the value of your estate, so factor in things like loans, outstanding credit card balances and overdrafts. Usually, this sort of overall valuation is something you'll want to get done professionally.
Depending on your circumstances, this might be the easiest or hardest part of the job. In addition to family members and other typical beneficiaries, now's the time to make up your mind about leaving something to charities or other organisations. Remember that there may be funeral bills to pay as well, along with the various administration fees and tax.
This is less sinister than it sounds. An executor is simply someone who'll deal with all the admin of making sure your estate actually gets to the people you want it to. It can be a big job, so make sure you choose someone who can handle it and doesn't mind the work.
You've got a few options as to how you go about this. Talking to a lawyer's usually a smart decision, as long as they're properly registered with a recognised authority like the Law Society. Some banks and charities have services to help put your will together, too. Where are even specialist will writers, although you should check that they're members of the Institute of Professional Willwriters before going with them. As a last resort, you could have a crack at writing your will yourself—but we'll go over why that might not be such a brilliant idea a bit further down.
There are a few legal hoops to jump through to make sure your will's bullet-proof and watertight. It has to be in writing, for one thing. A spoken will doesn't carry a lot of weight, for instance. It also needs to be signed by you and witnessed by two other people to be valid. These witnesses really do have to be there when you sign the will, too. You can't just post someone a copy to sign later, for instance. Finally, while this might seem obvious enough, you need to be writing your will voluntarily, and while you have the 'mental capacity' to understand the effect it'll have on you, your possessions and your beneficiaries. Basically, no one can force or pressure you to sign a will you don't agree with, and it won't be valid if you didn't know exactly what you were doing when you signed it.
In the UK, most of us would rather die before talking with our friends or loved ones about money—and a lot of us end up doing just that. There are 31 million people in the country who don't have wills at all. That figure includes 85% of all people under 35. Even those who've done their homework haven't necessarily finished the job, though. Wills aren't set in stone the moment they're signed. You've got to keep them updated as your circumstances change over the years—something that 60% of us haven't bothered with.
Overall, there are 5.4 million adults in the UK who don't even know how to get started writing their wills. Even so, as a nation of DIY fanatics and have-a-go heroes, it's probably no surprise that so many of us decide to try writing them anyway. In fact, about 7 in 10 of us say we'd be prepared to give it a go if it meant bringing down the costs. The trouble is, that last statistic alone is the cause of many of the problems people run into, seeing them ending up on the phone to a professional after all to fix the problems.
It's tough to overstate how important it is to get the details right when you're writing a will, and not everyone realises what they're letting themselves in for when they go the DIY route to save some cash. Technically, a home-made – or even handwritten – will has some legal weight behind it. However, simply listing out what you’ve got and who’ll get it won’t help much when people start squabbling over the details. DIY wills are often vague, ambiguous or simply out of date. You can’t leave your home to your child if you’ve already sold it, for instance. Did you intend to leave your new house to them instead? Tricky things like that can quickly become a legal nightmare.
Then there's your funeral to think about, which a lot of people understandably forget. After all, who wants to waste time and money arranging a party they're not invited to? Lumping funeral costs onto grieving relatives is probably something to avoid, so a well written will usually contains provisions for that.
What if you die while your kids are still kids? This is probably the single most important decision you'll have to make—but again, it's something DIY willwriters often miss out. The last thing you'll want is to lose your say in how your children are looked after by forgetting to include those details in your will paperwork.
When your estate gets divided up after your death, it'll count as taxable income in HMRC's eyes for the people it goes to. This is one of the reasons why it's so important to keep your will up to date. The threshold for paying Inheritance Tax is pretty high, but it's always a smart move to understand the full value of what you're passing on and adjusting your will as needed.
The standard rate for Inheritance Tax is 40%, but your beneficiaries won’t automatically have to pay it from the first penny they inherit. In fact, the tax doesn’t kick in at all unless the total value of the estate's at least £325,000 – and even then, it only applies to the portion of it that’s above that £325,000 threshold.
If you're married or in a civil partnership, leaving everything above the £325,000 threshold to your spouse or partner will mean there's no Inheritance Tax to pay. The same goes for anything you leave to charities or, weirdly, community amateur sports clubs.
