Taxed on Re-Imbursements?

elizabeth756301

I am currently on a course at work. We are allowed a "food allowance", for which we turn in our receipts at the end of the week for re-imbursement of money. I have found out that my employer pays us back through our monthly wage slip, for which we get TAXED! Again! :mad: Is this correct? Shouldn't "re-imbursement" be paid exact money for money? As it is not "earnings" as such. Can anyone clarify if this situation is correct? You hear of managers going out on meals with clients and the bill is on "expenses". Surely they would not do this if they were out of pocket every time they did it? Thanking you in anticipation.

Weirdlittleman

This is entirely correct.
HMRC will not allow your daily meal to count as expenses simply because it is not expenses of employment. It is a benefit in kind and hence taxable.

Taking clients for lunch or subsistence whilst away from home on work would be an expense.

Count yourself lucky to get this as very few employers pay food/travel allowances for the routine place of work.

Caffca

Is the course actually being held at work i.e. your normal place of work or off-site at another location?

By allowance do you mean you get £X amount per day irrespective of what you spent or as you are submitting receipts, are they actually only paying the out of pocket expense you actually incurred?

If it is a food allowance, yes this will be taxable as you get it irrespective of whether you used all or part of it.

If the course is at your normal place of work and you don't normally get lunch paid for, then yes it's a perk and will be taxable.

If the course is off-site and the company required you to attend and you are only being paid out of pocket expenses for subsistence i.e. no more than what you spent and your employer has a dispensation, they won't be taxable.

Have you had a wage slip yet? Have you checked that the amount listed as taxable on the slip includes your actual expenses? Have you actually checked this with your payroll/hr department?

getmore4less

Just because it through payroll and is on a pay slip does not mean it is taxed.

This is a normal way to pay expenses

All taxable benifts are normaly done through a P11D.

Weirdlittleman

getmore4less wrote: »

Just because it through payroll and is on a pay slip does not mean it is taxed.

This is a normal way to pay expenses

All taxable benifts are normaly done through a P11D.

Yes a P11D is required for taxable benefits. It doesnt stop them being taxed at source as well though.

What the OP describes would likely me liable for tax.

elizabeth756301

Many thanks for all your replies, very informative! Spoke to the wages dept. at work and they assure me that the re-imbursement was NOT taxed. ( Althought they have got things wrong before!) My wage slip does not exactly make it clear. A quick calculation from previous wage slips was needed, but as there are other items on the wage slip (ie bank holiday payments) it makes things rather complicated as not everything is itemised as well as I would like (in laymen terms). Many thanks again for all your replies !

Hammyman

Weirdlittleman wrote: »

This is entirely correct.
HMRC will not allow your daily meal to count as expenses simply because it is not expenses of employment. It is a benefit in kind and hence taxable.

Taking clients for lunch or subsistence whilst away from home on work would be an expense.

Count yourself lucky to get this as very few employers pay food/travel allowances for the routine place of work.

Just to add to this...

It is possible for your employer to have an agreement with the tax office to treat these as not taxable.

As regards your wageslip, it should show amount of taxable pay and amount of pay not taxable.