Chancellor of the Exchequer George Osborne announced last week that the rate of tax-free personal allowance is set to rise to £10,600 in 2015/16, £10,800 in 2016/17 and £11,000 in 2017/18. This is welcome news to millions of UK taxpayers, guaranteeing more tax-free – and hopefully – more disposable income.
How changes to personal allowance affect you
According to HMRC’s own website, these new measures are designed “to make work pay and ensure families keep more of the money they earn”. I’m sure most of us will agree that once all deductions and bills have been paid, there isn’t a great deal left of one’s pay packet at the end of the month, so any increase to the amount we can earn before we start paying tax can only be good news.
If you’re employed and have to pay for work-related expenses yourself, you could also claim an expenses tax rebate and reduce the amount of income tax you pay. Employees in many occupations have to pay for their own equipment or use their own vehicle to visit clients or multiple sites or venues, without receiving any – or little – reimbursement from their employer.
Employees who fall in one of the categories below should urgently get in touch with us as the chances are they could qualify for a substantial tax rebate:
- A mechanic or vehicle technician and you buy your own tools for work
- A domiciliary carer, a district nurse, a community nurse or a midwife and you visit patients and use your own vehicle
- Employed by the NHS and wash your own uniform
- A teacher and incur costs necessary to your job and that are not reimbursed by your employer(purchasing PE kits; computers / laptops; using your own vehicle to travel to training grounds or other venues)
- A sales rep who has to visit clients and attend meetings while using your own vehicle
- A construction site manager and you travel from site to site in your own vehicle
- About to leave the UK for at least 3 months (or you’ve already left) and you do not plan to return to the UK until the end of the current tax yeark
- A professional athlete and you’re on loan or/and you have to buy specialised equipment or/and travel to away matches and do not get refunded by your club
This is by no means a substantial list. Very often employees who may qualify for an expenses tax rebate are not even aware of it. If you’re employed and you think you may be paying too much tax, contact us for a free confidential chat.