Tax Refunds for Duty Journeys
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Tax Refunds for Duty Journeys
I have already claimed a tax rebate for duty journeys in previous years, but does anyone know whether returning home from temporary duty (courses etc) at weekends counts as a duty journey? For those I have been on recently, there has been no requirement to remain on base at the weekends, but accommodation has been available. I received GYH for the length of the course.
Any advice or experiences gratefully received!
(Before anyone suggests an IFA/accountant, the amounts involved aren't big enough to justify it...)
Any advice or experiences gratefully received!
(Before anyone suggests an IFA/accountant, the amounts involved aren't big enough to justify it...)
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It's come up before on here. You should be aware that there is a difference between the MOD/RAF definition of duty travel and the HMRC definition.
Even if you get an answer on here I would seek guidance from the tax office (not SHQ, because, through no fault of their own, they are not the best authority)
Should be able to clarify this via a tax office call centre (or maybe these days doing an online search?)
I claimed £600 back in 96, and 3 years later it was challenged. After a very aggressive investigation, and a mountain of paperwork, I got a stroppy letter saying I had claimed falsely and I had to immediately repay.........£10.
Even if you get an answer on here I would seek guidance from the tax office (not SHQ, because, through no fault of their own, they are not the best authority)
Should be able to clarify this via a tax office call centre (or maybe these days doing an online search?)
I claimed £600 back in 96, and 3 years later it was challenged. After a very aggressive investigation, and a mountain of paperwork, I got a stroppy letter saying I had claimed falsely and I had to immediately repay.........£10.
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Slightly better value than my forced JPA audits on my former Sengo that took me a whole day (£100 per day) and him half a day to prepare (£100), which resulted in the princely sum of 20p being recovered from his wages.
....and Corporate Governance thought that was good value.
....and Corporate Governance thought that was good value.
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The bad bit of this is that whereas you are obliged to keep proof for JPA for 2 years, HMRC can tap your shoulder for 6 years.
This particular case falls into a grey area. You cannot claim any variation of home to duty, and as a rule of thumb, only claim journeys to and from a specific task. However a course on face value is no different from, for example, a symposium or conference. There is an argument that suggests the first journey to and last journey from are fair game but others are because you yourself choose to do them and therefore you pay.
My advise would be to stick with topping up the service journeys only (up to the JMRC rate of 45p/mile ) and avoid the risk associated with GYH. That said, if a claim is wrongly put in in good faith, the worst that can happen is that you pay it back. HMRC may smell a rodent if you are claiming the full 45p per mile. You have of course said you got GYH throughout, but you didnt say that this was as if you remained at home base. I would be careful with that as psf have a get out of jail free card whereas you do not.
I do pay an accountant and he always saves me far more than his bill, and he would check on this if it were my claim before executing the claim. Everything that I have claimed in recent years has been supported by a JPA claim in which evidence of mileage was beyond all doubt. You will not have this if you are not entitled through service means to claim mma.
This particular case falls into a grey area. You cannot claim any variation of home to duty, and as a rule of thumb, only claim journeys to and from a specific task. However a course on face value is no different from, for example, a symposium or conference. There is an argument that suggests the first journey to and last journey from are fair game but others are because you yourself choose to do them and therefore you pay.
My advise would be to stick with topping up the service journeys only (up to the JMRC rate of 45p/mile ) and avoid the risk associated with GYH. That said, if a claim is wrongly put in in good faith, the worst that can happen is that you pay it back. HMRC may smell a rodent if you are claiming the full 45p per mile. You have of course said you got GYH throughout, but you didnt say that this was as if you remained at home base. I would be careful with that as psf have a get out of jail free card whereas you do not.
I do pay an accountant and he always saves me far more than his bill, and he would check on this if it were my claim before executing the claim. Everything that I have claimed in recent years has been supported by a JPA claim in which evidence of mileage was beyond all doubt. You will not have this if you are not entitled through service means to claim mma.
I don't own this space under my name. I should have leased it while I still could
I would claim.
The MOD will have paid you at the lower rate, 26p? for the journey to and back. For that you can claim the difference from HMRC.
For the intervening weekend claim at 45p.
Look at it this way. A civilian will travel to his temporary place of work and back every day or week. There is no presumption that he would remain away from home at a weekend.
Similarly, as a Serviceman within the civilian tax system, you should be treated no differently.
Suppose however you choose to remain at your deployed location and additional subsistence costs arose which were not met by the Service, extra messing for instance, then again you can claim these in the same way that a civilian would do so.
Provided you keep your JPA printout for that magic 6 years then you can counter-challenge HMRC. I was once challenged and responded with a breakdown of my claims. In so doing I noticed I had under-claimed. they graciously (b*ll*cks) conceded my claim was valid but declined to increase my claim
.
non sinas bastardi tere te deorsum
The MOD will have paid you at the lower rate, 26p? for the journey to and back. For that you can claim the difference from HMRC.
