Tax Relief on Bond Repayment?
I recently left my employer after two years service. When I joined, I had to take out a loan for £15000 type rating, and then the airline paid into this loan account every month. As I left before the end of the 'bond' period I had to pay the company the outstanding sum of £7500 or continue with the loan.
I elected to pay the loan off. I am now wondering if I can claim the tax back on this repayment. (NB the company payment attracted no tax when it was used to pay off my loan each month). I have now joined another company where I have had to take out a loan and the company repays 1/36th of the capital sum each month (no interest though). Once again no tax is attarcted to this monthly repayment. Shurely some inconsistency.
From the BALPA website:
Q6: Can I claim type rating training expenses?
A: Tax relief for the cost of type rating courses is a contentious issue. In HMRC's view training costs do not attract tax relief as they fail the 'wholly, exclusively and necessarily in the performance of the duties of employment ' test. Their argument is that type rating training is undertaken to put a pilot in a position to carry out his duties and not in the performance of his duties. However, if an employer pays for type training, the costs incurred are not treated as a taxable benefit. This inconsistency of treatment is, in BALPA's view, unacceptable and a matter of ongoing discussion with the Policy Division of HMRC; but don't hold your breath!
I just wonder if anybody out there has had success with claiming the tax back...and if so how they did it. Anybody got any advice...