Tax refund and head over Parapet

kiteman21

Hello one and all
I was wondering if someone can settle an argument my wife and I are currently having over the dining table.
My wife works in the NHS, and a company has told her, and her colleagues, that they may be due a tax refund on such things as being a member of professional bodies etc.

I have told her not to bother as currently she does not fill in a "tax return" form and bringing this matter to their attention might flag this up.

She has nothing to hide from the tax-man, apart from interest on some savings, but I feel the hassle of doing a tax return will far outway the benefits that can be obtained by this company, (who incidently want 40% of any money returned).

Your help in this matter would be greatly appreciated

Thanks in advance

Kiteman21

PlutoinCapricorn

I am sure that helpful NHS people will soon appear, but in the meantime want to say that there is never any need to use one of those companies that offer to get tax refunds on your behalf in return for a percentage.

Many previous poster have explained how to apply for such things as professional publications, uniform cleaning etc. if your employer does not pay for this.

00ec25

1. stay away from that company, 40% fee - outrageous

2. your OH can reclaim the tax paid on her professional subscription but not on any training courses

3. she does not need to do a SA tax return to make a claim, merely write a letter to her tax office. Prof subs are treated as "simple" issues which, for someone who is otherwise subject to PAYE, would not normally require a full return

4. i am making a gross assumption that your OH is not a high rate taxpayer, in which case she is not "hiding" her interest on savings anyway, they have already been taxed at basic rate at source (unless she has some dodgy offshore things going on LOL)

if she has a few minutes spare get her to read this thread, it's really quite self explanatory
http://forums.moneysavingexpert.com/showthread.html?t=1864929&highlight=doctor

TM1976

If your wife has net employment expenses of below £2,500 per year then she doesn't need to enter self assessment and do a tax return, just a P87 expenses on employment form will suffice (this is around £500 per year in refunds if she is a 20% tax payer).

As far as I understand a self assessment tax return can be investigated at a later date but a P87 claim is agreed when the cheque is issued. Please someone correct me if I am wrong here.

In any event 40% of the refund most likely will not be a fair reflection of the cost of the work done to make the claim.

fengirl_2

There is a very long thread on here called Wash your uniform at home which covers this.
If your wife is a nursing-type person, then there is a fixed rate expense allowance to cover the cost of things like tights and shoes. The list can be found at www.hmrc.gov.uk under fixed rate expense allowance.
In addition, she can also claim for professional fees and a list of the allowable ones are also on that website.
No form is necessary, she can just write to her tax office setting out what she wants to claim and for which years. She can go back 6 years if she was in that job for that length of time.
She needs to ask for a payable order for back years, NOT a change of code number for the current year.
Do not use a tax reclaim company. There is general agreement on here that Unions are acting irrisponsibly by recommending these companies when its something one can easily do oneself. there is nothing magic about it.

trevormax

TM1976 wrote: »

IAs far as I understand a self assessment tax return can be investigated at a later date but a P87 claim is agreed when the cheque is issued. Please someone correct me if I am wrong here.

This is correct. Self Assessment Tax Returns are not all checked when they are filed. HMRC run on a "pay now, check later" thing. With a P87, the claim is gone through and checked by an HMRC employee before any money is paid out. So as long as the HMRC employee knows what they are doing and you have not put incorrect information on the form, it should be correct 100% of the time (in theory).

Tarasam

Fengirls advice is spot on, just write a letter to HMRC and request it be backdated, she'll be entitled to it, a quick phone call to HMRC would be a help to just to check they've all her P60 dets on record so you know whether you need to provide these with your request.

TM1976

A typical nurse/midwife could have £400-£450 of allowable employment expenses in a year. £1,000 is the threshold for moving up to a P87.

Can they claim by letter if they have say 3 years of expenses? Should they claim all against one year or should they do a separate letter for each of the years?

suso

TM1976 wrote: »

A typical nurse/midwife could have £400-£450 of allowable employment expenses in a year. £1,000 is the threshold for moving up to a P87.

Can they claim by letter if they have say 3 years of expenses? Should they claim all against one year or should they do a separate letter for each of the years?

Put all three years claim in one letter. Detailing how much you paid for subscriptions for each year, or Fixed rate expenses claimed for the years.

No need to complete a P87 even if its over 1000.00 £

Fixed Rated Expenses are set by HMRC for each year.
Professional subscriptions you need to provide the prices paid for each year of claim and you can claim back to April 2003 at the moment.

As fengirl says, ask for the earlier year to be repaid by payable order (cheque) NOT as an earlier adjustment in the code.

Its all quite a simple process, but as with everything with HMRC at the moment, it will take time due to postal delays being experienced by the various offices (between 5 - 12 weeks)

kiteman21

ABSOLUTE SUPERB info.

Thank you one and all, who have contributed.
My next question is, why is it the wife did not believe me, but as soon as I showed this thread she went "OK" ............... oh the joys of marriage;)

TM1976

Thanks for the info Suso.

Employment expenses over £2,500 are supposed to go through self assessment. In practice is it OK to do these by letter also?