BALPA and Tax allowances

[Jetstream Rider]

Have just had dealings with the tax office over an erroneous tax coding letter. While I was on to them I asked (both in writing and on the phone) about tax credits for BALPA subs and they said that was OK. New coding notice has arrived with 'professional subscriptions' as an allowance, for the amount I pay each year in subs.

Saw a question about this a while ago, so hope it answers it.

Don't shoot the messenger if the tax office have screwed up a second time! I actually found their help line very helpful - if you don't mind listening to music and being told you are in a queue.

Also - there is another thread about whether BALPA is worth it or not, lets not degenerate this one, its just a notice for you all that you might be able to squeeze a little more out of the tax man.

J-R

Sometimes the thinking that has got us so far is inadequate to handle the problems of the place our thinking has got us to - Albert Einstein

[Terrain Ahead!]

I think they've made an error in your favour then !

BALPA subs are not supposed to be tax creditable. Had this out in various places many times before.

See the new private BALPA forum at www.balpa.org for current details from Jim McAuslan himself (who ofcourse is ex tax!)

[MaximumPete]

Just make sure you keep all the paperwork as they may change their minds, not tell you, and then try and charge you interest on the "outstanding" amount.

Tax offices vary their interpretation of the rules. The Leicester tax office has been particularly agressive of late.

MP

[A Very Civil Pilot]

My tax code has £171 for professional subscriptions, as agreed with the union. However it costs £350 to join the union!

Good job I self assess to get the rest.

[Jetstream Rider]

Legality?

Thanks for the replies all. Does anyone know the legal bit here? Do I need to tell them that there might be a mistake, or is the letter I sent (clearly stating who the union are) enough to cover me? Along with my letter I sent two P45's and the tax coding notice that was wrong (kept photocopies) - should I have got those back?

Cheers,
J-R

[Blacksheep]

When I paid tax, I was always puzzled as to why I could claim tax relief on union subs but not on my licence fees. The union wasn't compulsory but the licence is.

**************************
through difficulties to the cinema

[Jetstream Rider]

Job expenses

There is also a 'job expenses' allowance of £540 on my coding notice - would that be a licence allowance? It was mentioned by a friend and in my letter, I asked - and I got!

Might be worth a quick query to the tax man.

J-R

[freightdoggy dog]

Jetstream, no it's not for your licence. It is a " TOOL" allowance for your professional trade. I.E, flightbag, uniform cleaning, calculator, etc.etc. Tools that you need to carry out your trade.You will need to keep reciepts, and this allowance is known to be calculated differently from tax office to tax office. I know that the guys out of East Midlands get bugg@r all, whilst the Nigels in Heathrow get £720. Plus it will be restricted to your tax rate. Therefore you will only see 40% of it as dosh for her in doors. Hope that helps!

[Jetstream Rider]

Thanks fd dog, I must admit the whole tax thing is a bit confusing to me. When you say I need to keep receipts, does that mean the allowance is up to a maximum and will be taken away if not 'used'? (ie you don't spend the whole allowance worth).

Cheers,
J-R

[FL245]

Gentlemen,

This has been one thing that has annoyed me about BALPA.

The professional expenses is generally agreed with your company or BALPA and the Inland Revenue. As freightdoggy dog says its for the tools of your job.

The tax relief on your subs is totally different. I like some of you have relief on professional subscriptions, but really should not as the inland revenue state that you must be a member of a professional listed body and BALPA are not listed with the Inland revenue.

I have spoken with BALPA regarding this on many occasions.

Now in their defence, despite their communication on this subject being pants, the inland revenue rules on being approved are quite strict and BALPA are about to lodge an application in the near future.

In the meantime if you are getting relief on your subs, best to keep stum and someting is better than nothing remembering BALPA is not even on the list!

The full list of approved bodies is on the Inland revenue website.

Fl245

[Lazlo]

Jetstream Rider,

If the IR decide that they have made a mistake and shouldn't have given you tax relief on BALPA subscriptions then guess who will have to pay back all that tax relief? You! BALPA subscriptions are not tax deductible. I would tell them before you get yourself into a situation where in a few years they notice their mistake and send you a bill for a hundreds of pounds. It's awful when that happens - I know - they just sent me a bill for almost £2000 because someone keyed in the wrong amount for private medical insurance many years back (and a few other small mistakes that all added up).

You shouldn't need to worry about keeping receipts for your £540 allowance. Receipts are only necessary if you have spent, and claim for expenses in addition to that amount. The £540 is available to everyone regardless of whether you spend it or not.

Hope this helps.

Lazlo

[flyingdutchman]

Further to freightdoggydog's and FL245's posts:


http://www.inlandrevenue.gov.uk/list3/c.htm

Civil Aviation Authority
** For Aircraft Maintenance Engineers, Flight Crews, Air Traffic Controllers, the cost of renewal of licence and associated medical and technical examination fees are allowable. Any local flat-rate expenses arrangement for air crews may (and usually does) include this expense

[741A]

BALPA Subs are NOT allowable!

Hi Jetstream Rider,

I suggest you get this sorted asap. Your BALPA subscriptions are NOT tax deductable and the information from your tax officer is in error. I too claimed and was granted tax relief for my subs to BALPA and received a revised Code. Soon after, this error was spotted by someone else at the Tax office and I received a nasty letter informing me that:

" subscriptions paid to the Britsih Airline Pilots Association are not allowable as a deduction against your emoluments as the association has not been approved by the Inland Revenue under Section 201 Income and Corporation Taxes Act 1988, we are therefore passing your file onto the Compliance Unit where your tax return and this claim will be investigated in detail."

After several months I managed to reverse my claim and got away with a few pounds in interest as a penalty in addition to the tax owed. Not a pleasant experience!

[fcom]

I always claim tax relief on my Balpa subscriptions without any problems and also claim mileage for medicals and trips to the CAA which are not reimbursed by my company.
Every little helps( Tesco 1999)