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Claiming Benefits For PAYE Personnel
It is probably believed by many people that accountants are only useful to the self-employed, Sole traders and Limited company directors. As a recent PAYE client found out, we can also claim for some benefits for PAYE personnel that are usually allowed by HMRC to the Sole Traders and Directors and the most obvious one would be fuel allowance.
Our client Johanna is a carer and whilst this profession our generally paid low wages they also only recover part of the fuel allowance. CAB accounts NW Ltd who are a caring accountant based in Chorley and Bolton offer a unique scheme where we charge 10% of any saving made so if we recover £500 we take £50, £1000 recovered will cost you £100 and if we don’t recover anything then there is no charge.
The maximum a PAYE client can recover in any one tax year is equal to the Tax paid, so you may be entitled to more benefit but HMRC will only allow a claim up to this amount. Clearly if you have paid no tax then there is no claim that can be recovered. The good news is that you can go back 4 years so any claim made before the 31st January 2019 can include the Tax years 2014/15,2015/16,2016/17 and 2017/18.
In Johannas case she had paid tax in excess of £300/year and was able to receive a cheque for nearly £1500, not a bad return for £150. This was because her employer had only paid her 35p/mile whilst HMRC allow 45p/mile for the first 10,000 miles, so you only need to cover 3000 business miles at the 10p difference to recover the £300 tax paid. In the carers case this mileage also includes social mileage.
If you believe that your employer is under paying your expenses why not contact the accountants in Chorley for some free advice. We would initially only need to see your P60s to determine what tax may be recoverable and then we can take it further if you so wish.