Travel Expenses – How Much Can I Claim?

Posted on May 17, 2013 by T Shanks

Travel Expenses Tax Relief

If you have travel expenses because of your job, a claim for tax relief for the last four tax years can be made. The way in which you make a claim depends on the form of transport you use.

How Much Can I Claim?

How much tax rebate you can claim for travel expenses depends on how much, if anything, you are paid by your employer and whether any reimbursement is taxed or not.

If you are not reimbursed anything by your employer you can reclaim tax relief on all allowable travel expenses.

Using Your Own Vehicle…

If you are paid a mileage allowance by your employer but it is taxed, you should be able to claim the full business mileage allowance. If you are paid untaxed business mileage by your employer but it does not reach the allowed rates as set by HMRC, the difference between the allowable business mileage rates, and the figure paid to you by your employer, can be claimed.

Currently the business mileage allowance rate set by HMRC for use of your own vehicle is 45p per mile for the first 10000 business miles and 25p thereafter. If a travel expenses claim is successful you will receive tax relief at either 20% or 40% of the travel expenses figure, depending on which tax bracket you fall into.

Using Public Transport

If you use public transport and you are paid a travel allowance which is taxed a claim for the full cost of your travel is possible.

If you are paid a travel allowance which is not taxed tax relief can be claimed on the difference between what you are paid and what you have spent.

How Do I Make A Claim?

Tax Rebate Service specialises in helping people like you claim tax relief on their travel costs. Travel expenses claims can be complicated, which is why we offer a professional and hassle free travel expenses service. Please call today to make a claim on 0845 094 0005 or 01228 520477.

Travel Expenses Under PAYE

Posted on May 16, 2013 by T Shanks

PAYE Travel Expenses – Travel Expense Limits …

PAYE travel expense claims can become confusing, and knowing what type of tax relief is available is important before making a tax rebate claim.

How Much Can I Claim?

There are rules set by HMRC as to what you can claim tax relief on when paying for business travel, subsistence and accommodation. The tax office do not however state how much you can claim, there is no upper limit for a claim on tax relief of this type – as long as full receipts or records are provided. HMRC guidelines state that they will challenge the value of claims “only in extreme cases”. You are eligible to claim tax relief on first class travel.

Am I Eligible?

Tax relief can only be claimed, however, when the main or sole purpose of the expenditure is work-related. In most cases you can only claim for your own personal expenses, which means that you cannot usually claim full tax relief on the costs of a family room or large house. Also, If you are claiming tax relief for accommodation, the location must be appropriate. For example, you will not usually be able to claim for accommodation more than one hour’s travel away from your temporary workplace if there is suitable accommodation nearby.

Tax Rebate Services can help you make a claim for mileage tax relief and subsistence and accommodation costs. A claim can be made for the last four tax years. Call today to see how we can help you on 0845 094 0005 or 01228 520477.

Working From Home Tax Relief

Posted on May 14, 2013 by T Shanks

Can You Claim Tax Relief Working From Home?

Employees who are contracted to work from home can often claim tax relief on certain household expenses. You can make a working at home tax relief claim for the last four tax years meaning you could be owed £000′s back in tax relief.

What does working from home tax relief cover?

If you have to work at or from home, you can get tax relief for the extra household expenses that you have to pay because of your job. Typically these extra expenses include:

the added cost of gas and electricity
work related telephone calls

Work from home tax relief is not applicable on expenses that you would be paying anyway, for example your mortgage. Neither can tax relief working from home cover any expenses that relate to both business and private use, such as your broadband or telephone line rental.

How much work from home tax relief can you get?

From 2012-13 onwards, working from home tax relief claims can be made, without any records or proof of the household expenses you are claiming for, for up to £4.00 per week, or £18 per month for monthly paid employees.

Any working at home tax relief you wish to claim that will exceed payments of £4.00 per week will need supporting evidence provided along with the claim.

For those who wish to backdate claims, the guideline rate for tax years 2009-2010 to 2011-12 was £3.00 per week.

Can you make a working from home tax relief claim if you volunteer to work at home?

Some employees volunteer to work at home under a ‘homeworking arrangement’. A homeworking arrangement is an agreement with your employer that you’ll work at home on a regular basis. If this is the case for you, you may still be eligible to claim tax relief working from home.

