International drivers hit by U-turn on tax rebates
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• by Melanie Hammond The Inland Hevenue is demanding thousands of pounds back from drivers who were given tax rebates on the grounds that they spent most of their time out of the UK and were therefore non-resident.
Norwich-based accountant David Shawyer says he won refunds for more than 100 drivers totalling more than threequarters of a million pounds, but the Inland Revenue has now changed its mind.
Ashford-based driver Mike Harris applied for his own tax rebate with advice from Inland Revenue representatives. He received a cheque for £11,500 but is now being asked to repay the money—plus interest. He says: "To ask for the money back is outrageous. Unless they want to come and scrape the paint of my walls, l can't repay it."
Last year Commercial Motor reported that drivers who spent fewer than 91 days a year in the UK were exempt from paying income tax on overseas earnings, and that claims could be backdated up to six years( CM1-7 Apri11999).
Shawyer has now written to the Paymaster General to point out that it is not fair or reasonable to claim refunds made in error. He also points out tt cross-Channel ferry workE and oil rig personnel are entitl to exemption, even thou some spend much more time home than the drivers. T United Road Transport Unior also looking into this issue.
Many drivers think that I Inland Revenue was forced take a stricter view as the nu ber of international drive claims began to escalate.
The Inland Revenue accei that it has made mistakes a few cases" but denies tha has made a U-turn on the it applies the law on income 1 to mobile workers.