Bond Payments, can you claim tax relief?
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Join Date: Nov 2001
Location: England
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Bond Payments, can you claim tax relief?
I am due to leave my present company soon and still has seven months worth of training bond left to pay. Has anyone had any experience of trying to offset bond repayments against future tax liabilities?
The local tax office didn’t have a clue and BALPA still haven’t got back to me, leaving me none the wiser.
PS sorry the topic is a little boring!
Cheers BronzeAge
The local tax office didn’t have a clue and BALPA still haven’t got back to me, leaving me none the wiser.
PS sorry the topic is a little boring!
Cheers BronzeAge
Join Date: May 2000
Location: Surrey
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At the moment tax relief is not due on bonds. I tried and got the money paid but then lost it after the IR looked into it further.
BALPA are looking for a test case to contest the present situation as they believe that tax relief should be due. There was an article in 'The Log' last year which stated there are 2 avenues to go down when stating a claim. Look thro' your back copies or contact BALPA if you can't find the said article. I have been assured that BALPA are on the case and something will be done sooner rather than later.
Hope this helps.
BALPA are looking for a test case to contest the present situation as they believe that tax relief should be due. There was an article in 'The Log' last year which stated there are 2 avenues to go down when stating a claim. Look thro' your back copies or contact BALPA if you can't find the said article. I have been assured that BALPA are on the case and something will be done sooner rather than later.
Hope this helps.
Join Date: Jan 2001
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I did get Tax Relief on my Bond.
HOWEVER, this was done on the 1st year of SA. On leaving the company I asked firstly for the bond amount to be deducted from my remaining salary - savings for me and the company (NI). TFD came the reply.
So next I demanded a VAT receipt for the sum. If you research the rules for VAT, for a VAT registered company there are only specific things they charge for that are exempt - and bonds aren't one of them. So they were obliged to:
1. Provide me with a VAT receipt for "something" - they called it "New Hire Training".
2. Pay 17.5% of the Bond to the VAT man.
I then just entered the bond amount into the "Job Expense" box of the SA form. The nice Taxman sent me 40% of the amount as a cheque (since my PAYE was out by this amount), and never questioned the figure etc.
This was back in 1996 - the system is "self assessment", and I felt the rules could be interepreted to allow this relief. Had the taxman challenged me, with the reciept I felt there was no way he could prosecute - just disagree and "reassess" me.
NoD
HOWEVER, this was done on the 1st year of SA. On leaving the company I asked firstly for the bond amount to be deducted from my remaining salary - savings for me and the company (NI). TFD came the reply.
So next I demanded a VAT receipt for the sum. If you research the rules for VAT, for a VAT registered company there are only specific things they charge for that are exempt - and bonds aren't one of them. So they were obliged to:
1. Provide me with a VAT receipt for "something" - they called it "New Hire Training".
2. Pay 17.5% of the Bond to the VAT man.
I then just entered the bond amount into the "Job Expense" box of the SA form. The nice Taxman sent me 40% of the amount as a cheque (since my PAYE was out by this amount), and never questioned the figure etc.
This was back in 1996 - the system is "self assessment", and I felt the rules could be interepreted to allow this relief. Had the taxman challenged me, with the reciept I felt there was no way he could prosecute - just disagree and "reassess" me.
NoD
