RIFT Operation TAX REFUND

[PARALLEL TRACK]

Picked up the RAF News this week for a short read. Full page advert for a tax refund wrt HDT and GYH for MOD employees. Anybody know much about the organization RIFT or the HMRC scheme before I contact them?

Regards

//trk

[VinRouge]

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/321897/490.pdf

Lots of detail here for specific examples:


EIM31200 - Employees using own vehicles for work: mileage allowance payments, AMAPs, MAR, passenger payments: table of contents (http://www.hmrc.gov.uk/manuals/eimanual/EIM31200.htm)

Don't use a company. They will take a cut of the money you are entitled to, if you do the legwork and you have an entitlement, it's pretty straightforward to do.

[5 Forward 6 Back]

Can't see anything in there that refers to GYH. Which examples should I be referring to? Anyone done it recently?

[Sketretal]

All you need to know is in 2015DIN01-005

[VinRouge]

Think it's form P87 for those not over self assessment thresholds

[jayc530]

Has anyone successfully claimed against HTD?

[VinRouge]

Yes but the circumstances are pretty specific. The most likely successful applicants will have had a short term posting (less than 2 years) on a commute with significantly different travel time than their current commute.

Examples would be commuting to service courses For a period of time or temporary detached duty away from your home unit.

You can't claim the year you did in a different post on the same station qualifies!

You can claim all site visits claimed through mma using your personal vehicle. Keep records.mjpa is good for this as you can get an annual printout off jpg of your mma claims. Good example would be visits to Air when service transport aren't agailable, travel to courses.

I'm not sure about travel to AT expeds, if you can demonstrate its work related, I would say give it a go.

[5 Forward 6 Back]

What about GYH, as mentioned in the OP?

[VinRouge]

T'will depend upon whether its a temporary (<2 year) posting I believe.

Not sure though, as I only looked into MMA and HTD.

May be worth posting findings on here to prevent peeps handing over cash to companies when the claim is pretty blinking straightforward. you can backdate 6 years I believe also.

EDIT: HMRC, the beggars, changed the rules. you can retrospectively claim 4 years.

[Melchett01]

I just last week stumbled across the DIN mentioned by Skeletal. The system isn't exactly shouting from the roof tops about this is it?

I'm going to try and make a claim for HTD / GYH as I've found my last 2 posting notices which state a 2 year tour, which according to the DIN seems to be classed as temporary and therefore eligible to claim. But I have an uneasy feeling that there maybe a gotcha as alluded to that even a 2 year tour, whilst classed as temporary, may be viewed as more permanent than temporary by HMRC if it's 2 years spend driving from home to the same base day after day ... I'm almost sure it will be a small print gotcha.

And from form P87 you can also claim professional subscriptions I note. Previously only seen mentioned for the likes of Engineers and Medics that required to be members of professional bodies, but noting the wording that you can claim relief for subscriptions to bodies that are required for or may be helpful for your job - and it's that last bit I'm banking on - I think the rest of us non 'professionally qualified' types might also be able to claim. Looking down the list, it's a very long list and includes the likes of RUSI. Got to be worth a shot.

Either way, as the P87 appears fairly self explanatory, I'd strongly recommend doing it yourself rather than letting a company take a chunk of your cash for very little effort - you'll still have to do the donkey work of providing them with the data, it's only another half hour to fill the paperwork in.

[NutLoose]

And don't forget your PPI,


seriously, I got 8K back :)

[Whenurhappy]

I have also claimed in the past for 'additional expenses necessary to do my job'. Moving to a representation role in a hot climate meant spending many £100s on new uniforms (eg No 6 & No 8 provided but brevets, medal ribbons, sword hooks &c not funded), alterations, lightweight suits, recce visit etc. The UUA doesn't increase when you get a bigger dressing-up box to play with, regretfully. The warmer months here sees me drycleaning my No 6s once a week (I have 2 sets); same for suits.

I could demonstrate that these were over and above 'normal' expenditure and HMRC accepted it. Along with RUSI, RIIA membership, hosting gifts (every dinner party invitation means flowers and a small gift), posh stationery (latter two when on foreign staff college), posh clothing for my partner, depreciation on cars, depreciation of furniture in storage etc, etc. This all makes me sound a bit venal, but given that my partner is unable to work here, kids are by necessity in school in the UK (thanks, btw for the increase in school children's' visits - 6 pa now) and that we end up shelling out a lot of dosh to do HMG's business here (and for those familiar with the role, you will concur that we represent UK plc and not just the RAF, or indeed MOD) I think it's only fair to seek a bit of a refund of these additional costs which are outwith the allowances package.

