What Expenses Can Be Claimed When Self-Employed? If you are self-employed you are probably wondering what expenses you can and cannot include in your Tax return to claim back a Tax rebate. Here we have a summary that may help you along the way. To ensure you receive the best possible Tax rebate it is […]
Other Forms of Refunds
Tax Relief for Other Occupations
Do you work for the Ministry of Defence? Perhaps you are a teacher, mechanic or even involved in sports? There are many other occupations where your situation might dictate an overpayment of Tax
Am I Entitled to Tax Relief?
Tax relief isn’t specific to a certain list of trades and industries, but is more so dictated by your personal circumstances, and the types of expenditure you incur whilst carrying out your work activities. Overpayments of Tax can happen in the following situations:
- You are required to clean and maintain work uniform
- You use tools and equipment for work that you have purchased
- Your employment requires you to work at temporary workplace locations
- Professional membership payments have been covered personally
- Your employer has deducted more Tax than required
More occupations that commonly give rise to a Tax overpayment are listed below, but if you feel that any of the above circumstances apply to yourself, please do not hesitate to get in touch.
Ministry of Defence (MOD) Tax Refund Claims
If you work for the Ministry of Defence then you are most likely be due a Tax rebate purely on the travelling costs you have incurred. The reason for this is mainly due to the shortfall in what you receive from the MOD and what is allowed to be deducted from your Taxable income. For example, the standard mileage rate paid by the MOD is 21p per mile, however, HMRC recognise an allowable deduction of 45p per mile.
Over the course of four years (the allowable time frame to make a claim), the amount of mileage underpaid often goes into the thousands of miles. In addition to claiming other allowances such as uniform Tax relief, average claims equate to around £2,500.
Regardless of whether you are still working for the MOD, have left or been made redundant, this does not affect your capability of making a Tax relief claim.
Tax Refunds for Healthcare Workers
Quite often healthcare workers are required to travel between various units, offices, and patients locations using their own vehicle. Sometimes these costs are not covered or reimbursed by the employer in which case an immediate Tax repayment situation would arise.
Also many types healthcare workers are also entitled to claim a flat rate allowance from HMRC for cleaning and maintaining their work uniform.
Not only this, but it is also common for expenses to be paid privately for professional subscriptions, such as the Royal College of Nursing.
Together, when you add up all of these expenses and factor into account that Tax relief claims can be made for four Tax years, rebates can quickly go into the thousands of pounds.
Tax Rebate Claims for Mechanics
Whether you run your own mechanic workshop, or an employee on PAYE, there are Tax relief claims made specifically for mechanics. Using your own tools and equipment for work related activities is one example and HMRC allow deductions for associated costs.
Further to using your own tools and equipment, do you use your own car at work? Perhaps to pick up parts and spares from the trade shop? Or maybe to attend to broken down vehicles? If your travelling costs have not been reimbursed by your employer, then this will most likely give rise to a Tax refund.
One other popular unclaimed Tax relief for people working as a mechanic is the flat rate allowance specified by HMRC to cover the costs of cleaning your work uniform.
Individually these claims may only be a few hundred pounds each, but collectively they can often go into the thousands. Contact us today and find out how much Tax you have overpaid.
Tax Refunds for Teachers
Are you a teacher working in the UK and paying Income Tax? Being a teacher can be a particular expensive. For example it is quite common for the following expenses not to be reimbursed by the employer:
- Professional subscription and membership costs (e.g. Teachers Union)
- Teaching material such as books and magazines, required for your work
- Travelling costs when working at temporary locations
- Costs associated with cleaning and maintaining work clothing
Tax relief claims for teachers can be made for up to four Tax years. This means that any costs suffered from 6th April 2013 can be claimed for.
At QuickRebates, the average claim made is in the region of £2,500. Contrary to belief, HMRC are perfectly willing to repay overpaid Tax. The problem lies in that they need to be made aware of when this has happened.
Tax Refunds on Developing Hobbies
Quite commonly we see clients that have an expensive hobby, but the activity has the serious potential of becoming an income generator. An example of this would be music producing, or perhaps that of a craftsperson. With a little guidance and direction, it is possible to take these interests to the next level and to create a formal business, and making money from these activities.
By registering as self-employed, not only are you allowed to claim a wide range of expenses, but the reliefs available are much greater for those in PAYE. For example, commuting costs are allowable when you are self-employed, but not under PAYE.
QuickRebates will assess the activity to see whether it would qualify as a business in the eyes of HMRC. It should be clear that you have a business strategy going forward and it’s more than just a hobby.
Starting a new Business?
For those people looking to start, or have already started their own business, this particular occasion can give rise to a number of specific reliefs and allowances.
The main reasons for this is the sheer amount of expenditure sometimes required to kickstart a new business. From tools to computer equipment to advertising to vehicles and business administrative costs, the expenses can add up to thousands, sometimes even tens of thousands.
Fortunately, HMRC understand these costs can be problematic for new entrepreneurs and specific allowances and reliefs are made available to people starting out in business. One relief is the capability of being able to claim start up costs for seven years before starting business. Another relief is the different ways that opening trade losses can be offset against other income.
All of the necessary UK Income Tax and National Insurance rates and allowances for the Income Tax year 2018/19 – fiscal year ending 5th April 2019.
Tax refunds are great, everyone loves a Tax rebate from HM Revenue & Customs. In many situations overpayments of Tax occur without the Tax payer knowing, or even HMRC having any knowledge. Because of this, they never get paid but get swallowed up by the Tax office over time. You don’t even need to register […]