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Claiming tax relief on GTC sub confusion

Discussion in 'Pay and conditions' started by erm, Jan 26, 2012.

  1. erm

    erm

    I am currently filling out P87 forms (http://www.hmrc.gov.uk/forms/p87.pdf) for the last 6 years to reclaim tax on union subscriptions. (Deadline for 05/06 is 31 Jan 2012, 06/07 is 31 Mar 2012, 07/08 is 5 Apr 2012 so heads-up for anyone else leaving it to the last minute like me...)

    But what about GTC fee? I've searched messages on here and in other places and consensus seems to be that even though compensation for the amount deducted from wages for the GTC fee was received, this compensation would have been taxed so we can still claim that tax back.

    But the form on the GTC website (http://www.gtce.org.uk/documents/publicationpdfs/tax_relief.pdf) states "you may get tax relief for the costs of doing so where you have met these out of your own pocket" which seems to contradict this thinking.

    Also, on the P87 form, surely the 'amount spent' on the fee and the 'amount repaid to you' would just cancel out anyway as there is no way of explaining that the amount repaid was then taxed. So this also seems to contradict the belief that this tax can be reclaimed.

    Can anyone shed any light?
     
  2. jubilee

    jubilee Star commenter

    You do meet the GTC fee cost out of your own pocket. No-one but you sends the GTC their £36-50 (or £33 / £30 in past years).
    The £33 put into you pay is subject to payroll deductions. It doesn't match the GTC fee in the first place and certainly doesn't after 20% or 40% is deducted for tax.
    Even Union magazines are at last providing the information that teachers should be claiming tax relief on the GTC fees paid.
    Once you get the tax back on the amounts you paid out, the GTC fee costs you almost nothing. Fail to claim and it costs you a minimum of £10 if you are a basic rate taxpayer and a minimum of £16-70 if you pay 40% tax.
     

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