Yet another Tax Form to fill in!! Tax Relief Q.
Yet another Tax Form to fill in!! Tax Relief Q.
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stevieb

Original Poster:

5,253 posts

297 months

Monday 30th April 2007
quotequote all
Well i am starting to collate all of the information together for my tax return for 06/07.

And i have a couple of questions regarding Tax Relief.

1) In Short i am being force to undertake a university course at a 50:50 expeses (company to Empleyee) As it is a base requirement for my job. Can I claim my expense incurred in this course as tax relief? A Similar approach operated for travel expenses and hotel expenses its a 50:50 split.

2) I am doing a far bit of home working recently into the early hours of the morning could i claim a home as office expense? I have worked this out to be between £6 & £9 depending if i include mortage interest (Rent) is included in the calculation.

Thanks in advace

Eric Mc

125,758 posts

295 months

Monday 30th April 2007
quotequote all
The general rule for employees is that, for an expense to be allowable for tax relief, it must have been incurred "wholly, exclusively and necessarilly in the course of your employment".

Regarding your education costs - you say are you being "forced" to undertake these courses by your employer. That would indicate that the courses are a "necessary" part of your employment and on that basis your share of the costs incurred should be claimable.
It does depend on what you mean by "forced" and whether the training is an essential part of your current work duties. Be prepared to argue your case with the Revenue if you do go ahead and make a claim.

Use of Home is also allowable, again, only if the need to work at home is a fundamental part of the job you do. If you do it out of choice, or even out of agreement with your employer, related costs will not be allowable. It must satisfy the "necessarilly" requirement.

If it does, the cost allowed is made up of a number of elements:

Council Tax
Water Charges
Light and Heat Costs
Home and Contents insurance

Mortgage Interest is a touchy point. I had a client's claim for mortgage interest rejected by a Revenue official many years ago. However, it seems that the Revenue may be changing their mind on this point.

stevieb

Original Poster:

5,253 posts

297 months

Monday 30th April 2007
quotequote all
When i mean being forced, it is a requirement of the job that i have this qualification, and that i must complete this to retain my current position, else i will be demoted!

On the home as office would rent be an allowable cost? as I have only purchased a house in january and was in rented for 9 of the months of the tax year?

Edited by stevieb on Monday 30th April 10:56

Eric Mc

125,758 posts

295 months

Monday 30th April 2007
quotequote all
Yes. Rent is allowed as part of the calculation.

Seany88

1,249 posts

250 months

Tuesday 1st May 2007
quotequote all
What is the situation for consultants? i.e. they need to sit down and organise their appointments, generation of contracts etc can you claim a room in the house as an expense?

Eric Mc

125,758 posts

295 months

Tuesday 1st May 2007
quotequote all
No different to any other trading situation.