Guide to claiming your full tax relief
A survey in 2014 found that more than seven out of ten nurses were failing to claim tax relief on their annual registration fees, and that 50% were unaware that they were eligible to claim. This guide aims to ensure you are not one of those who is missing out
Most people are aware of the concept of tax refunds – you move to a new job, get taxed on an emergency tax code for a few weeks and later get that extra tax refunded by HMRC (Her Majesty’s Revenue and Customs) once they have sorted out how much tax you are supposed to be paying. That is often the extent of most people’s knowledge of tax refunds. However, there are also instances in which you can claim a tax refund if you have been left out of pocket by any work-related expenses you have paid. Or laundered your own uniform. Or clocked up any business miles. These business expenses form the basis in which you can claim tax relief and as a nurse, there are a number of areas in which you could be entitled to claim tax relief through a tax refund. So, settle back and let us explain how you could be entitled to claim a tax refund by explaining the various areas of tax relief that apply to nursing professionals.
PROFESSIONAL SUBSCRIPTIONS
HMRC allows you to claim tax relief on the cost of any professional subscriptions you might pay for, so long as ‘you must have membership to do your job or it’s helpful for your work’. This means that you can claim tax relief on your registration fees to the Nursing and Midwifery Council (NMC), which could be worth around £24 per year (or £48 per year if you are a higher-rate taxpayer).
Similarly, you are able to claim tax relief on the subscriptions you pay to the Royal College of Nursing (RCN). How much you can claim will depend on the level of subscription you pay, as well as whether you are a standard or higher rate taxpayer, but nurses could be able to claim between £39 and £78 per year, with Health Care Assistants being able to claim tax relief of £20 to £40.
Of course, you might also be a member of other professional organisations depending on the kind of nursing you do. The only stipulation is that it must be on HMRC’s list of approved professional organisations and learned societies. The list is not easy to use, so it may be worth checking with the organisation to which you belong, and they will also be able to advise you of the amount of tax relief you can claim on the cost of your subscription fees.
UNION FEES
As well as subscription fees to professional bodies, you are also able to claim tax relief on your union fees. So, if you are a member of a union such as Unison, you would be able to claim tax relief on the subs you pay to your union. As with your professional subscription fees, how much you can claim will depend on the level of fees you pay as well as how much tax you pay, but you could be eligible to claim between £35 and £70 per year.
PROFESSIONAL INDEMNITY INSURANCE
All nurses are required by law to have adequate professional indemnity cover as a condition of their NMC registration. Some will have this provided by their GP employer but others will have to top up their cover. The good news is that you are also able to claim tax relief on those subscriptions. This means that you could claim tax relief at 20% to 40% of the cost of your insurance premiums, depending on whether you are a standard or higher-rate taxpayer.
BUSINESS MILEAGE
If for any reason you are expected to travel to a temporary workplace, you can claim Mileage Allowance Relief on the mileage you clock up. For HMRC’s purposes, a temporary workplace is a workplace other than your usual workplace, which you are required to attend for less than 24 months. You may also be able to claim mileage if you drive to home visits or nursing homes, for example. HMRC’s current mileage rates are 45p per mile up to the first 10,000 and then 25p per mile above that. If your employer pays something towards your mileage costs but not the full HMRC amount, you are entitled to claim the difference.
Unfortunately, you cannot claim this allowance for your usual daily commute to work.
UNIFORM TAX RELIEF
If you are required to wear a uniform to do your job (and you most likely do as a nurse), you are entitled to claim a flat-rate tax relief allowance on the costs of laundering and repairing your uniform. HMRC sets flat-rate allowances for this tax relief, depending on occupation, and for nurses this could be worth between £25 and £50 per year. Additionally, if you are obliged to wear certain comfortable shoes or tights to do your job, you can claim an additional allowance for these – which may only be £6 to £12 per tax year but these little allowances can all add up.
HOW TO CLAIM A REFUND
Not only do all these little amounts add up, but you can also backdate your claim for up to four years if you haven’t previously claimed your full tax relief. You might also be eligible for other tax reliefs such as Marriage Tax Allowance, which can also be backdated if you haven’t previously claimed. To claim a tax refund, you need to complete HMRC form P87 – you can either fill this in online or download and print. All you need to do if you are backdating a claim for previous years, is to fill in a form for that tax year – so for example, if you want to backdate for years 2015-16 and 2016-17, you will need to fill in a separate form for each year.
However, if you are pushed for time or haven’t got the energy for more forms after a hard day at work, you can use the services of a tax rebate specialist company, who can ensure you are claiming your full tax relief. Tax rebate companies do tend to charge a fee for their services, which is usually a percentage of the total tax refund, although they will usually offer additional services for that fee – such as protecting you from HMRC enquiries or, in the case of DSR Tax Claims, offering you an advance on your tax refund so you don’t have to wait until the end of the tax year.
If you are worried that you are taking money away from vital public services, such as the NHS, by claiming a tax refund rest assured that this is money that you are entitled to by law – the Government’s taxation legislation is designed to ensure that you’re not left out of pocket by doing your job and tax relief is the method HMRC uses to get your money back to you.
DSR Tax Claims is a firm of tax rebate specialists, serving clients in many different occupations across the country, who are tax preparation experts specialising in identifying potential allowable expenses for tax rebates for clients. Its specialist team can help employees and self-employed subcontractors with all relevant paperwork to ensure their claim is handled in an accurate and efficient manner.
For more about DSR Tax Claims, visit https://dsrtaxclaims.co.uk/