MORE REFUNDS OF TAX POSSIBLE

Press, Volume CVI, Issue 31340, 10 April 1967, Page 9

MORE REFUNDS OF TAX POSSIBLE

Two new circumstances this year could produce more tax refunds for taxpayers, according to the Inland Revenue Regional Controller (Mr T. M. Hunt). The first is that trade union fees and professional association subscriptions, inincluding the cost of trade and professional journals directly related to the taxpayer’s employment, are deductible by salary and wage earners for the first time. Although the maximum amount that may be claimed is £lO, the deduction is allowable in calculating both income and social security tax. Other allowances are deductible from income tax only. Employees should note that the deduction for these fees is net allowed in calculating P.A.Y.E. deductions, he said. Claims must be made in tax returns after the end of the year.

The second change concerns claims for life insurance premiums paid by the taxpayer during the year. Previously these were deductible only if the life policy was on the taxpayer’s own life. For the year ended March, 1967, claims may ;.lso be made for premiums paid by the taxpayer on policies on the lives of his wife or dependent children. There cannot, of course, be double claims. For instance, if the wife worked during the year she could not make a claim if her husband did so, said Mr Hunt. The maximum combined claim for life insurance premiums and payments into a superannuation fund is £250 for any one taxpayer, if he is a member of a superannuation fund subsidised by his employer; otherwise, the maximum claim is £325. If only £lOO is paid, the deduction is limited to £lOO. “You cannot claim £250 or £325 if you do not pay that much,” he said. There is no allowance for premiums on personal accident policies unless the

premium was paid by August of last year. Mr Hunt also drew attention to the fact that salary qnd wage earners with incomes under £l3OO did not need to send in a tax return to the department unless they had other taxable income besides their wages or salary. The first £3O of the total amount of any interest from savings bank accounts, loans, or other investments is not taxable. Salary and wage earners should use the 1R.5 (green print) return form, including those who have up to £5O taxable income from investments. Otherwise they should use the IR3 (black print) form, he said. It was to the advantage of many wage and salary earners with incomes below £l3OO to send in a return, said Mr Hunt Apart from deductions for union fees and life insurance, claims may be made for charitable donations including church collections, and private school fees. These are all extra allowances not taken into account by the employer in making P.A.Y.E. deductions during the year and they usually result in a tax refund.