TAX Relief on Bond when leaving?
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Join Date: Mar 2003
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TAX Relief on Bond when leaving?
Can anyone help
I am about to leave my job but I still have about a £5000 bond to repay to my airline. The bond was not a loan taken out by me, but one of the old fashioned agreements, where I pay if I leave.
Does anyone know if I can claim tax back on this? If so how did you do it, what did you have to say to the taxman? I have a friend in the same position, he rang the tax man and he said NO!!
Any help appreciated! Why should we pay tax on this money, as we have allready paid tax on it when we earnt it in the first place!!
Happy landings
I am about to leave my job but I still have about a £5000 bond to repay to my airline. The bond was not a loan taken out by me, but one of the old fashioned agreements, where I pay if I leave.
Does anyone know if I can claim tax back on this? If so how did you do it, what did you have to say to the taxman? I have a friend in the same position, he rang the tax man and he said NO!!
Any help appreciated! Why should we pay tax on this money, as we have allready paid tax on it when we earnt it in the first place!!
Happy landings
Join Date: Dec 2002
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Hi, I was also in the same postion. Employer told me that i was entitled to a tax refund. Got a letter from the tax man this morning ''Unfortunately i can not allow you to have tax releif for the payment you made to **** for the training bond, as this is not a cost incurred, in performance of your duties.''
Oh well
Oh well
More pertinantly, you will find that the company almost certainly claimed tax relief on the cost of your training at corporate tax rates when they trained you. As a result, it is not refundable to you!
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Can they provide a breakdown of the detailed costs of the bond, and where the £5k comes from for specifics, as I believe it is otherwise illegal and not refundable?
I cannot see how it can be tax deductible as it is not a loan to a company, nor is it a bond in the financial sense (as in a traded debt instrument).
I cannot see how it can be tax deductible as it is not a loan to a company, nor is it a bond in the financial sense (as in a traded debt instrument).
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Join Date: Mar 2003
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Yes, They can break it down and I am more than happy to pay it. I spoke to BALPA today and they put me onto a Taxation specialist, very helpful man. Unfortuantly as the law stands the answer is no..... But Balpa is taking a test case to the TAX man and if it is sucessful there may be hope for us all. I was told to keep all of my documentation, because if they were sucessful, then I would be able to claim a rebate!
Cheers.
Cheers.
