tax free

[Unregistered]

Hi is the trainning allowance tax free or are we ment to have declared it to HMRC annually? i know accomodation allowance is taxible but what about the trainning allowance

[thebrookster]

I assume you are talking about the training allowance for being a cadet?

If so, it is counted as a "Sponsorship" payment, and therefore you do not have to pay tax on it. AFAIK all cadet "wages" (I use quotes here because it strictly is not a wage, as that would be taxable!) are in the form of sponsorship, so as to get around the tax issue. If you were to start having to pay tax, then NI would also become applicable, and this would end up being a big headache for both your training provider (CMT etc) and your sponsoring company, particularly those companies who don't have a UK presence!!

So in answer, no you do not need to declare anything to HMRC, you are fine.

[condeh]

I could have sworn I paid tax on my cadet 'wages'.... but that was a wee while back, so don't take too much from what I say!

[Martyboy]

I payed 36p tax this year and i'm not going to lie..... I was outraged


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[Inland Pirate]

Haha on what?!

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[Midge]

I payed 36p tax this year and i'm not going to lie..... I was outraged


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36p ! Not worth the stamp and paper requesting payment for that! Spent a few hours doing our tax return today, horrid job. Pages and pages of little boxes. Living in well regulated offshore place - ( not a tax haven DC gets upset if its called that and starts asking for more bits of paper or else he seems to feel out of control) you wouldn't think they would ask for so much info.
Out of interest is there sed in the crown dependencies? Don't fancy going through the law to check it out.
I can tell you that bursaries are not taxable in Jersey so parents won't need to worry that they need to put it in under the children in fulltime education box and earnings bit.No doubt the other CD's have their own rules.

[thebrookster]

There is a good reason I pay the ?200 a year to a specialist accounting firm, it means I don't get arrested for committing mass genocide over tax-returns!!

They are quite good so far, leastwise I don't have to pay anything to the taxman this year, and whilst that state of affairs continues I am a happy man!

[GuinnessMan]

There is a good reason I pay the ?200 a year to a specialist accounting firm, it means I don't get arrested for committing mass genocide over tax-returns!!

I think your tax man deserves a knighthood if that's what he (or she) is preventing by doing your tax return....