Claiming tax reflief on business mileage...

jennifernil

Wow....you have one very stingy employer! Expecting you to deduct miles you didn't travel is beyond the pale IMHO. I hope he pays well otherwise!

Working at home may involve YOU incurring extra costs......lighting, heating......and will you need to provide "office" space? How is this to be treated?

pivotalgubbins

jennifernil wrote: »

Wow....you have one very stingy employer! Expecting you to deduct miles you didn't travel is beyond the pale IMHO. I hope he pays well otherwise!

I'm probably a bit more uptight about it than I am letting on, if I am honest.

But he does pay well, by May next year my salary will be 80% higher than it was in September of this (and it is already 40% higher with 20% to kick in at the start of the year - some tiered structure).

jennifernil wrote: »

Working at home may involve YOU incurring extra costs......lighting, heating......and will you need to provide "office" space? How is this to be treated?

To be honest, I'm not sure. Maybe I need to have a discussion with him about that but I am trying not to be too petty! This is the first time I've missed my old 'big' employer - only for the expenses policy I hasten to add!

jennifernil

Ah well, sounds like there are compensations!

As you said, maybe best not to rock the boat.

jimmo

I think the tax aspects of your travelling expenses have probably been settled here but, just a reminder, when you leave, and return home then, for tax purposes, your journey is either normal commuting or a business journey. There is no “half way house”. Either it is allowable in full or it is disallowable in full. Your employer’s policy on travelling expenses clearly differs from the tax rules and will clearly affect whether you get reimbursed in full or claim tax relief for the tax-allowable expenses that your employer does not pay.
When we look at the expenses you incur by working at home, I can see a parallel.
If the terms of your employment are that you are required to work at home then you will be entitled to tax relief for any expenses your incur working at home to the extent that your employer doesn’t reimburse you.
If you are allowed to work at home, as opposed to being required to work at home, then, certainly for tax purposes, any expenses you incur on that are from personal choice rather than obligation and are not allowable for tax purposes.
For tax purposes, employment expenses have to be incurred Wholly, Exclusively and Necessarily in the performance of the duties of the employment.
http://www.hmrc.gov.uk/manuals/eimanual/EIM32760.htm
In principle therefore if your employer pays you anything for working at home that will be taxable unless they fall within the “exempt home working payments“ regime. See the final paragraph in the link above. From memory £3 per week rings a bell.
On non tax matters and therefore a personal opinion , I totally agree with jennifernil that your employer seems to be particularly stingy regarding expenses. However your pay structure appears to be amazing and something not to risk lightly.
If I were you, and was content that I now had a reasonable grip on the tax issues, I would seek further advice on the Employment, Jobseeking and Training forum.