Tax Investigation

[TheEngineer]

I am currenlty under investigation for 2 years of Self Assesment, for my allowable expenses.

It is come into question that my Professions costs are to high, and may not be allowable.
The osts i have claimed are for University Fees for a Course that i am being part funded for.

I have got 25% funding from my employer and i have to pay the remaining 75%, without going on this course i would not have secured a new job.

I had a verbal with the tax office to say this was ok and have claimed the remainder of the fees as tax relief.

Is this ok?

[taxattack]

This will be difficult - the rules are very strict, and sometimes seem unreasonable. The general rule is that the expenses must be incurred wholly exclusively and necessarily in the performance of the duties of the employment. Each of those words is strictly interpreted. Have a look at: http://www.hmrc.gov.uk/manuals/eimanual/EIM31630.htm on HMRC's website.
A more efficient way to do this - alas it may be too late for you - is by a salary sacrifice. See http://www.hmrc.gov.uk/specialist/salary_sacrifice.htm
Your "verbal" with the tax office - do you have date, time, person you spoke to and at which office?

[wamstax]

I don't think you can have spoken to an appropriate person if they told ou that you could claim for a course to get a better job. Expenses to be allowable have to be wholly exclusively and necessarily incurred for the purposes of your employment. Necessarily is in the sense that EVERY jobholder would have to incur the expenses that you incurred and clearly this is almost impossible to convince anybody that each and every person doing your job WOULD HAVE to incur these expenses. I don't imagine you have the name and extension number and the date & time of your alleged verbal call and even if you have this wont wash too much as you may not have given the full details of the expenses and the circumstances. I think the best solution is to put your hands up and pay the taxes. Anyone else now examining your claim is not bound by another persons review of matters if its not in writing - and even then it is cpableof being reversed in certain circumstances
regards
bill@wamstaxltd.com

[TheEngineer]

Thanks for the Replys

This course is only part funded by the company, so i have to front the rest of the cash myself? with no tax relief?

If so this is out of order, as i need this qualification to do my job. This is not about doing the qualification to get a better job, it is to do my current job.

But in any case the tax relief is only £500 per year so, will start putting all my other expenses through instead then that i have not claimed for and wasnt going to!