Need help with flat rate uniform expenses

Mint_choc_chip

My husband recently applied for flat rate expenses backdated 5 years for washing his work uniform at home. This works out at £60 per year. However they only sent him a cheque for £42.91. We wrote to the HMRC requesting the £300 claim be paid they said 

"You receive an additional 60 allowances for your tax coding but will pay £12 less in taxes each year. Your repayment of £42.91 is correct and no additional payment is due"

But how is that correct? what does their statement even mean? How can he be allowed to claim back £300 but only be given £42.91? I really don't understand and they haven't taken the time to explain.  Please can someone help me understand? Thanks

[Deleted User]

Hi,

The standard flat-rate expense allowance for uniform maintenance is £60. By claiming a uniform tax refund, you'll get back the amount of tax you would otherwise have paid on that £60. So if you're a basic-rate taxpayer, you'll get 20% of £60 as a rebate – which is £12. Higher-rate taxpayers will get back £24.

Look HERE,

[Deleted User]

Additionally one can only claim for four years plus the current year. The £12 due for the current year will be processed through payroll.

Mint_choc_chip

I don't understand why say claim £60 when he actually can't! He was logged into his account and did it online, if it was personal to his tax bracket, why did it still give this incorrect information on the HMRC portal? If £60 is the flat rate, no one would ever get paid it if it only pays out the % based on his tax rate, no one would get the full £60 surely!?!

DullGreyGuy

Mint_choc_chip said:

I don't understand why say claim £60 when he actually can't! He was logged into his account and did it online, if it was personal to his tax bracket, why did it still give this incorrect information on the HMRC portal? If £60 is the flat rate, no one would ever get paid it if it only pays out the % based on his tax rate, no one would get the full £60 surely!?!

Would always help if you say who "they" are and even better provide a link to what you read.

Many people dont understand what is meant when HMRC etc say tax relief on £60... its not you get £60 but you get your nominal tax rate of £60. If you look at https://www.gov.uk/guidance/job-expenses-for-uniforms-work-clothing-and-tools it gives an example about a third of the way down page 1 (the same 20% of £60 = £12 for a standard rate tax payer)

Dazed_and_C0nfused

He can claim an expense of £60.

Which for most people will save them £12 in tax as it means £60 of income avoids being taxed (£60 x 20% = £12).

The actuals amounts refunded will often be slightly less than £12/year as most people on PAYE owe small amounts each year and although usually ignored they are taken into account when someone claims a refund for some other reason.

sheramber

You do not claim £60.

You claim tax relief  on £60 of your income - 60 @20% if that is your rate of tax deducted. So you pay no tax on that £60 of income.

You do not get £60 deducted from your tax due.

The same as your claim for marriage allowance relief  is at 20% of the amount transferred.

molerat

It works in exactly the same way as the marriage allowance from your other post

https://forums.moneysavingexpert.com/discussion/6413852/confused-about-marriage-tax-allowance

And the same with 45p mileage allowance, HMRC will not pay you 45p just the tax you would have paid on it.

You get tax relief on the claimed amount, not the claimed amount.