Mechanic tax refund.....How?

TM1976

BenG1 wrote: »

You may also encounter problems when claiming for expenditure pre 05/04/04. It is possible (if you know what your doing) to claim back as far as you have receipts. We have had success claiming back to 1984 in one instance.

How do you claim for things prior to 05/04/04?

Crispinator

BenG1 wrote: »

No, I'm talking about claims for PAYE emloyees only. However, if the sum of the pools claimed for in any particular tax year is greater than £2500 then the claim needs to be made via self assessment. Nothing to do with self employment though.

Employees can't claim capital allowances, which you have referred to in your earlier post. I also doubt you have claimed back as far as 1984 as dealing with HMRC as often as I do I know that is not possible, as alluded to earlier.

(I know this is my 1st post, but I had to register as these sort of companies get on my nerves. Unfortunately the tax sector is unregulated so there's little one can do about this. To anyone thinking about the tools' claim, advice earlier in the thread is perfectly fine).

BenG1

That’s just the sort of misconception and bad advice that could cost a potential claimant their claim.

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“Employees can't claim capital allowances”

Yes, they can. See EIM36610, EIM50700, EIM36910, help sheet 206, available to download from HMRC website. I could go on.

The problem arises because the rates of Writing Down Allowance, Small Pools Writing Down Allowance and First Year Allowances differ for every year from 04/05 to 09/10 and HMRCs guidance for older years is not readily available.

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“I also doubt you have claimed back as far as 1984 as dealing with HMRC as often as I do I know that is not possible, as alluded to earlier.”

As long as we have proof of the expenditure then items from pre-04/05 can be added to the Capital Allowances pool which, subject to the appropriate writing down allowance (WDA or SPWDA), is offset against tax from 04/05 and the balance of the pool carried forward to the next year and then so on. Capital allowance rules allow this as long as a Self Assessment return has not been issued for that year. Which as we are talking about PAYE employees is not likely.

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"To anyone thinking about the tools' claim, advice earlier in the thread is perfectly fine."

We wish you the best of luck with your claims whichever way you go about it.

Crispinator

Apologies, I will concede my comment on employees claiming capital allowances.

However the way you claim the capital allowance for years pre 04/05 seems to be a very aggressive claim to me and I would expect under HMRC scrutiny it would fail.

BoGoF

The 'going rate' for these companies is 60% of any refund obtained I believe (has anyone reported the posts advertising his companies services).

They have found a niche in the market, HMRC have had to concede that capital allowances can be claimed on the tools purchased by mechanics and a few firms now specialise in this field.

TM1976

Although there are some negative comments on here if an agency could claim more for the mechanic. As far as qualifications go it's not necessarily expected as a qualified accountant or tax adviser wouldn't get involved in this type of work as it doesn't pay enough - as BoGof says - it's a niche market.

BenG1's posts on here break forum rules - but if you read all the post you can see his beef as it's possible he could have claimed more for the OP.

This doesn't mean that's the case for all % based agencies but in some cases the right advice can pay dividends.

Titchybabe

BenG1 wrote: »

It can be a bit more complicated than just writing a letter.

I have written the letter and submitted all my partners expenses for the last 5 years (all separated by tax year with P60) which is way more than £120 a year they have taken 4 months to finally make a decision and all they have done is refunded him a cheque for £23.20 for each year!! (£120 x 20%)

I need to write back to them to appeal .I am capable of doing the tax comps as i'm AAT qualified but not sure what I need to do for each year can anyone help me on this? I am going to enclose a copy of the links to the above notices on their website and I am sure he is due a refund of £400!!

Can anyone give me some guidance?

Gertie_Walker

You need to refer to the original claim and point out that the amount claimed for each year exceeds the fixed rate deduction and you consider that the additional sums are due. Can you confirm that these were replacement items as no relief is due for inital purchases?
Ask them to explain exactly why they are refusning the clain.

david.linaker

dont suppose anyone is available online to help me draft up a letter to the HMRC. just need a few pointers of what to include. thanks

jon_hunkins

david.linaker wrote: »

dont suppose anyone is available online to help me draft up a letter to the HMRC. just need a few pointers of what to include. thanks

^^^^^^^^^^^^^^^as he said^^^^^^^^^^^^^^^^^