Any success for tax refund while training?

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hexaflex
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Any success for tax refund while training?

Post by hexaflex » Tue Feb 17, 2015 11:31 pm

I'm not sure if this is discussed anywhere else, but I was wondering whether anyone has been successful in claiming a tax refund from when they were a trainee?

Unite distributed a flyer a couple of months ago after the widening access to training scheme was extended back to 1999. Essentially, HMRC have stated that employed staff also in full-time education are exempt from tax and national insurance up to an annual allowance on earnings of £15,480, whilst in training, provided they meet the following conditions:
The claimant must have been:
1. an existing NHS employee when starting the training scheme (this can be with another NHS organisation)
2. Looking to widen their knowledge
3. in full time attendance at an educational establishment for at least one academic year, and must have attended the course for at least 20 weeks in that academic year. If the course is longer, the employee must attend for at least 20 weeks on average in an academic year over the period of the course.

I think as a trainee these criteria are met and I've looked back at my P60s and was paying tax and NI after £5k, not £15k! I've written to HMRC (I have the address if anyone else wants it). Apparently my application is still being processed but I wondered if anyone else has had success in claiming this back?

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miriam
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Re: Any sucess for tax refund while training?

Post by miriam » Wed Feb 18, 2015 12:09 pm

That would even give me a tax rebate on the last 12 months of my training, so I'd be very interested in knowing the outcome! I know a couple of other people who have also tried to claim, so I will wait and hear what the outcome is and then I'd love to have the details to write myself :)

Ah, not eligible as "If you were on a training course that began prior to September 1999, then you will not be eligible for a refund".
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Loula
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Re: Any sucess for tax refund while training?

Post by Loula » Wed Feb 18, 2015 12:44 pm

Yep, I along with many others would be very interested in this!

It looks like this is in relation to scholarship rules which fall under the piece of tax legislation 'Section 776 ITTOIA 2005'. Unfortunately I can't find the full details of the section via google, but I know my partner definitely had a full copy so I will see if I can dig it out. My partner successfully claimed for a tax rebate approximately 6 years ago under this rule. He was being paid by his employer (a private company) whilst completing his undergrad degree (following a placement year) but not doing any direct work for the employer. Once he became aware of the rule it took him approximately 12 months to claim the tax rebate and I think he was told 'no' about 3 times, despite him clearly meeting all the criteria (he had found the full tax rule and sent highlighted bits in etc) as it appeared that most of the HMRC staff had little knowledge of the rule. Even once he had been paid the refund, he then got a follow-on letter saying he'd underpaid his tax in the claimed years and that they'd like it back. Once again he wrote a letter and they re-adjusted his tax code again. It felt never-ending at the time! My understanding was that this is the same tax rule that applies to PhD students which is why stipends are tax free. I do remember looking at it with respect to CP training, but didn't think it applied to us due to some of the conditions, although I can't remember what they were. Based on my previous experience I would expect any claims to require specific reference to the tax rules to be in with a chance. But if the unions are putting it forward, they may be able to support with this.

I have found this information provided by Unite. It looks like you aren't eligible if you were enrolled in the course prior to September 1999. It also looks like you are not eligible if you had a break in NHS service (which I did of 3 months)

lakeland
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Re: Any sucess for tax refund while training?

Post by lakeland » Wed Feb 18, 2015 2:00 pm

Well this looks potentially amazing! I'll get a letter sent off asap and see what happens! We had some information from our trust about this, but I assumed we weren't elgible as trainees.

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Bubbly
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Re: Any sucess for tax refund while training?

Post by Bubbly » Wed Feb 18, 2015 7:54 pm

Interesting! Do you think it is possible for current and future trainees to get their tax code changed to an annual allowance of 15,480? :D

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BenJMan
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Re: Any sucess for tax refund while training?

Post by BenJMan » Wed Feb 18, 2015 9:34 pm

Yea this is being widely discussed at the moment. Some tales of success emerging from *friends of friends* etc, nothing concrete yet, unless anyone wants to speak up. I wrote my letter the other day, gonna get it sent off and see what they say.

This is the info: http://cmmncte.mass1.com/campaigns/5485 ... iew_online

The point of problem may arise in that the scheme is actually set up for 'widening access' students, which i'm not sure we fit into.
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hexaflex
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Re: Any sucess for tax refund while training?

Post by hexaflex » Sat Feb 21, 2015 11:40 am

I think one issue with it might be that we were employed by the NHS in a training post rather than seconded to university from the NHS. Also I wasn't informed by my employer that I might be eligible, although I'm not working for the same trust as when I trained. But HMRC don't seem that bright, so it's possible that might not understand the difference (they seem a bit dense whenever I've phoned them, but perhaps I've expected them to be more knowledgeable on tax rules :roll: ). I thought it was worth a go. If they award it to one of us, presumably they'll have to award it to all - that's a lot of money!

I think it only applies at this stage to courses from 1999 to March 2013. It wouldn't affect current trainees unless we are successful claiming tax back, then I'm guessing it has implications.

I too have heard of some friends of psychology colleagues being successful but nothing concrete or from direct experience. Fingers crossed.....

hexaflex
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Re: Any sucess for tax refund while training?

Post by hexaflex » Wed Mar 18, 2015 12:06 am

Quick update on this for anyone else who has applied. I phoned HMRC and apparently they have been overwhelmed with applications so have logged all the ones received and are gradually working through them according to date received. It's only a small department and they are struggling with the level of paperwork they've received. They haven't made a decision yet on my application but have indicated it is likely to be a number of months before I'm likely to get a response from them :roll:

I'll keep you updated....

lakeland
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Re: Any sucess for tax refund while training?

Post by lakeland » Wed Mar 18, 2015 9:16 am

Thanks for the update - I submitted mine about a month ago, so I guess I'll just have to hang on a little while longer to see if we're in luck!

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BenJMan
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Re: Any sucess for tax refund while training?

Post by BenJMan » Tue Mar 24, 2015 10:07 pm

Interesting update, thanks :)
I think a hero is any person really intent on making this a better place for all people ~ Maya Angelou.

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enid
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Re: Any sucess for tax refund while training?

Post by enid » Wed Mar 25, 2015 12:55 pm

I wondered about this years and years ago when a friend was talking about applying for clinical training. Good on you for inquiring about this.

Lowri
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Re: Any sucess for tax refund while training?

Post by Lowri » Wed Apr 15, 2015 9:51 pm

I've heard of success from my and another cohort to the tune of about £2000- though apparently this has been different between years. As far as I know, they needed a letter from our HR to confirm employment over the three years (we've graduated).

Unpopular as this is, I am personally pro paying as much tax as possible. I'm lucky, I can - I found the £26,000 of training more then enough for my needs as a single person without dependents, and so I can't justify claiming. If only the £2000 would go towards funding more support workers whd not to bailing out bankers' bad decisions ;)

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Re: Any sucess for tax refund while training?

Post by eponymous85 » Thu Apr 16, 2015 1:42 pm

Ditto, I got a written response saying they've had screeds of applications from NHS employees so it'll take ages to sort out. I figured they are trying to find a way for it not to apply to us so they can reject en masse :roll: didn't lose anything by applying though
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lakeland
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Re: Any sucess for tax refund while training?

Post by lakeland » Sat May 23, 2015 10:15 am

Any updates on this? I sent my letter in Feb and have had nothing to acknowledge that it was even received. Wondering if it's worth a phone call.

Keyser_Soze
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Re: Any sucess for tax refund while training?

Post by Keyser_Soze » Sat May 30, 2015 7:08 pm

I've just submitted an application for a rebate. A friend has just received his, and overall it took about 6 months from start to finish.

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