Tax rebate help

mushtafa

mushtafa

mushtafa

Soldato
Joined
17 May 2013
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Location
West Sussex, UK
Warning; Long post for GD!


Need some advice if I can.

Being in the motor trade, I can claim back the VAT for the tools I've bought to do my job. I know I can claim back 6 years, and assume they will then change my tax code so I pay less tax in the future.

I've seen several threads on forums of people doing this themselves; Send a letter to HMRC, wait 3 months, fill in some forms, cheque in the post.

I wrote a letter to HMRC, they finally replied and said no to my request. I rang the number and spoke to someone and she agreed with me that I can do it, and it should be very simple. Anyway, we arranged a call back, it never happened.

How can I get this sorted? :confused: My original letter was posted end of February!

I've seen companies advertised who will do this for me and charge 30%+VAT. This sounds like a lot. Is it?
 
The companies who do it for you absically take over a third of your savings for a simple form so DIY is what i always advise people to do.

HMRC are a joke with dealing with post due to short staffing. I chased up a work letter which hadnt been replied too for 3 months. The officer admitted that due to staff shortages and backlog all they post for the last few months had been shipped to another office and just kept in a room unopened until they clear the backlog and then they will be shipped back!

Anyway back to the matter in hand. You cant claim the VAT back unless you are VAT registered which I assume you are not which is where the confusion comes in.

However you can claim tax relief on the total cost of items (inc VAT) you have had to buy for work so long as they are wholly, exclusively and necessarily for work.

Its a P87 you need to complete and send in.

https://www.gov.uk/government/publications/income-tax-tax-relief-for-expenses-of-employment-p87

complete one for each tax year. They are pretty simple and from memory you have a choice whether you get a cheque back or a change in tax code.

Bear in mind if you are claiming more than £2,500 per annum in expenses you have to complete a self assessment tax form instead (which is more complicated)
 
Greebo said:
...You cant claim the VAT back unless you are VAT registered which I assume you are not which is where the confusion comes in.

However you can claim tax relief on the total cost of items (inc VAT) you have had to buy for work so long as they are wholly, exclusively and necessarily for work....
Click to expand...

Is this not the same thing? You're right, I am employeed and taxed PAYE.
I want to claim for £1k worth of tools for the last 6 years. This is easy to prove as the Snap-On rep can print off my purchase history.
 
just fill out that form and follow the instructions. Should take you about 10 mins tops. And that is what these companies would charge you £360 for.

Or I will fill them out for you for £200? ;)
 
mushtafa said:
Is this not the same thing? You're right, I am employeed and taxed PAYE.
I want to claim for £1k worth of tools for the last 6 years. This is easy to prove as the Snap-On rep can print off my purchase history.
Click to expand...

no tax relief and VAT are different. Vat back would be 20%.

Tax relief will be 20% or 40% depending if you are a higher rate tax payer on the total amount including VAT.

Like I said befoire, if you mentioned VAT to them that might be why they said no although they could have been helpful and asked if you meant tax relief and pointed you in the right direction form wise :)
 
Thanks for the help Greebo, but another question... :o

I had a look. The flat rate of expense is only £120, so according to the form I need to fill in the 'Other expenses' section. Can I put 'tools' followed by the amount for that year, or do I need to list every tool purchase separately in the table?
 
I'm confused again! - I'm not completely sure what I'm actually claiming back.

Basically I've got my statement from the Snap-On rep covering the last 6 years. This totals £5k. Would I better off listing this separately, or shall I just except the flat rate expense of £120 per year?

I assume the tax I'm claiming back is 20%? - So in my case, £1k. Am I correct?
 
HMRC have devised certain fixed amounts for each job. And they offer a refund on the income tax paid on the items. This is a fixed rate allowance (The majority of HMRC staff know it as a "FRE")

You can claim 6 years as that is how long the records are held for.

If they are replacements, or new tools required for the job, as long as they are used purely for work and you have the receipts then you can claim the income tax back on them.. If no receipt then you just get the standard allowance.

If you are just going to claim the standard FRE, then it should be processed no problem, if you are claiming for additional tools, be prepared for correspondence as its you first claim, I think they will be more likely to ask for proof (ie the receipts)

If you have all the receipts then you have enough information to claim. You don't need to provide the actual receipts just do a list of the expenses.

Split the list by tax year and provide P60s for each of the years if you have them (not necessary but im all for making their job easier which results in your money quicker :p)

So in your case you could just claim the FRE (flate rate) but you will only get £24 per x 6 = £144.

Since you have the evidence that you have spent more, claim a total for each year (purely cause your tax may be different in each year or the tax rate may change). Don;t send the receipts though, they arent needed. HMRC will ask for them if needed.

And yes, if all goes to plan within 9 weeks you should have a cheque for the previous 6 years and a change to your tax code for this current tax year (dont forget to split you expenditure up to years from 6th April to 5th April.

And yes your rebate should be £1,000. However if you earn enough in each year to pay 40% tax you will get £2,000 back.
 
no problems. Good luck. It should go through without a hitch, they get loads per year.

Amazing how many mechanics dont claim them though although we have one at work with a 1756L tax code so i guess he claims a lot each year :)
 
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