[Davef68]

Think it's form P87 for those not over self assessment thresholds

Good luck with that - it took them over 6 months to process my last one!

[diginagain]

RIFT will take around 20% of whatever HMRC say you're entitled-to wrt motor mileage relief, once they've got you to do the leg-work gathering the relevant info. The HMRC online form takes 10 minutes to complete, once you have the same dataset to hand, and only requires you to calculate the total mileage travelled for that tax year. Fill-in the form and it works out for you the sum that you are claiming.

[Pontius Navigator]

Two points:

Eventually is quite right. Pay more claim more. The officers' tax allowance relieved at 20% was EXACTLY equal to the replacement costs of standard working dress over a 5 year life cycle. This was about 10 years ago and the relief had been frozen fir some time. Worth doing a costings exercise again.

Mess dress, No 1, Oxford Shoes, Caps, Brown gloves etc are all extras. Same would be true of a woolly pully changed more often than 5 years.

MMA, the award of MMA for a detached course might be for fewer journeys than you actually did. For instance you might be reimbursed for one return journey over a fortnight but you made two or more - claim the full mileage - petrol receipts can help.

You can also claim for Subsistence where your food costs are more than your allowance. Same with mess charges for accommodation and laundry*. Receipts again.

*That is for those in private or quarters and not those ordinarily in mess. Not sure about bean stealers but there is potential there.

[Melchett01]

Thought it worth re-opening an old thread with an update.

Just managed to successfully claim a tax rebate on 4yrs worth of HTD /GYH without resorting to RIFT and their 34% charges. It's all based around your postings, so if your AO has you at a location for <24 months it's classed as a temporary workplace by HMRC and you can claim business expenses. In practice that's tax relief on the difference between HMRC allowed rates and what you're paid in HTD/GYH.

Worth having a look at the RIFT site, if only to see what factors they look at and the legislation they refer to ITEPA 2003 s336-339 if I recall, and read the DIN which is the cut down version of the legislation. Other than that, the hardest part is accurately collating the data from your pay statements, the HMRC website does all the calculations for you so you can't get those wrong as long as you're accurate & honest. When I did it, I submitted my claim direct to HMRC on a tax return and had the cash in my bank within 2 weeks.

It can be done, just do a bit of reading to ensure you understand, which shouldn't be beyond most people on here given what we do, and save a huge bill by doing it yourself as diginagain noted.

[Pontius Navigator]

Also tax, remember if your other half does not use any or all of her tax allowance she /he can apply to have up to £1,060 0f the allowance transferred to you.

There are rules and I can't remember them all, but it is the person giving up the allowance that must apply. The main gotcha is the receipient must be on lower rate tax. For many of you it will only apply after retirement. Once they apply there is an immediate acknowledgement and a 12 week wait. It applies from the year you apply and is automatic thereafter. I think the allowance is index linked.

[Al R]

Good point.

Are you using your £212 marriage allowance? | Fiver a Day | Fiver a Day (http://www.fiveraday.co.uk/blog/are-you-using-your-212-marriage-allowance/)

[Pontius Navigator]

Though fiver a day is nonsense as neither £1060 nor £212 computes

[Background Noise]

Just managed to successfully claim a tax rebate on 4yrs worth of HTD /GYH......

Was this for separate periods, each of less than 2 years, or for a 4-year stint somewhere? I did 3 years on GYH but assumed I couldn't claim as it was more than 24 months - although I did wonder whether I could argue that it was only planned to be 2 years, initially but got extended.

[PPRuNeUser0211]

BN - would be worth having a look *caveat not a financial advisor* but iirc in the HMRC pamphlets somewhere is an explanation that if your job is expected to be less than 2 years then you can claim tax relief up until the point at which you find out it will be more than 2 years. Likewise however, the opposite applies so if you get a 3 year posting and then are short toured iirc you get short-changed.

Well worth a look into the details on HMRC's site and if in doubt, give their helpline a call to chat through what you think you have.

[ProSentia]

This sounds great if I'm reading it right. I left just over 3 years ago and my last 2 tours were about 18 months each. In the first case I travelled 32 miles each way daily and on the last tour 40 miles each way daily. The difference between my HDT and the HMRC rates of 45p / mile (first 10,000 miles) and 25p / mile (thereafter) will be quite substantial so the tax rebate could be sizeable. I have payslips here, but no assignment orders here at home. Perhaps a chat with my nearest friendly PSF?

