It has been observed among the teacher’s sectors that teachers from the primary and secondary levels spend a big chunk of their money on the equipment and teaching stuff they need to make their job interesting and easy. The books for the classroom and other relevant equipment are a part of this spending normally. Because of this need for equipment and teachers tend to spend their own salary on buying this stuff brings in the discussion about teacher tax rebate.
The discussion generally revolves around the frequently asked question by people. Whether or not spending on the equipment is allowable for the tax rebate. Realising the need based on the queries asked about teacher tax and claiming tax relief, this comprehensive guide will cover the necessary basics about what is teacher tax rebate, what is the eligibility criteria to get the tax relief, is teacher tax relief genuine, and how to claim if I am in a good position to qualify for the tax relief. Let us get further into the discussion to kick start.
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What Refers to a Teacher Tax Rebate?
Being in the role of a teacher in the UK, you are in a good position to be eligible to claim tax relief in a variety of ways. Because there are several expenses that you are knowingly or unknowingly incurring for the purpose of the job. Some common examples of spending your own salary on work are listed:
- The expenses of qualifying for travelling
- Buying equipment like your laptop and computer, this kind of tax relief is rarely approved by the authorities though.
- The journals and books you purchase for your classroom
- The speciality clothing for your job is just like the PE clothes
- The number of fees that you pay for the professional course. Paying the fee of the National education union is considered one of them.
Moreover, when you plan to claim tax relief as a teacher, there is normally an adjustment to your tax code by HMRC. This will end up in your favour because you will have to pay less amount of tax in the end. However, this will only be considered for a period of time until you carry on spending on the job equipment that you need in the class.
What are the Eligibility Criteria to Get Tax Relief?
Once you are done with the awareness of what kind of tax relief can be claimed. Or what is the kind of spending on equipment that will go in your favour in the longer run, you will have to check the eligibility criteria. This will give you a clear insight into whether or not you qualify for the claim of tax relief. Now only employed teachers are allowed to claim tax relief. Even if you are an employee who is in the role of a teacher through an agency, you still can claim tax relief. It is mostly for the things you need for the work, you can claim the cost you spent during the purchase.
In most cases, the accepted way to make a claim is when you have incurred an amount of money on buying a certain thing you needed at work but your employer did not reimburse you, your claim for tax relief will be accepted. In case the money is reimbursed by the employer, there will not be any claim. If the amount of money is partially reimbursed then the way of making the claim should be different than the regular claims.
Moreover, the following criteria must be qualify for the teacher’s tax rebate:
- Your employer has not reimbursed the amount of money you spent on buying the needed equipment.
- You spent money on the cost of buying something that is actually created to work.
- You are a resident of the UK and your earning is more than the personal allowance.
Why are People Doubtful About Teachers’ Tax Rebates Being Genuine or Not?
The set of rules shared by HMRC about the tax and tax relief criteria do not give margin and is known to be strict for people. This ends up in a situation where several teachers do not get their tax relief claim because of the criteria. It is opposite to their expectations. On the other side, HMRC focuses on the expenses that must be purely created for the job purpose. If HMRC finds anything not serving the cause of the job, the cost will not be considered and there will not be any tax relief.
For example, if you are buying books to teach in the classroom on behalf of your school but the cost is not reimbursed by the employer, your tax relief claim will be considered. However, if you are sending on buying books that are related to teaching strategies for yourself, this will not be considered. This is because you are using the books for your own knowledge rather than performing the job.
How can I Claim If I am Eligible for Tax Relief?
Once you have ensured that you are eligible according to the criteria to claim the tax relief, you will require to fill out the P87 form and submit it to the HMRC. You can easily do it online. You can claim for a backdated four years to claim the money you have spent on equipment for the job purpose. Now there is a certain limit to be considered about the cost of equipment. In case the cost you spent on buying the equipment is more than the figure £2,500 in a particular tax year, you can make it a part of the self-assessment tax returns. This will be the most suitable way.
The Bottom Line
Now that you have gathered a fair amount of information about a teacher tax rebate, we can bring the discussion towards wrapping up. The teacher tax rebate is genuine, however, you will have to be considerate about the expenses incurred for the purpose of the job purely. The criteria for accepting the tax relief claim are quite strict.
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Disclaimer: The information about teacher tax rebate is provided in this article including text and graphics. It does not intend to disregard any of the professional advice.
