Self Assessment - Backdating Employment Expenses - Possible?

FudgeHouse

Hello

I am currently finalising a Self Assessment Tax Return. This is the first time I am completing this form and am doing so purely on the basis that my income for 2014-15 has pushed me in to the 'High Income Child Benefit Charge' bracket.

Completion of the online form has highlighted that, in addition to the High Income Chile Benefit Charge, I have also underpaid tax on my secondary employment (HMRC appear to have been slow putting me on the D0 PAYE code in relation to this employment), and so I owe an additional £220. (I guess HMRC would have caught up with me in this by way of a P800 at some stage had I not been submitting a Self Assessment).

I have realised that I can claim Employment Expanses in relation to this secondary income as I am a member of an approved professional organisation which is directly relevant to that work, and in addition am I am required to wear a uniformed shirt (with a company logo on), which I launder myself and therefore can claim £60. I have entered these in relation to the 2014-15 tax year that I am completing the return for (first question - do I need to enter any specific wording in the notes, or will just a short description suffice?)

Second queation - I also wonder whether I can claim back these Employment Expenses for previous tax years, in order to further reduce my liability for 2014-15 on this self assessment form, and if so how many years I can claim back for? I have been a member of the professional body for greater than 10 years, and have been required to wear a uniform for around two.

Many thanks in advance

Darksparkle

https://www.gov.uk/tax-relief-for-employees/how-to-claim

Think the earliest year you can claim now is 2011/12

FudgeHouse

Darksparkle wrote: »

Think the earliest year you can claim now is 2011/12

Thank you for the link, however that page doesn't mention backdating back to 2011-12 on the 2014-15 return, or whether I should submit the P87 form?

Darksparkle

FudgeHouse wrote: »

Thank you for the link, however that page doesn't mention backdating back to 2011-12 on the 2014-15 return, or whether I should submit the P87 form?

The 2014/15 return is purely for 2014/15.

You never said the amounts of expenses you were looking to claim each year, that's why I posted the link as the actions to take are based on the amount you are looking to claim.

If less than £2500 then you complete a P87 for 2011/12 to 2013/14.

FudgeHouse

Darksparkle wrote: »

The 2014/15 return is purely for 2014/15.

You never said the amounts of expenses you were looking to claim each year, that's why I posted the link as the actions to take are based on the amount you are looking to claim.

If less than £2500 then you complete a P87 for 2011/12 to 2013/14.

Many thanks - that makes sense now - The amounts are less than £2500 per annum, so I will use my SA for the 2015-15 tax year and complete a P87 for 11-12 and 13-14 as you suggest. Thank you again !

chrismac1

I'd just put it all through on the SA return and use the white space to explain the backdating element. In my view HMRC never read this stuff - even when they come out to do enquiries! - but it covers you in case there is any comeback.

The tax impact is the same as with the P87s. But less needless form-filling for you, for HMRC to wait 12 weeks to open your letter, probably lose one of them and possibly screw up the coding on the other one.

At least with the SA route you are taking charge of your own destiny.

jimmo

Whilst Chrismac 1’s suggestion might seem quite practical I am not so sure that an unrepresented taxpayer should try it.
1) It is wrong in principle.
2) If you have been a 40% taxpayer throughout the whole of 2011/12,2012/13,2013/14 and 2014/15 it will give the correct result for your pure tax liability. If you were a 20% taxpayer in any of those years you would effectively be claiming double tax relief for those years.
3) For the Child Benefit Tax Charge you would definitely be setting 4 years worth of expenses against 1 year’s income and producing a false result.
4) Depending on the amounts involved you may be discarding your entitlement to repayment supplement (interest) for the earlier years. The current interest rate is 0.5%.
https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates
Not exactly a mind blowing rate but some would say its worth the effort of filling in 3 forms.
As you had to ask on a forum I would think that you would be far more comfortable filling in 3 forms P87 than doing something witch is legally wrong.
Statistically the chances of HMRC picking you up for following Chrismac 1’ s suggestion are pretty remote but Murphy’s law says you are the one they will pick on.

Wayne_O_Mac

chrismac1 wrote: »

I'd just put it all through on the SA return and use the white space to explain the backdating element. In my view HMRC never read this stuff - even when they come out to do enquiries! - but it covers you in case there is any comeback.

It doesn't 'cover them', an explanation of the backdating in the white space box would be a confession to deliberately filing an in inaccurate return.

I'm frankly surprised you'd even suggest this.