NHS worker since 1999? Are you due £1,000s of tax back

in Cutting Tax
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Former_MSE_Megan_FFormer_MSE_Megan_F Former MSE
418 Posts
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Hi all,

We've written a new NHS tax reclaim guide and would love your feedback.

How did you find the info? Was it useful? Do you have any other tips you'd add?

Thanks for your help!

MSE Faye
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Replies

  • I'm really uncomfortable with this - I'm an NHS employee and had I been paid my usual salary whilst training, then this seems to be an exploitation of a tax loophole and not all all in the spirit of the scheme. The NHS generally is a great employer in terms of pensions and benefits. Screwing the system.
  • sunnyflowersunnyflower Forumite
    290 Posts
    Part of the Furniture 100 Posts Combo Breaker
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    I disagree with you, if someone is legally entitled to claim tax relief / a refund why on earth shouldn't they?
  • PennywisePennywise Forumite
    13.4K Posts
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    I disagree with you, if someone is legally entitled to claim tax relief / a refund why on earth shouldn't they?

    There's a tax term called "undue enrichment" which is why.

    It sounds as if these staff continued to receive their normal wage, taxed and NI'd as normal, so they suffered no loss.

    Had the NHS trusts understood things properly, they'd have given bursaries (which are tax/nic free) equivalent to the staff "take home" pay so they were no worse off by doing the course.

    As it looks to stand, the staff will now end up better off by getting their full pay and getting their tax/nic refunded. That's undue enrichment.
  • CarlythCarlyth Forumite
    8 Posts
    I'm really uncomfortable with this - I'm an NHS employee and had I been paid my usual salary whilst training, then this seems to be an exploitation of a tax loophole and not all all in the spirit of the scheme. The NHS generally is a great employer in terms of pensions and benefits. Screwing the system.

    Sorry, I disagree. It will not be the NHS paying the money back it will be HMRC system because the NHS never informed them that employees were being seconded into full time education
  • EmmawinkEmmawink Forumite
    3 Posts
    What about the trainees who did experience loss? Many of my colleagues and I took substantial wage cuts to expand our knowledge to provide a more effective service within the NHS in our specialist field.
    HMRC have and still are being obstructive, some trainees have been waiting 18 months to reclaim what is owed to them, it presents as an efort to stop prole applying. HMRC have and continue to give incorrect information to trusts...its currently a lottery littered with inconsistencies with no clear guidance from HMRC, some are entitled..others who comelted the same couse, sa me trus are not. All people want is transparency and to be treated fairly in this process.
  • I Was seconded to do my nurse training from my nhs trust still employed by them 2000-2003 I took a drop in wages and was on basic band 2 pay I'm sure this will apply to me ? I have also just spent the last 12 months doing my degree but worked with that so not sure about that one any advise greatly appreciated
    sandy
  • Dazed_and_confusedDazed_and_confused Forumite
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    sandy32 wrote: »
    I Was seconded to do my nurse training from my nhs trust still employed by them 2000-2003 I took a drop in wages and was on basic band 2 pay I'm sure this will apply to me ? I have also just spent the last 12 months doing my degree but worked with that so not sure about that one any advise greatly appreciated
    sandy

    I wouldn't get your hopes up - the MSE article fails to mention the time cut offs for claiming back tax (or I suppose you could say they have failed to explain why the 4 year cut off doesn't apply to widening access) - gov.uk explains you can only go back 4 years

    If you think you’ve paid too much tax but you’ve not had a P800 or need a refund sooner, you can make a claim to HMRC for any of the 4 previous tax years.

    https://www.gov.uk/claim-tax-refund/too-much-tax-taken-from-your-pay
  • CarlythCarlyth Forumite
    8 Posts
    I wouldn't get your hopes up - the MSE article fails to mention the time cut offs for claiming back tax (or I suppose you could say they have failed to explain why the 4 year cut off doesn't apply to widening access) - gov.uk explains you can only go back 4 years

    If you think you’ve paid too much tax but you’ve not had a P800 or need a refund sooner, you can make a claim to HMRC for any of the 4 previous tax years.


