Claiming tax back as an assistant - is this possible?

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Thu, 13 Jan 2011 15:15:52 GMT

I am PAYE and did what the last few people did and wrote a letter every year - I was asked to submit my tax return last year and it was very easy when I could find my receipts and statements - I shall be doing it again this year :)

Re: Claiming tax back as an assistant - is this possible?

Charlotte Marshall — Thu, 13 Jan 2011 15:09:46 GMT

I am also PAYE and claim back subs. I also claim back something for textbooks each year. Every so often they send me a form to confirm I am still paying the subs and buying the books. I just send them a photocopy of the book receipts and subs forms. Nice and easy.

Re: Claiming tax back as an assistant - is this possible?

Mark Frost — Wed, 12 Jan 2011 21:32:01 GMT

I am PAYE and claim back tax on RCVS, BSAVA, BVA & SPVS subs, no forms required, just wrote a letter to local tax office with amounts & receipts etc... in subsequent years I have just written a letter with the new amounts for the tax year and my tax free allowance and hence tax code have been altered, I recieved a cheque for the 2 years back I claimed at the start (only had two years back to when I graduated at the time.)

Re: Claiming tax back as an assistant - is this possible?

mothpop — Wed, 12 Jan 2011 17:46:03 GMT

Thank you, everyone, for your really helpful replies

I am seriously tax ignorant and have always relied upon my employer's accountants along with HMRC to get it right - I wouldn't even know where to start in order to check that my tax code was correct. Time to learn all about it!

I feel slightly fatalistic about the whole thing - if I have underpaid tax I am sure it is going to catch up with me at some point in time. I think I would rather find out now than later!

Marie, what is the benefit of becoming a sole trader for your expenses rather than using the P87 form?

Re: Claiming tax back as an assistant - is this possible?

Bob Russell — Wed, 12 Jan 2011 15:01:33 GMT

If you are on PAYE an accountant may be an expensive luxury. See if your employer will speak to theirs. It may be possible to get an answer for nothing!

Re: Claiming tax back as an assistant - is this possible?

fluffygirl — Wed, 12 Jan 2011 14:54:56 GMT

Get an accountant. If you are as clueless as I am when it comes to tax, they are worth every penny!

Re: Claiming tax back as an assistant - is this possible?

Marie Kubiak — Wed, 12 Jan 2011 14:05:27 GMT

I ended up setting up as a sole trader to put as much of my costs through pre-tax earnings (CPD/research costs/equipment). It's fairly simple to do on the HMRC website (although I was lucky enough to have married an accountant who sorted it all and prepared all kinds of colour coded spreadsheets that sorts out all my book keeping without me doing anything!)

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 12:56:45 GMT

Yup - I'd be sure you are hopefully on the positive side before sending in the claim - i.e. have declared everything you can think of :)

Re: Claiming tax back as an assistant - is this possible?

Alan Tevendale — Wed, 12 Jan 2011 12:37:55 GMT

You make a good point there Lisa. One of our assistants was stung a couple of years back when HMRC made a mistake on his tax codes from a previous year. Of course he then owed them a large sum of money. Combine this with a young family and new home - I'm sure this was a tight year for him.

The lesson we all should learn from this is that it is our own responsibility to ensure that we are paying the correct amount of tax. Whether that be too little or too much.

Re: Claiming tax back as an assistant - is this possible?

listhestar — Wed, 12 Jan 2011 12:33:02 GMT

[quote user="mothpop"]I have just found form P87 'Tax relief for expenses of employment' on the HMRC website [/quote]

That's what I used for the subs claim back. Just be aware with the tax issues that it can go both ways. I claimed back expenses for 2 years. I got a rebate through my tax code for one year but heard nothing for the other year. When I rung them it turns I still owed some tax from previous (it was in the news a while ago that people hadn't been on the right codes etc so were still owing tax) and so the amounts cancelled out. If I hadn't of asked for a rebate they would not have known as past the time they can ask for it. That said worth doing and at least I am now straight with Mr Tax man!!

Lisa

Re: Claiming tax back as an assistant - is this possible?

Bob Russell — Wed, 12 Jan 2011 12:08:56 GMT

As long as the things you are claiming for are sensible (and I would include all relevant CPD and courses whether 'officially' recognised or not) claim for it anyway. They are unlikely to argue (or even notice) and as long as it is work related you can argue back!

