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Where Taxpayers and Advisers Meet

Claiming the dispensation/exemption via tax return

anupam82
Posts:4
Joined:Thu Apr 10, 2014 8:44 pm
Claiming the dispensation/exemption via tax return

Postby anupam82 » Fri Nov 03, 2017 12:54 pm

Hi,
I'm new to this country and have very less knowledge about the income tax filing and refund.
My employer has a dispensation/exemption of GBP 16000 per year agreed with HMRC for my expenses through House rent, council tax, utilities and transport cost. This is applicable for first one year after I start working in UK.
My employer pass these benefits through payroll for most of the employees. For few employees they are not able to pass the benefits due to some internal policies (Such as submitting the receipts within a time frame before the start of first payroll).

I'm falling among the few employees for whom the benefits are not passed through payroll and my income tax is getting deducted for the exempted amount as well.

I'm trying to understand the following:

1. Will it be possible for me to claim via tax refund the extra tax I'm paying?
2. If yes, what are the forms I need from my employer to claim the same?
3. Is there any possibilities for my employer to adjust the income tax through the next payrolls? I think there will be a change in tax code in that case.

Thanks for your help.
-Anupam

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Claiming the dispensation/exemption via tax return

Postby GlobalTaxAdviser » Fri Nov 03, 2017 5:26 pm

Hi Anupam

Detached Duty Relief or Temporary Work place relief has some condition attached including the fact you must be on assignment for no more than 24 months and that you do you are still part of the foreign company which I presume in your case is India ?

Often the employer benefits hugely from this relief as well so I assume you are considered to be a UK employee ?

I have dealt with this in the past with Indian companies and its always the employer that needs to adjust the payroll for any tax relief as in theory they are reimbursing you for Rent, subsistence etc.

You need to find out why your employer has taxed you.

There maybe ways of obtaining other assignment benefits

Kind Regards

GTA

anupam82
Posts:4
Joined:Thu Apr 10, 2014 8:44 pm

Re: Claiming the dispensation/exemption via tax return

Postby anupam82 » Fri Nov 03, 2017 6:36 pm

Hi GTA,

Thanks for your reply.

You have correctly stated, I'm a part of Indian company and currently treated as a UK employee.

I checked with my employer and they have mentioned, if they are not able to pass the benefits in the first payroll, they won't be able to do it via payroll for the entire financial year. The reason for not passing in via payroll is, I could not submit the receipts of the expenses within the time frame. I'm really not sure why they cannot pass the benefits in next payrolls. :-(

Not sure if they can adjust those in P60 in order to allow me to claim the refund.

Thanks,
Anupam

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Claiming the dispensation/exemption via tax return

Postby GlobalTaxAdviser » Sun Nov 05, 2017 11:11 pm

Hi Anupam

Do you have an Indian or UK employment contact?

Is your remuneration broken down into Salary, Travel, Accommodation etc

Kind Regards

GTA


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