A lot of people try to bring down the amount of Inheritance Tax their beneficiaries will have to pay by giving out their possessions as gifts while still among the living. That's actually not a bad move, but the taxman's pretty wise to this sort of thing, so it may not pay off as well as you'd hoped. The people you're giving your gifts to might still end up paying some Inheritance Tax on them if the possessions were given out in the 7 years before you ended up dying, for instance. The deciding factors include:
As for what counts as a gift, the definitions are actually pretty broad. Depending on your estate, your gifts might include:
You can read more about how Inheritance Tax works in our other guide, "The Difference between Inheritance Tax and Capital Gains Tax". In the meantime, keep checking back here for more money tips and updates. We’re experts at saving you cash and we’re always here to help. That’s the reason why you’re better off with RIFT.
Speaking of testimonials, ask around your mates and family to see if they’ve had any experience of getting repair work done. If you get lucky, you might even find that you get a discount by picking your tradespeople from referrals or recommendations. If nothing else, reports from happy customers are still worth their weight in gold – doubly so when the recommendations come from a trusted source. Once the work’s all done, you’ll be much more likely to be happy with the quality and cost.
What most people never realise is that, when you’re paid through PAYE, there are loads of everyday expenses that can earn you a tax rebate each year. With detailed records of your out-of-pocket costs for things like essential travel to temporary workplaces and upkeep of tools or equipment, you could claw back thousands of pounds from HMRC. You can make a claim online or on paper, but you’ll be expected to back up everything you’re claiming for with solid evidence. Again, talking to a tax professional can be a lot safer and more effective than going it alone.
That’s about it for our quick wrap-up of HMRC’s various refund systems. The key thing to remember is that HMRC really isn’t out to get you. All the taxman actually wants is the tax he’s owed and not one penny more. He’ll never try to cheat you - but he expects the same from you in return. As long as your claim has a solid leg to stand on, you’ll get back what you’re owed. There really is no reason to leave your refund cash in the taxman’s pocket, so do your homework, get your records organised and don’t be afraid to call in the pros for help.
Offshore work comes with a stack of extra tax and National Insurance rules to follow. These can be pretty complicated and hard to navigate if you’re not an expert, which is why so many oil and gas workers go looking for specialised advice. A lot of the rules centre around whether you’re working in UK waters or for a UK company. Also, it makes a difference whether you’re a UK national or not. Again, though, areas like this can be easy to tangle yourself up in.
Your uniform tax rebate depends on the work you do and the tax band you're in. As a basic rule, HMRC estimates that it costs most people £60 per year to maintain their work clothes. At the basic rate of tax, that means you're entitled to £12 (20% of £60) back from HMRC.
That's not where the story ends, though. Higher rate taxpayers get their 40% tax back (£24), while different industries sometimes have different allowances. The list of jobs with their own rules is pretty huge, but tends to focus on industries with particular clothing requirements. Fire services, the NHS, certain engineering and construction jobs and many others have allowances higher than £60. You can find the full, up-to-date list here.
An important thing to keep in mind is that the government’s figures won’t necessarily match what you’re actually spending each year. If your costs are higher than their estimates, then you’ll need to show some proof (receipts, etc.) to get back the full amount you’re owed.
While these kind of websites can be helpful for tracking down the right deal for you, it pays to be a little bit wary before taking them at face value. Price comparison sites don’t charge you for using them, meaning they get the money they need to keep running from somewhere else. When a supplier signs up to a comparison site, they offer a commission to the site when they “generate leads” for the business – basically, when they attract customers for them. As a result, the sites really want you to keep coming back to them, meaning they have to keep finding you better and better deals.
Every time you visit a comparison site, the odds are you’ll find a better deal than the one you're on, whether you’re after a cheaper insurance quote or a less steep interest rate on a credit card. In fact, they’re so good at saving us money that we don’t ask nearly as many questions as we ought to. We just tend to assume that the sites are acting in an “unbiased” way, always keeping our best interests at heart. But, that’s really not quite true. Just like any other business, a price comparison site’s in it for the cash it can make, building up its profits and keeping its shareholders happy. Does that necessarily make them bad? Not at all! In fact, Moneysupermarket and GoCompare alone saved their users well over £3 billion last year. At the same time, though, they scored about £127 million in profits before tax, pouring £100 million of that directly into their shareholders’ pockets.