Any more details would be much appreciated.

[Background Noise]

BN ... if your job is expected to be less than 2 years then you can claim tax relief up until the point at which you find out it will be more than 2 years.....

I can see that being true at the time, but not in retrospect. Just wondering what Melchett had achieved in arrears.

[Melchett01]

BN,

In this respect I just got lucky and fell into a bracket that was eligible in that I had 2 tours each annotated on my Assignment Order as being for 2 years and was posted either at the 2 year point or early to an OOA. The limit is 4 years, so you've got until the end of this FY to claim back to FY 11/12.

Now I'm no financial advisor, so do your own research, but as I understood it, if you are on a 2 year tour (as noted on your AO) but expectedly do longer, you can claim up to the 2 year point. However, if you are on a 3 year tour as per your AO then it's bad luck. I think the only get out in this instance is if you actually go very early before the 2 year point then you might be able to get something from the point of being told you were moving to the date of your move upto the 2 year point. So under NEM with its longer tour lengths I can see these sorts of claims becoming fewer in number in coming years.

In terms of what I got back, let's just say it was very worth the couple of days (cumulative) effort in to researching the rules and collating the data, broadly equating to the Op Allowance for 6 months in Afghanistan as I was doing 450 miles per week for one tour and 300 miles per week for the second tour. It's a nice rebate and is indicative of how little the MOD pays relative to what HMRC allows which is why I would encourage anyone to do some homework if they think they might have a claim.

But you must remember to subtract what you get in HTD/GYH from any HMRC totals. They are paid tax free so you can't claim relief on them, but on the difference between the HMRC and MOD rates.

[PPRuNeUser0211]

Worth noting, as I remember, that I don't think there's some pretty heavy caveats on daily commuting and such. All my claims were for a distant posting with weekly commutes so I can't remember what the details are, but bear in mind that the rules are designed for exactly that - being sent to the other end of the country for a year on a temporary posting, and the expenses that are incurred.

The devil is in the detail, as always, but HMRC do a fairly good job of walking you through it when you find the right place to look and phrases to search for.

[Background Noise]

Interesting. If you were to take it as 'expenses incurred', wouldn't it also include the cost of staying in the mess at the 'temporary' location?

[PPRuNeUser0211]

Yes, it does, in exactly the same way they'd cough up for a civvy staying in a hotel and not being fully re-imbursed by their company. Also food, but iirc not things like laundry, though don't quote me on that.

Mileage is not limited to the 2 journeys a month defined by the GYH scheme either iirc, it's 'reasonable' journeys or some such.

[finningleyprince]

Just heard about this, through a RIFT advert!
I'm not clever, but complete a tax return each year because I get child allowance, but am over the threshold set by Gideon.

I get GYH(P) for 180 miles (£6.43 a day)
Is it a case of 365 X 6.63 =£2419 per year X 1.40(higher rate tax)? =£3386, then £3386-£2419 = £976 claim on tax return?

I do sincerely apologise for being a biff, but calculus is definitely on my CV.

[Melchett01]

Just heard about this, through a RIFT advert!
I'm not clever, but complete a tax return each year because I get child allowance, but am over the threshold set by Gideon.

I get GYH(P) for 180 miles (£6.43 a day)
Is it a case of 365 X 6.63 =£2419 per year X 1.40(higher rate tax)? =£3386, then £3386-£2419 = £976 claim on tax return?

I do sincerely apologise for being a biff, but calculus is definitely on my CV.

The RIFT thing does work, but don’t use them! Before you start doing any sums the first thing you need to do is dig out your posting notice and check it has you down for a 2 year tour. If it does you fall under what HMRC class as temporary employment rules and can claim for GYH. Any longer and you are classed as permanent and you can’t claim tax relief on GYH. When you’re doing it remember you’re claiming on the difference between HMRC approved rates and MOD’s GYH rates.

[Pontius Navigator]

Associated with tax refunds are return journeys.

One that is clear cut it a journey to an airport. If your spouse drives you there you can claim her journey home and then the one picking you up. It was in QRs I believe but I am out of touch now. Naturally these then attract tax relief on the different rates.

I was also able to claim for journeys to rail stations. As far as MOD is concerned you could claim back 3 years on unit and a further 3 years on application through the central records.

Then on tax remember you can also claim subsistence difference too, not just on hotac and overnight but lunch/dinner too. What used to get me was the duty journey, say 10-14.30 buy lunch but no claim.