claiming expenses in employment

claiming expenses in employment

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Client is a medical doctor employed by the NHS in plastic surgery.

He wishes to claim for the cost of surgical loupes £3000, various items of CPD which he has self funded and his car.

He states that the NHS do not provide any kind of loupes for him to use in opeations but it would be impossible for him to conduct his operations without the loupes.

Furthermore, although he is allowed 2 weeks paid leave to take his CPD, the NHS do pay the costs. He has to pay them. If he did not undertake his CPD he would not be allowed to continue on his profession.

He lives at some distance from the main hospital where he works so travels there by car. He is often required to travel from that hospital to other locations to conduct the duties of his employment. Sometimes he travels directly from his home to those "other" locations. The car is not used for any other purpose at all as he is a keen cyclist. He cycles everywhere else.

I have asked to see his contract of employment but that has not arrived with me yet.

He believes the contract does NOT contain any requirements for him to buy his own surgical equipement (but there is tacet acceptance in the profession and the NHS that this will be done) and neither does it make any reference to costs of CPD or use of own car in the employment.

Assuming the contract contains no such help what are the views of you all as regards the calims he wishes to make under s336 ITEPA 2003  for the loupes, CPD costs and car expenses?

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By Ernest N Dever
20th Jul 2011 13:08

My best offer's 45p a mile

I'll start with the CPD, because the treatment of the surgical loupes then follows.  There have been a whole host of NHS training expenses cases, all of which have failed, bar one, Banerjee, which I think is going on to the Supreme Court.

HMRC have always argued that the training expenditure isn't incurred in the performance of the duties of the employment, but to put the employee in the position of being able to carry out/continue the employment.  They'd always won prior to Banarjee.

Banerjee's facts are particular (but similar to an earlier case where HMRC won), in that she was specifically in a training post, such that training was a duty of her employment. (See http://www.bailii.org/ew/cases/EWCA/Civ/2010/843.html).

If your client carries out any private work, he could consider operating through a limited company, that would employ him and could pay for the CPD.  The company would get tax relief and the training would be an exempt benefit under the work-related training provisions.

The surgical loupes fall to be similarly treated, I think.  They are essentially a capital item (if they're what I think they are), and their purchase wasn't incurred in the performance of his duties, but to put your client in a position to be able to carry out those duties.  Employees can't claim capital allowances any more.

Again, if there's any private work, there may be scope for obtaining relief elsewhere.  I'd imagine there being a private sector demand for plastic surgery.

With regard to the motor expenses, his journey from home to the hospital is private travel (unless he is travelling in an emergency and has been contacted and has given medical instruction prior to the journey - Pook v Owen).  All other travel is business travel and he can claim mileage allowance relief of 45p per mile, like any other employee of any other employer.  He can also claim for any expenditure he incurs on parking/tolls, etc.

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By taxinfo
20th Jul 2011 16:29

Thanks Ernest

Thank you for your thoughts. More or less what was in my mind. I wondered if I was overlooking anything.

I have been mindful of the history of these CPD-type cases for a long time now such as the Special Comissionsers' decision in Consultant Psychiatrist v HMRC SpC 557, [20061 STC (SCD) 653 so have already warned the client that it is unlikely relief would be granted for the CPD costs.

Unfortunately the client doesn't carry out any other work so has no opportunity to make claims via that route.

 

As ususal, the client has indicated that all his colleagues claim all these expenses sucessfully. I have explained that this may be because the claims are made on their Tax Returns and simply not picked up (yet) by HMRC.

I'm still hoping that the contract of employment will stipuate something that will help our cause but I'm not holding my breath........

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By User deleted
20th Jul 2011 22:49

Incorporation?

I have a client who trades as a locum through a company. He passed an HMRC enquiry regarding CPD courses, as they are training provided by the employer to the employee!

He may then be able to claim mileage too, dependant on the specific contract(s)

The company presumably could buy the equipment and claim AIA on it?

 - Not sure how the AWR's might affect this in October, still getting my head round the goobledegook.

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