HMRC Tax claim legislation
HMRC rules are complex and their staff refer to their EIM manual to cite legislation. The EIM manual is made up of small sections and examples that then point to further rules and examples until you come back full circle, often feeling more confused than you were to start with.
The EIM Manual
EIM31630 – The general rule for employees’ expenses is just one example of what we’re talking about. It cites legislation along with the actual act of law it’s based on. In total, it refers to 11 other EIMs!
There is nothing new with this legislation, the Act has been around since 2003, is predominantly aimed at PAYE workers but is entirely outdated and does not reflect how our transient workforce or indeed their employers operate today.
Claiming for expenses
HMRC wrongly assume that employers reimburse for all “out of pocket” expenses and that they pay for the training of their staff, but we know that unless you’re lucky enough to work for a large corporation, the chances are that you’ll have some expenses that are not reimbursed.
We know that PAYE tax refund claims are sometimes treated with suspicion so this page is to illustrate that not only is it perfectly legal to claim back work related expenses but also share the HMRC legislation to prove it and dispel any doubt.
We’re officially considered ‘low risk’
In 2013 Bettertax voluntarily underwent a rigorous compliance process by senior HMRC inspectors, to ensure that our procedures fell in line with their very strict rules and this is what their Inspector of Taxes had to say:
We know the legislation inside out
It is our job to understand the legislation, our expertise and experience is part of what you’re paying for. Unfortunately there are some unscrupulous and fraudulent tax agents so you should always be careful about who you choose to work with on your Self-Assessment tax return or PAYE refund claim.