tax on accomadation

kingy1960

Hope some one can sort this out

I live in manchester but work in lincoln, my employer pays me 30p/mile travelling exp, which i am taxed on as part of my wages, can I claim any rebate on this
plus they have always paid for my accomadation £30 per night(3 nights) direct to the hotel, but now I have received a tax bill for the accomadation is this correct and if so can i claim for any exemption as it would not be possible to travel home after every shift
really confused did not receive any notification of changes from company or tax office
thanks

Any

kingy1960 wrote: »

Hope some one can sort this out

I live in manchester but work in lincoln, my employer pays me 30p/mile travelling exp, which i am taxed on as part of my wages, can I claim any rebate on this

Are you sure about the tax? It would be very unusual...
How is it shown on your payslip? Why do you think you get taxed on it?

kingy1960 wrote: »

plus they have always paid for my accomadation £30 per night(3 nights) direct to the hotel, but now I have received a tax bill for the accomadation is this correct and if so can i claim for any exemption as it would not be possible to travel home after every shift
really confused did not receive any notification of changes from company or tax office
thanks

Call HMRC and tell them that this was incurred wholy for business purposes. They might tell you to put it in writing.
Employer have to report all expenses incurred by the employee unless they have dispensation (exception) in place. If it was incurred wholy for business purposes the employee does not have to pay tax on it, but has to inform HMRC that this is the case.

FatAndy

The general rule is that any mileage incurred travelling from home to your normal place of work is private expense and therefore it sounds right that you're being taxed on your mileage payments.

"The base of operations - a useful pointer in some cases

The cost of travelling from home to place of work is generally disallowed, representing as it does the (private) choice of where to live and that such is separate from the place of work. It does not matter that the taxpayer may at times work at home or keep their business records, materials, tools etc at home. Everyone needs a place to live and the journey from their place of residence to place of work is, at least in part, occasioned by the private choice of where to live. So the journey will have a dual purpose and the cost is not allowable."

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37605.htm


If you're working elsewhere on a temporary basis you would be able to claim tax relief on your mileage claim, i.e. If you are normally based in Manchester but you've been sent to work in Lincoln for a few days then that would be claimable.

"Section 338 ITEPA 2003 allows a deduction for the full cost of travel for necessary attendance. Where employees use their own vehicle or bicycle for business travel a deduction is given at statutory mileage allowance relief rates and not for actual costs, see EIM31626.

Travel for necessary attendance is journeys that employees make to or from a place they have to attend in the performance of their duties, but not journeys that are ordinary commuting or private travel."

http://www.hmrc.gov.uk/manuals/eimanual/EIM32015.htm



I'd guess the same rule would apply to accommodation. Basically from HMRC's point of view if you've chosen to work a long way from home you're well within your rights to do so but they wont contribute to any expenses you incur in doing so.

Any

I misread it - I just assumed it is just temporary workplace... (or OP has home as his office so any travel is for work)...

OP if your place of work in your contract is Lincolm on permanent basis then it is exactly as Andy says..