F1771 - Tax relief

[Miserable Old Git]

It’s time for me to complete my tax return.

I seem to remember there was a way in which one could claim back tax for duty journeys (F1771). I have absolutely no idea how to do this. Is there anyone out there who knows if: 1. I can do it and 2. How I do it.

I did manage to find info on the RAFCOM website, it says we can claim tax relief for duty journeys but doesn’t tell one how to do it – help.

All help gratefully accepted

MOG

[BEagle]

You mean that you're actually allowed to make duty journeys in your own vehicle rather than in some diesel heap from MT?? Lucky you!

[Megaton]

I did this some time ago. Only really worthwhile if you have a stack of duty journeys in your own car. Since MT always seem to supply vehicles these days it's unlikely you'll have done enough miles to make it worthwhile. I think I contacted PMA who produced a printout of all applicable claims. Reason for rebate is that MMA is paid net of tax for some reason that I fail to remember.

[Albert on Tour]

While we have an 'allowances' thread on the board, I have a second question.

I'm overdue payment of the LSSA (AT) Bonus by several months. Crewroom experts say that I can claim interest on this delayed payment.

Anyone tried this? How do you go about it?

It would only be a few quid but its the principle of the matter!

[Hydraulic Palm Tree]

The Inland Revenue will allow you claim a tax relief on any miles that you are paid to undertake, as part of your work, if you recieve a benefit (i.e.MMA). This is restricted to a maximum of 40 pence per mile, I think, and the tax relief will therefore be the diffrence between the 40 pence rate and what the Service pays you.

It won't be much, but its better in your pocket than in the IR's coffers.

You need to look at the following document on the IR website for full details. http://www.inlandrevenue.gov.uk/pdfs/ir124.pdf (http://)

HPT

[Yeller_Gait]

There are set rates dependant upon your car engine size. Up to 1500cc it is approx 40p/mile, over 2000cc it is approx 60p/mile. Not worth claiming if your car is < 1500cc.

Assuming you get 20p/mile you can claim tax relief on the difference between 60/40 and 20p/mile, well worth it. Max you can claim for is 4000 miles pa at full rate, and a reduced rate comes into effect after the first 4000. Contact tax office for details and they should supply you with a form that will help you calculate your entitlement. Works out at about 10p/mile tax back if you have a 2000cc + car.

You can also claim back up to 7 years. Handbrake house should be able to supply you with details of all 1771 claims at your current unit at least.

Not allowed to claim for home to duty journeys tho.

[Miserable Old Git]

Thanks for the advice.

For the first time in years I’m able to make duty journeys in my own car, as there is no MT here. However, I have now discovered from the Inland Revenue that as I am currently based overseas and those journeys were made overseas, I have no entitlement to tax relief.

Back to the drawing board

MOG

[Hydraulic Palm Tree]

I can assure you that they are wrong as I claimed whilst based overseas!

Also, you are paying UK tax, subject to UK tax legislation and therefore must be eligible to claim the relief. I suggest that you take the matter further with the IR and to PMA if necessary.

HPT

[European Crash]

As an earlier Pruner commented, you cannot claim tax relief for home to duty runs - additionally, IRD will not support claims for medical, education and sporting runs. Expect Inland Revenue to query a tax relief claim very closely - be prepared to back it up with a print-out available from Admin HQ. Furthermore, tax relief for private mileage claimed by Service personnel may not be supported if you live on base and Service/contract MT is available.

[fj_ruatcoelum]

Whilst not disagreeing with any of the above, hopefully this will clarify the situation... http://www.ir.gov.uk/pdfs/ir124.pdf

It is a leaflet available from the Inland Revenue website which explains the gen on claiming tax relief on motor mileage.

Basically, the Service pays you 21p/mile for Public Transport Rate and 40p/mile for Official Duty rate to use your own wheels.

The taxman says that up to 10,000 miles the AMAP rate is 40p/mile, and 25p/mile thereafter.

For claims submitted on a 1771 (NOT Residence to place of Duty claims!) you should be able to claim the difference between what the taxman says is OK (40p/mile) and what the Service have paid you (21p/mile).

But be prepared to justify every mile. They include a sample vehicle mileage log in the leaflet as a suggestion, but if you can get copies of previously submitted 1771s along with corresponding BACS advice slips you should be OK to claim as these are official records.

But beware- whilst most of us get lots of PTR and little ODR, you could be quids in. But if you do more than 10K miles a year on ODR you will end up with a tax bill from the IR!

If you ring the nice chaps at Ty Glas they will help you out on the phone!

[vascodegama]

MOG

Yes you can claim for journeys made overseas. Whether you are based there or not you must use what IR call the exact method for calculating the costs involved ie receipts for all motoring expenses inc Servicing Insurance etc. When I rang them about a journey from BZN-RAMSTEIN they agreed to accept an estimate but you would need to talk to the Office. Once you use the exact method for any calculation in a year then you are committed to that system for all allowable journeys that year. It is supposed to be because fuel costs vary throughout Europe and the IR rates are based on UK fuel costs. I would not expect handbrake house to help. When I asked for a copy of 1771 journeys a few years ago as a result of one of their newsletters they denied everything. Good Luck.

[Miserable Old Git]

Thank you everyone for the advice.

I’ll try the IR again when I get 5 mins and let you know what they say. I’m not holding my breath though

MOG

[Sloppy Link]

Can't speak for the Senior Service or "The Other One" but us Army types appear to have a bit of an advantage. Due to the system inbuilt mistrust of us, an accurate record is kept of all our travel claims and what they were for. Taxman has always been happy with photo copy of the relevant form. The bit about res to pod is right as this is considered normal daily use but if you are working at a location that is not your normal place of work, you can claim. I have done successfully in the past and plan to do so again.
Next question, a birdie has told me that you can claim tax relief for professional fees (Mess Subscriptions) and for formal functions you are compelled to attend as part of you profession. Anyone got any further info?

[Hydraulic Palm Tree]

Somebody challenged the IR in court about Mess subscriptions and lost. The court decided that they were not professional fees and did not count for tax relief. This was notified in SROs some time ago.

We have had at least one officer on the unit 'opt out' of mess subs; but then again, he is a boring tee-totaller with no real interests; allegedly!

HPT:cool:

[Scud-U-Like]

It always astounds me when I hear of reasonably well paid people scratching around to get tax relief on odds and sods. If we're talking about hundreds of pounds a year, then, fair enough, give the Revenue your best shot. Otherwise, don't be such a tight @rse.

[teeteringhead]

About the only "professional fees" you can get tax relief on are professional bodies, like Royal Aeronautical Society and similar. Mess subs don't work, apparently as not everyone (eg MoD warriors, recruiters etc) has to belong to a mess. That's the answer I heard a while ago anyway......

[Megaton]

I spoke to Ty Glas about this a few years ago. Mess subs, shoe polish, dry cleaning..all inadmissible. Worth a try though ;)