I’m a company driver PAYE, ive recently had to pay for my CPC periodic training. Can I claim it back off the tax man?
No.
Hahaha nice try
Yes you can claim it back off the tax man, or rather the tax you pay on the equivalent income because it counts as a tax deductible expense. The same applies for medicals, driving license renewals, digi cards, any extra training you pay for as part of your employment which your employer doesn’t cover.
You need to complete a P87 Expenses in Employment. If you’re a basic rate tax payer you’ll get back 20% of what you claim for providing you’ve earned enough over the personal tax free allowance at least equivalent to what you’re claiming.
HMRC’s stated position is that companies who pay for their employees’ periodic CPC training can set that expense against their profits, and that (genuinely) self-employed drivers can also claim for such expenses provided they are maintaining existing skills/qualifications (i.e. not acquiring new ones). Employed drivers however cannot claim as the expense is not incurred “wholly, exclusively and necessarily in the performance of their duties”.
This does seem inconsistent and grossly unfair for employee drivers.
If it is tax allowable for employers, why not for employees who have to pay for it themselves? What is the difference between an employer and employee claiming the tax break?
ORC:
This does seem inconsistent and grossly unfair for employee drivers.If it is tax allowable for employers, why not for employees who have to pay for it themselves? What is the difference between an employer and employee claiming the tax break?
Why is the employer not paying for the training if it is “wholly necessarily and exclusively” for the performance of that employee’s duties?
It is also unfair that an employed driver, who pays for their own, can’t claim the 20% vat back which others can.
It’s all the wrong way round though, no-one should be claiming anything back and drivers whose employer provides DCPC should be taxed as a benefit in kind like a company car - ie they are essentially getting a tax free gift of something they would otherwise have to pay for themselves from their after tax wages.
Unfortunately, it was all down to panic at implementation that not enough drivers would be trained it time that meant they foolishly allowed this complete subversion of the normal tax rules.
How odd that employed drivers, unfortunate enough to work for second rate companies where not only do they have to fund the cost of DCPC but also attend in unpaid time, can’t claim the tax back.
Years ago i asked for and received from the local inland revenue office a reasonable annual allowance for such things as the buying maps, boots, work clothes, cleaning of overalls etc, and apart from a short period of around 12 months self employed, years after this allowance was granted, i have always been on PAYE.