Your tax office cannot disagree with me, it can only accept your claim. Normally an FREA substitutes for an individuals expenses claim, although excess amounts can be claimed for in addition. When you submit a self assesment return the revenue starts from the assumption that you have submitted an accurate return. Each tax office is staffed by civil servants who work to a set of instructions and guidelines supplied by the treasury. Unfortunetaly the interpretation of those instructions and guidelines by the senior officials at area branch level, can often lead to discrepancies in the way cases are dealt with by different offices.
The fact that your submission has resulted in "no grief" is not the same as the fact that it is either necessarily correct or accepted as final . If they discover that you or anybody else has claimed for items that should be disallowed they would have no hesitation in reclaiming the applicable tax owing with interest and possibly penalty. On the other hand the claim may well be correct. In any event it is a self assesment unless the revenue has reached an agreement on the specifics with you or in the case of an FREA with your employer/ union etc. If they have told you in writing that a specific item is allowable that is helpful.
The magic words are indeed wholly, necessary and exclusively in connection with your employment. This is likely why the FREA you refer to was reduced from its previous level. A lot of supposed expenses simply fails to satisfy all three requirements. For example a computer ( first time I have heard of this one) for a pilot is rarely necessary, albeit desireable, nor is its use likely to be exclusive in connection with a pilots employment. Sunglasses may be necessary, but they are not exclusive or an employer requirement even if they were to fail the first test. To be allowable they have to pass all the tests.
The revenue has a taken a much harder line in relation to emploment expenses in recent years, no doubt spurred on by the chancellors desire to increase revenue from taxation ?
Last edited by Bealzebub; 24th February 2006 at 20:51.