    Hi
    HMRC have said they will cover years 1999-2013 I will try and attach the thing and yes! You need to contact your HR department of the trust that seconded you and they have to claim on your behalf. I phoned HMRC and Payroll and was told HR have to initiate it as they are overwhelmed with claims.
  • CarlythCarlyth Forumite
    8 Posts
    Widening Access Training Scheme – have you overpaid tax and national insurance?
    NHS Payroll departments have been contacting staff who may be eligible to receive a refund of Tax and National Insurance (NI) contributions, paid in error, whilst they were in full-time education.

    Her Majesty’s Revenue and Customs (HMRC) have stated that employed staff also in full-time education are exempt from Tax and NI up to an annual allowance on earnings of £15,480, whilst in training, provided they meet the following conditions:

    The claimant must have been:

    An existing NHS employee when starting a training scheme (this could have been at another NHS organisation).
    Looking to widen their knowledge.
    In full-time attendance at an educational establishment for at least one academic year, and must have attended the course for at least 20 weeks in that academic year. If the course is longer, the employee must attend for at least 20 weeks on average in an academic year over the period of the course.
    Claims for refunds of tax and NI can be made for the period September 1999 to March 2013.

    HMRC normally only accept refund claims for the previous 6 tax years. However, this restriction has been extended back to September 1999, to coincide with the start of a specific training scheme; the Widening Access Training Scheme.

    NB: If you were on a training course that began prior to September 1999, then you will not be eligible for a refund.

    You should claim directly to HMRC, and they ask that you apply in writing and provide the following information:
    National Insurance Number
    An explanation of why you think you are due a refund, (i.e. incorrectly paid income tax and National Insurance contributions made on payments whilst studying full-time)
    Confirmation of which NHS Trust you are currently employed by, and who you were employed by during the period of your training
    Confirmation of the exact start and end date of your training.
    Confirmation of the amount of bursary you received to attend the course (this is probably your basic wage). Please note, any additional paid work (bank or term time) that you carried out for the NHS during the period of your training would still be liable for tax and National Insurance contributions. If you did no additional paid work for the NHS during the period of your training, then please advise this in your letter. If you did do additional paid work then you must provide HMRC with sample copies of your payslips for each of the tax years involved.
    Proof of your student status (ie letter of secondment from NHS to attend, and any certificates attained).
    Payslips for the period of training if you have then.
    All written claims should be sent to:
    HMRC
    Widening Access Central Co-ordination Team
    Multi Refunds Room BP2001
    Benton Park View
    Newcastle-upon-Tyne
    NE98 1ZZ

    Some members have already successfully claimed a refund, following notification by their employer that they may be eligible. You should contact HMRC directly, with all the relevant information, to find out whether you are also eligible for tax and National insurance contributions made during your own training period.
  • Carlyth wrote: »
    Widening Access Training Scheme – have you overpaid tax and national insurance?
    NHS Payroll departments have been contacting staff who may be eligible to receive a refund of Tax and National Insurance (NI) contributions, paid in error, whilst they were in full-time education.

    Her Majesty’s Revenue and Customs (HMRC) have stated that employed staff also in full-time education are exempt from Tax and NI up to an annual allowance on earnings of £15,480, whilst in training, provided they meet the following conditions:

    The claimant must have been:

    An existing NHS employee when starting a training scheme (this could have been at another NHS organisation).
    Looking to widen their knowledge.
    In full-time attendance at an educational establishment for at least one academic year, and must have attended the course for at least 20 weeks in that academic year. If the course is longer, the employee must attend for at least 20 weeks on average in an academic year over the period of the course.
    Claims for refunds of tax and NI can be made for the period September 1999 to March 2013.

    HMRC normally only accept refund claims for the previous 6 tax years. However, this restriction has been extended back to September 1999, to coincide with the start of a specific training scheme; the Widening Access Training Scheme.

    NB: If you were on a training course that began prior to September 1999, then you will not be eligible for a refund.

    You should claim directly to HMRC,.

    I would disagree with this advice to claim direct to HMRC if you do submit a claim to them they will hold onto that claim for 6 months, send it back to you and tell you you MUST apply through your employer. The advice form HMRC is they will only consider a direct claim if you can not gain support from your employer, but you must provide proof of that.
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