For the intervening weekend claim at 45p.
Look at it this way. A civilian will travel to his temporary place of work and back every day or week. There is no presumption that he would remain away from home at a weekend.
Similarly, as a Serviceman within the civilian tax system, you should be treated no differently.
Suppose however you choose to remain at your deployed location and additional subsistence costs arose which were not met by the Service, extra messing for instance, then again you can claim these in the same way that a civilian would do so.
Provided you keep your JPA printout for that magic 6 years then you can counter-challenge HMRC. I was once challenged and responded with a breakdown of my claims. In so doing I noticed I had under-claimed. they graciously (b*ll*cks) conceded my claim was valid but declined to increase my claim
.non sinas bastardi tere te deorsum
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PN
Well intended no doubt but perhaps not great advice. The issue here is whether or not something constitutes a claimable allowance in the eyes of the HMRC.
Whether something is a duty as defined by the MOD is irrelevant, as are comparisons with civvy stuff.
If you saying, claim everything, let HMRC catch you...I'm all for that (it's called an allowable error), but no point in crying when the buggers have you digging back through a mountain of paperwork several years hence and then want their money back.
As to the specific question...I don't know, so I'd call the HMRC to find out.
Well intended no doubt but perhaps not great advice. The issue here is whether or not something constitutes a claimable allowance in the eyes of the HMRC.
Whether something is a duty as defined by the MOD is irrelevant, as are comparisons with civvy stuff.
If you saying, claim everything, let HMRC catch you...I'm all for that (it's called an allowable error), but no point in crying when the buggers have you digging back through a mountain of paperwork several years hence and then want their money back.
As to the specific question...I don't know, so I'd call the HMRC to find out.
I don't own this space under my name. I should have leased it while I still could
Steve leaves home and heads to the office. After working there for an hour, he leaves to see a customer. In doing so, he catches a train and pays a fare of £15.00.
The amount that Steve can claim is £15.00.
The types of expenses that can be claimed under this category are as follows:
Travel costs, for example, train tickets, air or train fares.
The cost of using your own car, but only if your employer paid you less for doing so than the HMRC Approved Mileage Allowance Payments.
Accommodation and meals when you were away on business.
Let us assume that this temporary place of work is commutable from home, but accommodation is available. MOD would pay for the one return journey but you might chose to drive daily:
Then there is the 24-month rule:
Lucy is employed as a computer consultant. She works full-time at a site for 18 months developing the new computer system. The work is then extended a further 18 months at the same workplace, for the roll-out of the new system. The roll-out is subject to a separate contract between the employer and the client.
A deduction is due for the full cost of travelling to the site for the whole of the first 18 month contract but no deduction is due for the cost of travelling during any part of the second 18 month contract.
After the first 18 months the expectation changes.
In the latter case, if you were on a course and chose to commute then you can claim the extra not covered by HTD or whatever it is called now. Say the course is an OCU course and at the end you are posted to a sqn on that unit then it is likely to exceed 24 months and your claims would cease.
I contend that any work associated travel is claimable regardless of whether the MOD pays you anything.
The amount that Steve can claim is £15.00.
The types of expenses that can be claimed under this category are as follows:
Travel costs, for example, train tickets, air or train fares.
The cost of using your own car, but only if your employer paid you less for doing so than the HMRC Approved Mileage Allowance Payments.
Accommodation and meals when you were away on business.
Let us assume that this temporary place of work is commutable from home, but accommodation is available. MOD would pay for the one return journey but you might chose to drive daily:
Then there is the 24-month rule:
Lucy is employed as a computer consultant. She works full-time at a site for 18 months developing the new computer system. The work is then extended a further 18 months at the same workplace, for the roll-out of the new system. The roll-out is subject to a separate contract between the employer and the client.
A deduction is due for the full cost of travelling to the site for the whole of the first 18 month contract but no deduction is due for the cost of travelling during any part of the second 18 month contract.
After the first 18 months the expectation changes.
In the latter case, if you were on a course and chose to commute then you can claim the extra not covered by HTD or whatever it is called now. Say the course is an OCU course and at the end you are posted to a sqn on that unit then it is likely to exceed 24 months and your claims would cease.
I contend that any work associated travel is claimable regardless of whether the MOD pays you anything.
Last edited by Pontius Navigator; 23rd Mar 2013 at 14:34.
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This particular case falls into a grey area. You cannot claim any variation of home to duty, and as a rule of thumb, only claim journeys to and from a specific task. However a course on face value is no different from, for example, a symposium or conference. There is an argument that suggests the first journey to and last journey from are fair game but others are because you yourself choose to do them and therefore you pay.
*delete according to colour of cloth!
Can anyone who understands this with a degree of detail drop me a PM? I'd like to figure out what elements of travel costs I can claim for during a short posting away from home, if any.
