Tax Return - Tax Deductable Expenses

Hoping that someone might have a vague clue about this before I try to tackle the inland revenue help-line...

Due to becoming a filthy rich landlord (I wish), I've got to fill out a tax return for the 04/05 financial year. Now, if I'm going to have to go to a load of trouble to fill in lots of forms so that Gord knows just how much cash to take off me, I might as well ensure that I get as many deductions as I'm entitled to.

Looking at my P60, I've got £590 tax relief for uniform upkeep, and £50 for regimental subs. I've had a squiz on army and inland revenue websites, and can't find any mention of the uniform upkeep relief - but, as it happens, I've spent rather more than £590 on uniform type stuff over the last year (also spent more than £50 on regimental subs - I take it that only the compulsory subs are eligible for tax relief).

The money I've spent falls into three general categories:

a) Things I needed to buy, which are not available on issue (e.g. bivvi poles)

b) Things I needed to buy, which are available on issue, but were not available for issue to me due to stock shortages etc (e.g. mountain boots)

c) Things I didn't have to buy, but have a purely military use (e.g. new smock, bergan liners, etc)

So... am I limited to the £590 that someone has decided is the average cost of kit for a year? Or, can I claim relief on additional expense incurred in categories (a), (b), and/or (c)?

I went through this with the IR last year. Essentially you get the sum total of nothing in addition to you uniform upkeep allowance. I tried to make a claim but they replied with a very nice letter back with a demand for more money. I will dig out their repy later if need be but their arguement was based on the 'fact' that the MOD provided all the kit I needed. Now you, me and about 100,000 other individuals know this to be complete bo11ocks, but the IR don't agree.

I have now sold my property but for several years I had to jump through the Self assessment form hoop. As long as you are pretty much in the parish and get your return in on time you can blag most of it. What you want is a small loss over the year. If your mortgage is not repayment, but interest only then your full mortgage payments should be deducted. And any agency, legal fees, and correspondance, repairs, bank charges etc. Pissing about with uniform and other minor tax deductions is not really worthwhile. it used to take me about 25 minutes to complete the return, which I would do as soon as I got my annual pay summary through. Then it ios out of the way. I certainly wouldn't bother calculating it myself, let the feckers in the tax office do it. I think the most I had to pay one year was 50 quid. Once you complete a tax return, you get one every year, even if you have sold the property and are not in the higher band. Each year, despite having no income other than my taxed at source Army salary, the btax man still asks for about a tenner!


If it helps,
I keep my return as basic as possible. As Pensionpointer said collate all your expenses, insurance, agency fees, costs to visit the property, phone call costs in relation to the property etc etc, collate your income from the property and let the IR do their job of calculating.
I pay about £80 per anum tax on about £300 profit. A small price for an investment.
I fill the return in online, saves paperwork and is much quicker.

Interestingly, not all repairs are able to be offset, if for instance a wooden window or door requires replacing then it must be replaced with a wooden item not UPVC as this would be classed as an improvement.

A turnover of less than £5000 and the IR will not ask for proof ie receipts.

You may need to check on the interest only type of mortgage as I dont think all of it is elligible to be offset.
There are shedloads of things you can off-set against rental income. For the first year it is worth hiring an accountant [his fees are deductable as well]. Then you will know how to do it for future years. I did that and saved myself a packet.



Hey guys how do you go about getting this uniform upkeep thingy??

Anyone got a number I call or where do I get the form?

OK, because I'm a boring cnut, I've been doing some more digging, and here we go:

You can claim £45 for laundry (bonus!), and it looks like you should be able to claim a full amount for expenses (but probably not for clothing, as that is mainly provided by pusser):

Why you can claim for laundry: ( )
EIM32485 - Other expenses: clothing: the cost of upkeep and replacement of uniform and protective clothing: laundry costs
Where the conditions of EIM32480 are met a deduction can be permitted for the cost of laundering protective clothing or uniforms. The amount of the deduction will depend on the nature of the clothing and the frequency with which it is washed, taking account of any additional direct costs of washing clothing at home.

Some employees are covered by a nationally agreed flat rate expense that includes laundry costs, see EIM32700. A flat rate expense has been negotiated separately for nurses and other health care workers, see EIM67210 and EIM66790. For other employees the amounts set out below may be accepted as a reasonable estimate of the deductible expense.

Year Amount
1998/99 and later years £45
1995/96 to 1997/98 £30
1994/95 and earlier years £25

If the expense is met partly by the employer the amount of the deduction should be restricted, see example EIM32482.

Deduction for a greater amount should not be permitted without adequate evidence of the expenditure actually incurred, see EIM32715.

Why you can claim for actual expenses: ( )
EIM32715 - Other expenses: flat rate expenses: deduction for actual expense
Sections 336 and 367 ITEPA 2003
An employee who is entitled to a flat rate expense deduction under Section 367 ITEPA 2003 may instead request a deduction under Section 336 ITEPA 2003 for the actual expense they incur in any year. If an employee deducts his or her actual expense in one year they are not prevented from deducting the flat rate expense in other years. This is illustrated by example EIM32736.

In practice the most important advantage of a flat rate expense deduction to an employee is that he or she does not need to retain evidence to demonstrate the amount of expenditure they have incurred. Also, the amount of the deduction is calculated to be appropriate for the average employee taking one year with another. So high expenditure in one year may be balanced by low expenditure in another. For this reason many employees do not retain evidence of expenditure and do not request a deduction for their actual expenditure in those years for which it exceeds the flat rate amount.

If an employee does request a deduction for an amount of actual expenditure in excess of the flat rate deduction for any year it should not usually be permitted unless the employee has evidence to demonstrate the amount incurred, see EIM31715.

Why you (probably) can't claim for clothing: ( )
EIM32465 - Other expenses: clothing: specialist clothing
The Courts have recognised that there may be exceptions to the general rule in EIM32455 that the cost of clothing is not deductible.

The rules of Schedule D for computing the profits of a trade contain a similar rule that expenses must be incurred wholly and exclusively for a business purpose. In the Schedule D case of Caillebotte v Quinn (50TC222) Templeman J commented that:

"the cost of protective clothing worn in the course of carrying on a trade will be deductible, because warmth and decency are incidental to the protection necessary to the carrying on of the trade."

In the same way a deduction can be permitted from earnings for the cost of protective clothing, see EIM32470. In the case of Hillyer v Leeke (51TC90) Goulding J recognised that the cost of clothing could be deductible where the clothing is:

"of a special character dictated by the occupation as a matter of physical necessity."

We also accept that specialist clothing can include clothing that is a uniform or part of a uniform, see EIM32475.

A deduction can only be permitted where the employee must provide the specialist clothing at his or her own expense.
If anyone can find a link from where I can download ITEPA 2003 (specifically Sections 336 and 367), I'd be most grateful, as I'd rather not go to a load of nugatory work only to be seen off by the revenue. But, similarly, I'd rather not be put to a load of work so they can work out how much tax to make me pay, then pay more than I should.
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