1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

off setting against tax

Discussion in 'Supply teaching' started by shalteir, Jul 5, 2011.

  1. Supply teachers are not self-employed, there is very little that can be offset. My principle quotes were for: GTC subs, union subs, and CRB checks. The record keeping is not great, no need for an accountant which will lose you money. Some agencies have pushed their supply into a company status, can't comment too much on that.
  2. I've never offset anything except my GTS subs.
  3. If you get paid through a payroll company (i.e. a separate company that manages the payroll, tax, etc), you get told you can offset mileage or travel expenses, and they automatically offset approx. £15 for every day you work for "subsistence" allowance (or at least my company do).

    You CAN (although I don't) claim for : any clothes specifically and only used for work (PE teachers, and you can get dry cleaning costs too), any pens/pencils etc you only use for work (stickers anyone?), and a bunch of other stuff.

    It works out that you get 1/3 of the cost you claim for back as money you would've never otherwise seen, according to my payroll company. The best bit is that you claim mileage if you travel by bike! It doesn't cost anything!
  4. I guess you have to balance the expenses you get through the payroll company against the actual pay. For instance, if you are LEA registered, you are an employee and don't get expenses like a self-employed person. However you get paid to scale which could be £40 more than the agency is paying.
  5. Anyone can claim for stuff you use solely for work. It's a bit more difficult if you don't get paid through a payroll company, but oh well!

    I know for a fact I was being paid up to £15 a day below the MPS M1 rate for my long-term placement, and add that to the payroll company admin fee/commission charge (which are obligatory as my agencies do not process their own payrolls for some bizarre reason), I will make the best I can out of the situation. I couldn't find any details for LEA supply round here, and in London, I'd have to register with about 6 LEAs based on the work I've done through 2 agencies.

    Sum up: yes you can get expenses, regardless of whether or not you are LEA/agency supply (my mum works, not as supply, through the LEA for SEN as a teacher, and can claim these things), it's just easier if you are agency and paid through a payroll/umbrella company.
  6. if you are dealing directly with the taxman, they are quite critical-mileage, meals don't count. If the school provides resources-books, stationery, the taxman might consider your investment in resources was not strictly essential. You might get pe kit, but not claimed annually. I guess a lot of supply don't claim for every possible thing.
  7. I have had a couple of days paid through payroll companies: one through Key and the other through ISS. In each case, the advantage seemed to be miniscule (a couple of pounds), and hardly worth the bother of photocopying car registration documents to claim mileage allowance, and then sending off receipts from petrol stations. In the case of Key, I think I lost on the deal, given the money I must have spent on phone calls, chasing up what was happening. I have heard that some umbrella companies (FBS, or something like that: they cold-called me) charge a monthly fee, which would not be a good idea if the supply of work is so erratic
  8. BelleDuJour

    BelleDuJour Star commenter

    I've used Key for years and been able to claim mileage and lunch allowances. If I leave before 7am I can also claim breakfast, and if hte day exceeds 10 hours, including travel, I can also claim evening meal.
    In addition to that I've claimed postage when applicable, phone calls, computer consumables (including paper), other stationery and books.
    I tried to claim clothing once when working in a special school and I was required to wear PE kit. The school provided a polo shirt and jacket but no trackie bottoms. I don't own trackie bottoms so bought some, but wasn't allowed to claim on the grounds I could, if i wanted to, wear them at home. I thought this a bit mean as if I wore trackie bottoms at home I'd have owned some!
    I also claimed for a TES training course in London. Strangely they accepted the claim for my train ticket and meals, but refused my claim for the course fee stating it wasn't 100% work related! WFT?
    It's worth claiming whatever you can, but you need to check it all out first. It has most certainly resulted in a much lower tax bill for me, as all these claims are offset against your gross pay, and my P60 for last year showed gross taxable pay around 1/4 of what I had actually earned.
    If you don't use it you lose it!

  9. ISS don't ask for copies of any receipts or car documentation? Only that you have a log book of odometer readings that they can (or the taxman) can peruse if necessary. You get 45p per mile tax relief on petrol, that's 15p a mile extra in your pocket - which for my little car would pretty much pay for the petrol! I say it's worth it. However, travel/mileage and the subsistence allowance (which ISS add anyway) are the only things I add. Helps with maintenance!
  10. Thank you very much for all your info - very helpful
  11. I work for Servoca and paid through an umbrella company ... I claim mileage, lunch and GTC subs.
  12. Anonymous