The worst case scenario is you will pay it back (with a relatively low interest added). It is extremely unlikely that you would have penalties added unless the claim is completely unreasonable. I cannot see why any veterinary certificate course should be excluded. It is a genuine expense relating to work and is clearly on-going training which should qualify for tax relief.

I agree that talking to the tax man is unlikely to be of much use. The staff at the call-centres are overworked and demoralised to the point of no-longer caring.

Re: Claiming tax back as an assistant - is this possible?

Alan Tevendale — Wed, 12 Jan 2011 11:40:53 GMT

This is why I suggested seeking professional advice on gaining the most from your tax relief in the first year you do it. Might cost a little in that first year but if it makes a difference then future years should easily pay it back.

On the point of paying tax back on certs etc - CPD is compulsary under PSS or recommended otherwise, could you not get a letter from your employer stating as such. In my mind that is good evidence of it's necessity. HMRC might disagree.

Re: Claiming tax back as an assistant - is this possible?

Mark Holmes — Wed, 12 Jan 2011 10:54:43 GMT

Don't go to HMRC for tax advice. They don't divulge information unless specifically pushed for it if it is in your favour, but suprisingly enough they are very forthcoming when it is in theirs.

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 10:37:15 GMT

Erm - hmm - I found it out on doing my tax return - I'll try and find the PDF :) Specific to Vets there is nothing :(

Try Here: http://www.hmrc.gov.uk/incometax/relief-subs.htm

Re: Claiming tax back as an assistant - is this possible?

mothpop — Wed, 12 Jan 2011 10:21:35 GMT

I have just found form P87 'Tax relief for expenses of employment' on the HMRC website which seems to be for such matters, especially section 4. It's very short so it would be worth everyone claiming when possible!

I have tried to find a list of recognised expenses on the HMRC website to see if the certificate modules are likely to be covered by this. Short of ringing HMRC and speaking to another clueless individual about the matter is there any other way of finding out this information?

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 10:16:02 GMT

Nope - is on the employee which is the wrong way round - they probably make a killing I expect on overpaid tax enough to pay for all the people who don't pay!

Re: Claiming tax back as an assistant - is this possible?

James Kerr — Wed, 12 Jan 2011 10:02:36 GMT

Amazing, to think the amount of money you can lose through ignorance. I'll give it a go. Our friends at HMRC don't go out of their way to point out ones entitlements do they?

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 10:01:24 GMT

Also print off the RCVS fees list on their website if you need to reclaim the tax off these?

http://www.rcvs.org.uk/Templates/Internal.asp?NodeID=90741&int2ndParentNodeID=90638&int1stParentNodeID=89635

Re: Claiming tax back as an assistant - is this possible?

Mark Hedberg — Wed, 12 Jan 2011 09:50:46 GMT

I have bank statements for the payments in question; i think that should do it.

Re: Claiming tax back as an assistant - is this possible?

Alan Tevendale — Wed, 12 Jan 2011 09:48:11 GMT

But remember that you do still need to be able to prove those expenses - I used to be terrible at keeping the appropriate paperwork.

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 09:45:19 GMT

You can - up to 5 years IIRC :)

Re: Claiming tax back as an assistant - is this possible?

Mark Hedberg — Wed, 12 Jan 2011 09:43:34 GMT

Can you do this retroactively?

Re: Claiming tax back as an assistant - is this possible?

Alan Tevendale — Wed, 12 Jan 2011 09:35:04 GMT

I couldn't agree more. I became a partner at my practice last year and since then got a good accountant. It's amazing the difference that this is making in what I am now going to be claiming back in tax. Most of which I would have been entitled to claim whilst an assistant as well. Gutting to think of all the money the tax man was keeping.

There is nothing stopping you to getting someone to look through all your expenses one year - helping you realise what you can achieve. From there on even if your not good with figures then it's really not that difficult.

Re: Claiming tax back as an assistant - is this possible?

Richard Fox — Wed, 12 Jan 2011 09:09:07 GMT

Oh god yes - I claim back my journals, subs (if they are on their list) and RCVS fees - if you are on a higher tax bracket that's 40% back on those! I can't claim back my DipECVP fees as those are no recognised You can also claim back books IIRC. However I did my own tax return this year and got £480 back off the tax man I will do the same next year

Re: Claiming tax back as an assistant - is this possible?

James Kerr — Wed, 12 Jan 2011 09:07:12 GMT

It's a good point. I wonder how many other things there are that tax could be claimed back on, that no-one ever bothers/knows to do. RCVS/BVA membership? Would it yield enough cash to make the hassle worthwhile?