Higher rate tax and a sep subsistence question!

No1Alicat

Hi all
I'm employed and based at home for work with a company car as I travel approx 40K miles per year for work. I'm currently comtemplating another job offer or wondering about becoming self employed. These q's are sort of semi-related to my ponderings!
What salary do you have to earn to have to start paying higher rate tax - not including anything else taxable, like a car etc? (For example, if you have a 35K job and no car, do you pay higher rate on any of that, or is the threshold higher?)
If you have a company car, how does that affect where the higher rate tax band kicks in?
Also, I pay all my expenses myself upfront -petrol, train fares, postage etc etc - which runs to around £750+ per month. Please tell me I don't pay tax on that when I'm reimbursed? (I try to put most of them on a good cashback credit card, so I get the cashback and don't pay upfront out of my own pocket IYSWIM - is this the best way to do it?)
Finally - I don't get a subsistence allowance and although I try to take home made sarnies most times, there are times when it's not practical (If I get very delayed unexpectedly, will be on a train with shedloads to carry etc). I object to the fact that it costs me hugely to buy sarnies while I'm on the motorways/public transport etc - can I claim tax relief on subsistence? (I don't self assess, in case that's relevant)
I shall prob be posting again about my ponderings about going self employed - it's a scary thought as a single mum, and I need some good advice and hard fatcs before I'll commit!
Many thanks
Alison
x

No1Alicat

Anyone? :-(

Savvy_Sue

I can't answer all your questions, but no you shouldn't be paying tax when your employer reimburses your expenses. Putting them on a credit card is, IMO, the best way to do it: if you can keep a separate one for work then that can be useful in terms of quickly identifying what's work and what's personal, but it's not essential. How are you reimbursed? If it's by cheque then it's clear you're not being taxed, but if it's added to your salary then your payslip should show what's salary (and therefore subject to tax) and what's expenses (and therefore not). AFAIK your P60 at the end of the year should NOT show your expenses.

As for claiming subsistence, that's between you and your employer. If your employer agrees to pay subsistence then it's usually only for times when you couldn't reasonably get home in time for a meal, not for regular lunches (because you'd have to eat whether you were working or not). My understanding is that when you're self-employed you can't claim subsistence very often, certainly not lunches just for you.

The small biz board people can be quite helpful, but I'd have a read of some of the posts there about going self employed to see if that helps.

Oh, and the HMRC website can be quite useful for finding out about tax bands, or a phone call to your local tax office - they're usually quite helpful.

norfolklass_3

Hi. The higher rate of tax kicks in around £35k and this doesn't change whether or not you have a car. Your car (and fuel benefit, if you get it) is effectively added to your salary (its done by adjustments to your tax code) and the amount of tax you pay is calculated on that total amount. Hope that helps a bit!

No1Alicat

Thank you both.
I shall factor this in during my deliberations!
A. x