The Tax Man Cometh....

[Al R]

Ah yes, child benefit rules. That was a nasty shock now they want all of that back as I earn just over the threshold.

Thanks Cameron & Co

Wizard,

You can mitigate the impact of that. A personal pension contribution chips away at the income used to work out your child benefit payment, starting at £50k and tapering down to zero assistance at £60k. In effect, it means that if you recover the entire amount of your child benefit via pension contributions, tax relief on those contributions approaches 60%.

Never do something financial just for the tax reasons though. But it helps!

[TheWizard]

Just got off the phone to HMRC and it seems that the Armed Forces Uniform Laundry Allowance (or whatever they are calling it) has been approved and applied already, as my new tax code proves.

Whilst that won't help with the latest SA, it can only be an improvement if the threshold goes up!

The lady on the phone said they hadn't had guidance yet as to whether it will get backdated but I'm not holding my breath on that one!!

Every little helps!

Thanks for all the other snippets of advice to those that replied.

[Professor Plum]

The Wizard,

Do you have any info on the laundry allowance? Is this a new allowance??

Thanks!

[Heathrow Harry]

"A personal pension contribution chips away at the income"

too damn true if you invest with most of the "financial institutions" in the City

[TheWizard]

Originally Posted by Professor Plum

The Wizard,

Do you have any info on the laundry allowance? Is this a new allowance??

Thanks!

PP,

This has been looked into for some years now and it seems that it has finally been implemented.
BBC News - Soldiers to get tax relief for uniform cleaning
*for soldiers read Armed Forces

Don't shoot the messenger!

[Professor Plum]

The wizard,

Thank you!

[TheWizard]

Finally, some good news from HMRC.

https://www.gov.uk/laundry-allowance...try-of-defense

The following annual Flat Rate Expense Allowance (FREA) is due for laundering your uniform:

Royal Navy £80
Army £100
Royal Marines £100
Royal Air Force £100

Every little helps.

[Wensleydale]

....and usually it is the taxman who takes us to the cleaners!

[November4]

According to the example

Sara joins the RAF Other Ranks in November 2013. She will get the FREA for 1 year (2013 to 2014). This will not be reduced even though her service started part-way through a year. No RPS will be paid as there has been no delay in making the repayment. She is a basic rate taxpayer.

2013 to 2014 £100 @ 20% = £20

Total Repayment due £20

So £20 per year if I read it correctly.....every little helps and that is a little!

[Sandy Parts]

ahem - "for 'Soldiers' read Armed Forces"....actually, read 'enlisted only' (not Officer corps) - from the HMRC page:
"Officers and other groups
We are continuing discussions with the Ministry of Defence on laundry expenses for Officers and some other groups with different terms and conditions of employment. "

[Background Noise]

Didn't officers always have a uniform allowance noted on the old (pre JPA) pay statements?

[Tiger_mate]

Did anyone have any joy getting the HTD difference refunded. My Accountant reckons I am due a fair amount for a 23 month assignment but the HMRC are having different (negative) opinions.

[Background Noise]

Good luck with the HTD - I though that was non-deductable. Strangely, so were medical journeys.

Anyway, I hear that ORs (one at least) are getting 6 years backdated tax rebate for uniform this month.

[GW844]

Ref putting the house in the wife's name to make it more tax rfficient. It must be ok as we can follow the SoS for Defence's lead:


Labour targets Hammond's £7m fortune in row over Cabinet tax | Mail Online

[vascodegama]

You can't claim tax-relief on HTD but on (in old money) 1771 journeys. Not sure about medical journeys as different I just put them all together. Also bear in mind you need business cover on your car insurance.

[FFP]

Anyone seen that advert in the RAF News about "claiming back money if you use your own car to drive to work....." Makes it sound like HTD but don't want to waste my time if they are referring to business journeys....

[November4]

What counts as business mileage?

Business mileage is mileage you travel doing your job. It can include travel to a temporary work place but it doesn't include:

• normal travel between home (or anywhere that is not a workplace) and your permanent workplace
• private travel

So does not include HTD or whatever it's called now.

[Biggus]

November4,

See post 11 on this thread.

[A and C]

Expert advice

In tax matters it is always best to get an accountant to deal with these things, even when I was on PAYE my accountant saved me twice what he cost me.

I'm sure that some on tis forum are capable of getting as good a result as my accountant but at what cost ? Hours going over the regulations to save a few quid ?

I think that my leasure time is better spent doing things I enjoy rather than learning to be my own tax accountant.