Expenses reimbursement tax confusion

maralions

Hi all,

I have an issue with my self assessment tax. In short, I work in lion conservation, and someone very kindly offered to buy me computer equipment for my work and future studies. So the computer was a gift and part conservation donation.

I bought the computer in the 11/12 tax year from my personal bank account. The person making then donated the money to a university as it was a charitable gift.

This was reimbursed to me by the university in May 2012, in the next tax year.

The problem I have is this:
As I keep my tax up to date, and as I am saving for a Masters course in September, this takes me over my tax limit if stated as an income. It's not income as it is a reimbursement, but the expense came out of the previous tax year.

Can I basically ignore this/not state it as income providing that I have NOT stated it as expenses last year? Or is there a way to claim it as an expense for 12/13 that was reimbursed?

I have another question: I am raising money for my studies. I know that students do not pay tax - is all of my income taxable over the threshold?

Thanks
Sara

Savvy_Sue

maralions wrote: »

I have another question: I am raising money for my studies. I know that students do not pay tax - is all of my income taxable over the threshold?

Sorry to shout, but this is NOT TRUE!

ANYONE whose taxable income is higher than their personal allowance is liable to pay tax. This includes children, students, pensioners, unemployed people, stay at home parents, uncle Tom Cobley and all.

IF you are only working outside Uni term time, and IF you do not expect your income to exceed your personal allowance, THEN there is a form you can complete to allow your employer to pay you without deducting tax.

Otherwise you pay tax like the rest of us on any income over your personal allowance.

I'm not sure of the answer to your expenses question, but the payment of expenses isn't usually taxable.