For working at home tax relief to be applicable in these cases, you don’t have to work at home every day, but there must be a recognisable pattern – for example two days at home and three days in the office each week. The work you do at home must be work that you are required to do as part of your employment. To claim work from home tax back in this situation your employer will typically have to contribute towards your expenses.

How to claim working at home tax relief

Tax Rebate Services can help you make a working from home tax relief claim. Using our expertise we can make sure you get back all you are entitled to for the last four tax years, in the quickest possible time. We can also highlight other reasons why you could be due a tax rebate. Call today to speak to an expert on 0845 094 0005 or 01228 520477.

Tax Relief For Mileage

Posted on May 10, 2013 by T Shanks

What You Need To Know About Tax Relief For Mileage

If you use your own vehicle for work, other than for normal commuting, it is likely you are entitled to claim tax relief on your business mileage. The following guide will explain if, how and what you can claim.

What Is Tax Relief For Mileage?

Tax relief can be claimed on any business mileage. This relief is known as ‘mileage allowance relief’ and can be claimed for the miles travelled in your own vehicle whilst carrying out your work duties.
Only certain types of mileage are eligible for mileage allowance relief. Relief is only applicable to business mileage. The definition of business mileage is ‘mileage you travel when doing your job’. It does not include private travel or travel between home and your permanent place of work.
Tax relief is not only available for car travel. Whether you use a car, van, motorcycle or cycle, if you incur business mileage, you can claim tax relief.

How Do You Make A Claim For Mileage Tax Relief?

Work out your business mileage. It is useful to keep records of dates and mileage travelled for work. These will be helpful when making a claim.
Use the ‘approved mileage rates’ published by HMRC. Currently these are as follows;
- Car/van- 45p/mile first 10,000 miles then 25p/mile thereafter
- Motorcycle- 24p/mile
- Bicycle- 20p/mile
Multiplying your business miles by the approved mileage rate will then give you your total approved amount that you can claim.
Check if you have already been paid any expenses- some employers will pay you for mileage incurred at work. However if you aren’t paid the HMRC’s full approved amount you can still claim the difference.

Tax Rebate Services

Tax Rebate Services can help you make a claim for mileage tax relief. It is important to know what you can claim for, and only claim back what you are entitled to. Mileage claims can be difficult and time consuming. We can help you by making the process easy and hassle free.

Call today on 0845 094 0005 or 01228 520477 we will be happy to help you further.

Best Wishes
Tony Shanks

Nurse Tax Rebates

Posted on May 8, 2013 by PaulD

Nurse Tax Rebates

As a nurse it is likely that as part of your profession you will pay for your own registration into the NMC and membership into one or more professional bodies. Normally you will not be refunded by your employer for the cost of your membership fees. If this is the case you can claim back Nurse tax relief on some or all of the annual cost. You can make a claim for a nurse tax rebate for the last four tax years.

What Professional Bodies Can I Claim For?

Most but not all professional bodies have an agreement in place allowing tax relief to be claimed back. Some but not all of the following:

NMC – Nursing Midwifery Council
RCN – Royal College of Nursing
RCM – Royal College of Midwives
UNISON
HCPC – Health and Care Professionals Council

What Else Can I Claim For?

As a nurse you will usually have other job related expenses which tax relief can be claimed on. Some common expenses include:

Washing of uniform
Shoes and tights
Specialist clothing
Using your own car to travel to different work places

How Can I Claim A Nurse Tax Rebate?

Tax Rebate Services specialises in helping Nurses and healthcare workers claim back tax relief on their job related expenses. We can help you find out what you can claim for, and then claim back what you are entitled to.

50% Tax Rate Reduced to 45%

Posted on May 6, 2013 by PaulD

50% Tax Rate Reduced to 45%

Despite anticipation that the 50% tax rate was to be abolished, it has been announced that it will not be removed but will be replaced by a 45% rate instead. The change will take place in the 2013/14 tax year.

The 50% tax rate is currently the top rate of income tax paid and is applicable to individuals with an annual income of over £150,000. This top rate is now to be cut to 45%. In line with this drop, the top dividend tax rate will also be reduced- from 42.5% to 37.5%. Trust rates are also expected to mirror the changes.

Any individuals with income over £150,000 per annum will be affected by these cuts.

The new rate became effective on 6 April 2013 therefore will be applicable on income falling into the 2013/14 tax year.