    Anonymous New commenter

    I wouldn't touch Key with a barge pole. It is basically a tax dodge and if you get investigated, you could be in deep trouble. Have you got receipts for everything you've claimed? Mileage claims don't count, despite what they tell you. As for meals - again, you're not self employed so can't claim those.
    The tax man has a long reach and a long memory.
  13. jubilee

    jubilee Star commenter

    Tax relief on 45p per mile saves you 9p per mile in tax if you pay at BR (20%) and 18p per mile in tax if you are a Higher rate taxpayer (40%).
    Where did you get the 15p per mile calculation from?
  14. ISS state something about a third of the cost back in real-terms extra money? That's where I got it from. I just read it somewhere on their website I think.... *goes and has a look*.... yes it's in the FAQ section. "The approx. cash in hand benefit is 1/3 the value of the claim." And it's 40ppm, I just checked while I was there, and I've been thinking I'm better off for ages, major blonde moment.
  15. jubilee

    jubilee Star commenter

    It can't be a third unless what they're doing is deducting the 40p per mile from your gross pay, to reduce the tax and NI you pay, rather than you claiming tax relief on mileage costs.
    All teachers should be claiming tax relief on the GTC fee and the allowable portion of Union subs and should claim a rebate for the past 6 tax years if they haven't been claiming in the past.
  16. Anonymous

    Anonymous New commenter

    You cannot claim for mileage. You are not self employed - even if you have an umbrella company. You are travelling to your "usual place of work" even if it is for one day. There have been well documented HMRC case studies on this.
    These umbrella companies will not back you up. If you get investigated by HMRC, you will have a full tax investigation.
    You can't claim for meals either. The only thing you can claim for is the GTC fee and NUT subs.
    Sorry, that's it.
    I am self employed as a tutor. I also do supply. I claim a lot for tutoring (mainly mileage) but nothing for supply as the HMRC views mileage as normal commuting. You can't even claim for the home as an office.

  17. BelleDuJour

    BelleDuJour Star commenter

    You are as you are not under contract to anyone. You are counted as a 'site based' worker, mesning you have no one set place of work.
    As for receipts etc, it is Inland Revenue rules that state you can claim up to a certain amount without receipts. That is how it works. The umbrella companies ask you to keep receipts should they wish to do a spot check as the IR often spot checks the umbrella companies. That's all.
    If IR did check your claims, they would not ask to see receipts if you had claimed withing IR's own rules.
    I think you are worrying too much!
  18. You can claim CRBs as well as GTC and union subs. I haven't done this in supply, but I suspect you could claim PE tracksuit too if required.
  19. jubilee

    jubilee Star commenter

    I ranf the Inland Revenue a few years ago and asked if I could claim tax relief on my journeys to different workplaces as a supply teacher. I got a resounding NO from them as they said that any permanent teacher travelling the same distance to a school would also be unable to claim for home to work mileage.
    Agency employers can, though, pay you some travel costs. Years ago when I worked for a private agency they would pay me an extra £5 per day if I went to a school that was 50 miles from my home.
    What I believe agencies are doing now is allocate a part of what should be your daily rate and calling it travel costs. That reduces the amount of pay on which you pay tax and NI and also reduces the amount of employer NI payable (which is why they worked out this number-crunching in the first place!)
    It will work in the teacher's favour if they get enough work as they'll pay less tax and less NI but still pay enough NI to qualify for future state benefits.
    However, the reduction in NI could be disadvantageous for those who don't manage to pay enough NI in a tax year to preserve their future entitlement for JSA etc.
    If paid as an LA supply teacher as I am, the employer can't play about with the figures as you get paid to scale and it's thus clear that the amount paid is simply pay and not pay + travel expenses.

  20. I think you are worrying too much!

    I would pay a bit more attention to your tax affairs if I were you!

    I am an accountant and supply teacher and I would not touch umbrellas (U's) etc with a barge pole.

    The U's dont give a damn about your tax affairs - they will run at the first hint of trouble. All the terms are stacked against you - i.e the U have a contract which puts all the responsibility onto the ST (that includes Employers NIC by the way - so you could end up with an even higher tax bill. Not to mention the penalties and stress that goes with a HMRC enquiry. I have dealt with one or two HMRC enquiries and thay are not pleasant!).

    There has been a lot of discussion regarding this previously. On this forum - do a search you will see links etc to releavant legislation - all the exps you mention are not allowed for STs. STs are not site based temp workers. Each visit to a school is deemed as a contact in its own right - even for 1/2 day. This becomes you perm workplace even for 1/2 day - no exs allowed for perm workplace

    I suspect the U co told you you were a site based worker etc etc.... dont believe them.....U co's are dodgy to say the least.

    I have done a lot of research into this - if you want to you can start with the case of Warner V Prior on HMRC website (supply teacher claiming exs etc...)
    Its a scam - beware.....


Share This Page