Watch our video: 8 ways to save cash
But they’re still “impartial”, right? Well, maybe – but it’s worth remembering that they’ve got more interests to consider than just yours. Admiral, for example, is a co-owner of Confused.com – meaning they’re selling their own insurance through a comparison site they’re partly running. None of that automatically means they’re giving bad advice, of course, but you wouldn’t necessarily know there was a link when you were mulling over your options.
The big change that price comparison sites have made to the way we buy things like insurance and energy is in the holes they poke in the idea of “consumer loyalty”. The way things used to be, an insurer or energy supplier could more or less assume that its customers would stick with them year after year, even if they kept pumping up their prices. Now, though, the news of a good deal elsewhere travels fast, and customers will jump ship a lot more readily than they used to. The same goes for things like banks – and honestly, it’s not a bad thing. Easier access to information about other suppliers makes competition a lot more effective, and can easily lead to real benefits for buyers. The problem is, those benefits really only ever materialise if you keep checking out the alternatives year on year. That deal you were so excited about 5 years back might have lost a lot of its shine by now, lagging behind today’s competition and ramping up the costs over time.
Suppliers, meanwhile, are falling over themselves to bring their prices down so they look good on comparison sites – even offering deals at a loss to make sure they stand out from the crowd. Once you’re sucked in by that great initial offer, though, there’s every chance you’ll get “price-walked” into a much more expensive rate over a few years. There are some rules designed to prevent price-walking for vehicle and home insurers by making sure existing customers can’t be charged more than new ones. Of course, the knock-on effect of that is that insurers are becoming much less excited about offering cheaper “first-timer” deals.
Like a strange rattle in your engine or an unexpected skin rash, if something looks iffy in your P45 it's always best to get it checked out. In most cases, a quick call to whoever deals with GR at work will clear things up. If that doesn't get you anywhere, you can talk to HMRC directly or have a tax expert look it over for you.
This cost does vary by region, however, the difference is marginal.
For example, in London it will cost you the most, coming in at a total of £1.39 in energy costs for the whole month of December, with North Wales and the Mersey (£1.38), the South East (£1.38) and Eastern (£1.37) regions also amongst the most expensive based on current electricity prices.
Yorkshire the Northern region are home to the lowest bills, where Christmas light costs total just £1.30 for the entire month of December.
To put the cost of Christmas lights into perspective, it would cost you £2.03 in electricity for the month of December if you were to leave your TV on standby, while leaving a games console on standby will also cost you the same on your energy bill.
The law says your employer must give you a P45 once you leave your job, no matter why you're leaving it. Contact them (or their Human Resources department if they have one) if they don't send you your form. In the last resort, you can get in touch with HMRC to chase them up for you.
If there's a delay and you need to start a new job before your P45 arrives from your old one, you could use a starter checklist instead. At least that way, you shouldn't run into too many problems with your tax code.
Every penny of your income has to go somewhere, right? So let’s work out where. We’ll start with calculating exactly how much money we’re playing with. If you’re used to claiming tax refunds (and you really should be), this is basic stuff for you. If not, it’s easy to pick up. Simply add up all the cash you’ve got coming in, wherever it’s coming from. That’s step 1 done already!
Again, if you’re an old hand with tax refunds you’re on solid ground here. Start with the stuff you really can’t change, like your rent or mortgage payments. Once those are accounted for, look at the expenses you can control more easily. You don’t have to make any major life decisions just yet. Just track what you’re spending for now and we’ll worry about tweaking it later.
Here’s the real trick to zero-based budgeting. With any luck, there’s still some cash unaccounted for in your calculations. We’re talking about the money you’re saving, investing – or even just giving away. Every penny goes somewhere, even if you’re keeping it. List all that stuff here for a full picture of your finances.
23rd October 2024
CIS deductions explained
The Construction Industry Scheme (CIS) is a set of rules put in place by HMRC for those working in the construction i...
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