are work allowed to tax me on my expenses

jamespir

not sure if this is the right place i work for a company who pay my expenses travel lunch stationary etc but i have noticed that they always put it with my hrs and hen im taxed (heavily) for it is this right cause other comapnys ive worked for all expenses were extras and was told non taxable can somone shed some light on this

lesley1960

They shouldnt be taxable , it should be listed separately and set up on their system to be non taxable . have you spoken to them ? , they might have made a mistake in setting it up

jamespir

ipay slip is set out like this example
expenses £120 taxable amount 367
38hrs @6.50= 247
total 367 tax = £120
ni = 14.68
wages paid to bacs 231
so basiocally im not getting any of my expenses at al i know im on br rate at the mo but thats ridiculous

fengirl_2

You need to query this with them.

tattoed_bum

hi Was on the phone yesterday to hmrc about the same thing and the said yes it is taxable as you only get tax relief on expenses you dont actually get the full expense amount basically you only get 20% of your expenses

fengirl_2

if you are claiming tax relief for something, then, yes, you do only get 20% as that is the amount of tax you will have paid. However, certain expenses should not be taxed in the forst place and should be queried with the employer.

lesley1960

tattoed_bum wrote: »

hi Was on the phone yesterday to hmrc about the same thing and the said yes it is taxable as you only get tax relief on expenses you dont actually get the full expense amount basically you only get 20% of your expenses

we pay our drivers night out allowance , that is tax free , we could pay them a higher amount which would then be taxed ( not sure of the figure but its laid out somewhere )

if they were to purchase something for the company , i.e fuel ./ maps ect we woul reimburse them either in cash or through their wages , again tax free .........


I think Hmrc were talking about expense allowances , not expenses incurred

trevormax

I think it would depend on the expenses.

If the travel is just from your home to your normal place of work and back then this is taxable. The only time it is not taxable if it is travel to a temporary workplace.

Paying for your lunch is not taxable when you are away from the office (i.e. at a temporary workplace, on a training event out of the office or staying in a hotel for the night to allow you to work away from the office). Also if you are going to a temporary workplace there are daily amounts you can claim for food. If you are just at your normal workplace and they are paying for your lunch then this is a taxable benefit.

For expenses to be tax free, they must be incurred wholly, exclusively and necessarily in the performance of your duties.

Just noticed how high your tax is in your example. If you were on BR, you would not be paying so much tax. @ 20% you would only pay £73 tax on £367 wages and at higher rate 40% you would pay £146 which is too much for it to be the case. Is it possible you are on a K code?

jamespir

trevormax wrote: »

I think it would depend on the expenses.

If the travel is just from your home to your normal place of work and back then this is taxable. The only time it is not taxable if it is travel to a temporary workplace.

Paying for your lunch is not taxable when you are away from the office (i.e. at a temporary workplace, on a training event out of the office or staying in a hotel for the night to allow you to work away from the office). Also if you are going to a temporary workplace there are daily amounts you can claim for food. If you are just at your normal workplace and they are paying for your lunch then this is a taxable benefit.

For expenses to be tax free, they must be incurred wholly, exclusively and necessarily in the performance of your duties.

Just noticed how high your tax is in your example. If you were on BR, you would not be paying so much tax. @ 20% you would only pay £73 tax on £367 wages and at higher rate 40% you would pay £146 which is too much for it to be the case. Is it possible you are on a K code?

i have to travel to other stores ion different towns i dont have a set store so my workplace varies week to wek with regards to the example it wa just an example but i have been paying tax at rate br

Intergalactic_Floozie

The only expenses that I claim is mileage and we have two columns one for taxable, one for non taxable.

I was told if I need to claim mileage on a working day, then it's non-taxable, but if I claim on a non-working day, it is taxable. Don't know why the difference ?

trevormax

jamespir wrote: »

i have to travel to other stores ion different towns i dont have a set store so my workplace varies week to wek with regards to the example it wa just an example but i have been paying tax at rate br

If you have no permanent work place, then yes your travel expenses and a few other expenses shouldn't be taxable.

On average, is there one location you spend more than 40% of your time?

If so, is this location expected to be where you will spend more than 40% of your time for longer than 24 months? (expected being the important word as if it is expected, HMRC will class it as permanent)

If you answer yes to the above question then that place will likely be classed as your permanent work place and travel expenses to that place will be taxable.