Uniform tax firm won me £63... then took me to the cleaners for £207
R.P. writes: I drew a sum from my pension last year and was told that although this was taxed at source, I would be due a rebate after the financial year ended. Separately, Uniform Tax Credits contacted me about a possible refund for tax relief due on the cost of laundering my company uniform. I signed up thinking this would be a bit extra and I received refunds totalling £63. I also received more than £700 as a refund of tax overpaid on my pension. This had nothing to do with Uniform Tax Credits, but the company took £207 in fees. YOU were going to get the £700-plus anyway. All Uniform Tax Credits (UTC) did was submit a claim to your tax office that won refunds of £63 – and then it charged you £207, leaving you worse off than if you had never heard of them.
The company’s website promotes services for claiming tax reliefs linked to work clothing. It told you: ‘If you wear a uniform or company T-shirt, polo shirt, etc, at work and wash it yourself then you may be able to claim an allowance against your taxable income.’
There is no mention of other tax reliefs and UTC had no hand in claiming the refund of tax overpaid on your pension. So, I asked Michael Byfield, a director of the Swansea-based company, how he could justify charging £207 for clawing back £63 from the taxman. He told me: ‘We try to offer an efficient and cost-effective service to our customers and we take their satisfaction seriously.’
Including an administration fee, you paid it a total of £220. In the interests of goodwill, Byfield explained, he has refunded this amount to you.
That is an excellent outcome. But here is a little tip. Tax offices do not want to be flooded with receipts for washing powder, or calculations of how much hot water it takes to clean a uniform. Sensibly, Revenue & Customs has for many years operated a flat rate expenses scheme linked to the type of work people do.
This covers any costs involved in buying or cleaning a uniform or protective clothing, or even tools needed for a particular occupation. Your flat rate is £60 a year, which means you do not pay tax on this amount of your pay. Now your tax office has your claim on file, it should be carried forward for as long as you wish.