Those who will be affected by the changes can take action now to benefit themselves further. Since it is known that a rate reduction is coming, wherever possible top rate tax payers can defer income (for example, dividends and bonuses) into 2013/14 to enable them to benefit from the reduced rates that will be in action then.

40% Tax

Posted on May 3, 2013 by PaulD

400,000 extra people now pay 40% tax

After this years Budget, one in six taxpayers will now pay tax at the higher rate of 40%. This is an increase of approximately 400,000 tax payers and takes the rise in people moving into the higher rate tax bracket to nearly 1.5 million since George Osborne became chancellor.

The 40% tax band was introduced twenty five years ago by Conservative chancellor Nigel Lawson. At the time only 5 % of people fell into this tax bracket. Today it is closer to 20%. It is estimated that, unless Osborne reverses his decisions he set out in the autumn statement, the total number of people classed as higher rate taxpayers will reach a record of 4.3 million in the 2013/14 tax year.

HMRC figures show that in the 2010/11 tax year, when George Osborne became chancellor, 3.02 million people paid tax at the 40% rate. The figure rose to 3.86 million in the 2012/13 tax year and this April, when the starting point for paying 40% tax was reduced, the number exceeded 4 million. Economists call the phenomenon behind these rises “fiscal drag”. This term applies when thresholds for paying tax fail to keep pace with growing earnings. In 1991/92, 24.1 million people paid basic rate tax and 1.6 million paid higher rate, but in 2012/13, 25 million paid basic rate tax and 3.86 million paid higher rate.

The government have stated that by criticising them for the rise in people falling into the 40% tax band, people are ignoring the more generous personal allowances that have been introduced, which mean that more of the average worker’s pay is tax-free. From April, the personal allowance rose from £8,105 to £9,440.

Teacher Tax Rebates

Posted on April 29, 2013 by PaulD

Teacher Tax Rebates

As a teacher you will probably pay membership into a professional body or teaching union. In most circumstances tax relief can be claimed on the membership fee you pay. You can make a claim for a teacher tax rebate for the last four tax years meaning you could receive a backdated tax rebate.

Which professional bodies can I claim tax relief on?

A teacher tax rebate can be claimed on many but not all professional bodies and unions. Most of the main bodies and unions have agreements in place with HMRC, allowing tax relief on part or all of the membership fee. For example a teacher can claim tax relief on 66% of their annual membership fee.

National Union of Teachers – NUT
General Teaching Council – GTC
National Association of Schoolmasters Union of Women Teachers - NASUWT
Association of Teachers and Lecturers – ATL
University College Union – UCU
Educational Institute of Scotland – EIS

As a teacher you can also claim tax relief on other expenses incurred because of your job like:

A CRB check
Use of car traveling to temporary workplaces and not just one school
Specialist clothing like sports kit
Washing of specialist clothing
Using your own home for work purposes

If you think you could be eligible to make a claim Tax Rebate Services can help you further. We specialise in helping teachers and educational professionals claim back what they are entitled to.

Call today on 0845 094 0005 or 01228 520477. We will be happy to help.

Overpaid Tax

Posted on April 24, 2013 by T Shanks

Have You Overpaid Tax?

If you are employed and not self employed it is likely that you will overpay tax at some point in your life. Paying tax is a necessity but overpaying tax is avoidable if, you equip yourself with the knowledge on how to avoid overpaying.

It is easy to assume that when you are employed the right amount of tax is always deducted from your salary. The reality is that sometimes you don’t pay the correct amount, and if don’t make a claim you won’t receive any tax you have overpaid.

The good news is you might be entitled to claim for overpaid tax that you didn’t even know about, and you can make a claim for the last four tax years!

Why Would I Have Overpaid Tax?

Numerous factors can cause you to overpay tax which include:

Having an incorrect tax code
Not claiming back expenses incurred because of your job like washing a uniform, buying or protective clothing or tools for work, using your own car or public transport to travel to temporary work places and paying into a professional body
Leaving the UK
Paying into a private pension
Being a non resident tax payer or landlord

How Do I Reclaim Overpaid Tax?

Each person’s tax position can be different, so you will need to decide what method of claiming back your overpaid tax is best for you. You can contact the tax office directly or Tax Rebate Services can assist you in finding out when and why you have overpaid tax, and then make a claim to get your overpayment refunded.

MAKE A CLAIM TODAY CALL 01228 520477 OR 0845 094 0005