A bit confused with some of the comments above.
Why are some of you saying it’s not really worth it because of the tax and insurance you have to pay on the £60.
The £60 is tax and insurance is free.
It’s a tax and insurance free allowance that is added to your personal allowance
Example
£10500 personal allowance
£60 uniform allowance
£10560 yearly tax free amount
That gives you a tax code of 1056L
Which means it’s tax and insurance free
You only pay tax and insurance on what you earn over £10560.
Please correct me if I’m wrong but that is what I was always made to believe?
As I understand it lizard your spot on, you will earn an extra £60 before tax and NI is taken so therefore the tax and NI portion is in your pocket that would have been deducted before.
Basically an increase in your tax code allows you to earn more before paying tax.
OLDSALVO:
This is the letter format just fill in the blanks as I did 3 weeks latter cheque for £240…thank you very much…
Dear Inland Revenue
RE: Expenses Allowance
I have been employed at Company Name, Location since (Date of Starting at Employment). I am obliged to launder the uniform, which is supplied to me by the company. I therefore wish to claim an expenses allowance of £■■ for each year since the above date.
Yours Faithfully
Your Name
Your Tax code
Do you apply once or twice if you’ve been TUPE’d?
I have 7 years overall service, 4 with the original company and 3 with the new company. Is it just one application?
Forgot to add: I’m long-term sick with cancer, been off work for 9 months, is it even worth applying?
lizard:
A bit confused with some of the comments above.
Why are some of you saying it’s not really worth it because of the tax and insurance you have to pay on the £60.
The £60 is tax and insurance is free.
It’s a tax and insurance free allowance that is added to your personal allowance
Example
£10500 personal allowance
£60 uniform allowance
£10560 yearly tax free amount
That gives you a tax code of 1056L
Which means it’s tax and insurance free
You only pay tax and insurance on what you earn over £10560.
Please correct me if I’m wrong but that is what I was always made to believe?
Sent from Platform 9 3/4
I’ll be the first to admit I am useless when it comes to tax and figures.
I understand you can earn and extra 60 quid a year basic flat rate per year by claiming it. However as I understood it you don’t get 60 back a year just you can earn and extra 60 a year that you don’t have to pay tax and no contributions on. The tax as mentioned on that 60 is somewhere upward of 20% of that 60 quid so that’s is what I thought you actually got back.
I could be wrong but that is how I thought I understood it. But as I said stuff like that confuses the crap out of me.
National Insurance thresholds have nothing at all to do with your tax code. If they apply this uniform cleaning allowance and increase your tax code by 6 (i.e. they allow you to earn an extra £60 each year before you pay tax) then it will reduce the amount of income tax you pay by 20% of £60, which is £12 per year (assuming basic rate taxpayer). That is a whole £1 per month (but every little helps, of course). It will have no effect at all on the amount of National Insurance that you pay.
If you get this allowance and they backdate it (which they normally do) they will only go back the current tax year and the previous 6 years. So, depending on when you claim you might get as much as £84 (£12 x 7) as a rebate. You won’t get a cheque for £240.
OLDSALVO:
This is the letter format just fill in the blanks as I did 3 weeks latter cheque for £240…thank you very much…
Dear Inland Revenue
RE: Expenses Allowance
I have been employed at Company Name, Location since (Date of Starting at Employment). I am obliged to launder the uniform, which is supplied to me by the company. I therefore wish to claim an expenses allowance of £■■ for each year since the above date.
Yours Faithfully
Your Name
Your Tax code
Do you apply once or twice if you’ve been TUPE’d?
I have 7 years overall service, 4 with the original company and 3 with the new company. Is it just one application?
Forgot to add: I’m long-term sick with cancer, been off work for 9 months, is it even worth applying?
You just need to add a few words to explain how the name of your employer changed when you were TUPE’d over. One application will suffice.
Roymondo:
National Insurance thresholds have nothing at all to do with your tax code. If they apply this uniform cleaning allowance and increase your tax code by 6 (i.e. they allow you to earn an extra £60 each year before you pay tax) then it will reduce the amount of income tax you pay by 20% of £60, which is £12 per year (assuming basic rate taxpayer). That is a whole £1 per month (but every little helps, of course). It will have no effect at all on the amount of National Insurance that you pay.
If you get this allowance and they backdate it (which they normally do) they will only go back the current tax year and the previous 6 years. So, depending on when you claim you might get as much as £84 (£12 x 7) as a rebate. You won’t get a cheque for £240.
That’s how I understood it I. E your better off by £12 a year as you have already earnt the £60 in your wages and have paid the £12 tax on it in previous years although I thought it could only be backdated by 3 years but I stand to be corrected on that length of time.
Roymondo is spot on, I made a mistake in my initial post including National Insurance.
National Insurance is paid at 12% on earnings over £157 a week anyway I believe, so doesn’t come into this.
In my initial excitement to save someone some cash I had a ■■■ before taking my trousers down as it’s known in the trade.
So for the price of a phone call you will save yourselves £12 a year.
No biggy but better than a kick in the bollox with the hidden bonus that you have questioned ‘the system’, a system whereby folks think they are being looked after but in fact you have to question what your told and seek benefits that aren’t advertised.
simcor:
your better off by £12 a year as you have already earnt the £60 in your wages and have paid the £12 tax on it in previous years
That’s not the principle being applied - What they are saying is that each year you spend £60 of your own time/labour/materials/electricity looking after your uniform (a legitimate business expense), so you shouldn’t be paying tax on that £60. It has nothing to do with tax that may or may not have been paid in previous years.
simcor:
your better off by £12 a year as you have already earnt the £60 in your wages and have paid the £12 tax on it in previous years
That’s not the principle being applied - What they are saying is that each year you spend £60 of your own time/labour/materials/electricity looking after your uniform (a legitimate business expense), so you shouldn’t be paying tax on that £60. It has nothing to do with tax that may or may not have been paid in previous years.
What I’m saying is in my case or anyone not claiming it I/we have paid tax on that amount that should have been tax free. So I/we have paid tax on that amount that I/we Intend to claim back. I also get that they will up my/whoever claims tax code by 60 allowing the tax free amount of earnings to be £60 higher so over the year less tax is paid on that tax free amount.
This is an old thread which I searched for when I heard someone in work had done this successfully. I can remember someone on these forums saying that you could claim for work related training? Is that true?
