A large percentage of workers using PAYE have little awareness of what they can claim tax for and how to go about doing it.
(PRWEB UK) 22 January 2013
According to a recent report conducted by Express Tax Claims, thousands of PAYE construction workers are missing out on unclaimed tax because they’re not aware of the claims they can make, unlike their CIS counterparts. Recent changes in legislation have now made it easier for PAYE workers to claim a tax refund if they are working temporarily on a construction site or a building location but many tax payers are still largely unaware of the money they could be missing out on.
Unclaimed Tax Leaving PAYE Workers Caught Short
A large percentage of workers using PAYE have little awareness of what they can claim tax for and how to go about doing it. Financial expert John Dent explained the extent of the problem:
“At present there are too many PAYE workers who don’t understand that they can claim tax for things like travel costs, replacing essential equipment and even the price of buying a sandwich on site. There’s a lot of money simply sitting in the government pot waiting to be claimed.”
According to the HRMC website, PAYE employees working on temporary sites can claim back a percentage of the cost of travelling to and from a site and can also claim for replacing equipment like workboots and hard hats. In addition it’s possible to claim for the cost of accommodation or subsistence whilst working on a site.
“The money is there for the taking,” commented Dent, “the problem is that not enough people know it’s there or understand whether or not they’re eligible to claim. As a general rule of thumb if you’re working temporarily on a site, that is for a period of two years or less, you have the right to claim relief for business mileage, public transport, essential equipment and accommodation, but the majority of workers still aren’t doing this.”
Don’t Miss Out on Unclaimed Tax
A recent publicity drive has helped increase awareness surrounding tax relief but as Dent explained, workers are still being put off making claims for fear that the process will be too complex. However, there are several companies now operating that deal with tax claims on behalf of PAYE workers, which is helping to increase the number of claims being made. John Dean from Express tax Claims explained how his company is helping:
“Tax claims are never fun and for many PAYE workers the thought of filling out endless forms and finding all those backdated receipts just seems like more hassle than it’s worth. We help clients by making claims on their behalf and in many cases claims can be backdated without receipts, so workers who’ve only just found out about their entitlements can make backdated claims much more easily. Our research shows that the majority of the claims we make are accepted, even if we don’t include receipts, which means our clients are getting what they’re entitled to without too much difficulty. We can even submit a simultaneous tax return when we claim on a client’s behalf making it so much easier and more convenient to claim tax.”
Claim Tax Refunds without Receipts
The HRMC website states that claims can be made as of the 2008/09 tax year which means construction and other temporary workers could end up with a hefty tax rebate if they decide to make a claim. Plant Fitter Warren Kirk explained why he’s encouraging co workers to claim the money they are owed.
“I only found out about the tax I was missing out on a couple of years ago and decided to enlist the help of ExpressTaxClaims.co.uk as I hadn’t kept all my receipts. They were extremely helpful and this year I travelled 27 thousand miles and received a £2000 tax rebate, which demonstrates just what I’d be missing out on today if I wasn’t in the know.”
“I would encourage all PAYE construction workers to find out about the money they could be receiving if they don’t want to miss out on amazing tax rebates like the one I received for my transport costs.”
To find out more about tax claims for PAYE workers visit the HRMC website or contact your local citizen’s advice bureau.