car park charges

hoganone

hi all ,im a self emolyed carpenter and last week did a job in town where i payed £3 a day parking. anyway got my payslip through and ive paid tax on it , is this right? thanks in advance

Pennywise

If you're self employed how have you got a payslip - payslips are only for employees not self employed. Who prepared the payslip?

hoganone

Wasn't a pay slip as such- just shows what I have been paid - like an invoice style. It was prepared by the co. I did the work for, I get tax payment voucher at end of month.

linlin_3

Your tax deducted will be on gross earnings, but you can claim the car parking charges when you do your accounts, thus reducing your tax.

dunstonh

IIRC, employed cannot claim parking charges but self employed can when incurred as part of the job.

Bossyboots

dunstonh wrote:

IIRC, employed cannot claim parking charges but self employed can when incurred as part of the job.

Employed people would presumably be charging their employer for the parking so they shouldn't need to claim it back from anywhere else.

It is the bit about being taxed on it that I don't understand. If he is self employed and presented an invoice, shouldn't that have been paid in full? Surely the company for whom the job was done should not have deducted anything from it. I know when we send out invoices at work, we don't expect the client to deduct any tax from our parking and travel expenses and indeed, this has never happened.

Elaine_Wilson

Bossyboots wrote:

It is the bit about being taxed on it that I don't understand. If he is self employed and presented an invoice, shouldn't that have been paid in full? Surely the company for whom the job was done should not have deducted anything from it. I know when we send out invoices at work, we don't expect the client to deduct any tax from our parking and travel expenses and indeed, this has never happened.

If the person he was invoicing is a contractor rather than an end consumer then the invoice will have to have 18% tax deducted unless an exemption certificate is held.

My comment to the OP is that the deduction is correct. It is only direct materials which can be paid without deduction of tax.

The parking charges should be entered on the SA form and included in the calculation of tax so relief will be obtained in the end.