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Expenses

Wonder if any one could help. I have been speaking with my work for the last three months as they have not been paying tax on my expenses due to a computer error on there behalf. The question i have is, if the HMRC chase for this who is liable to repay the money. I have asked this at my work and they do not want to take the responsibility. Thanks

Comments

  • if you are PAYE then once its sorted it will be deducted from your earnings
  • AnxiousMum
    AnxiousMum Posts: 2,709 Forumite
    Part of the Furniture Combo Breaker
    Since when do you pay tax on expenses? Expenses are a reimbursable expense in the cost of doing your job - I've never paid tax on expenses......they are just that .... 'expenses'....not wages.
  • Red_Cat
    Red_Cat Posts: 1,040 Forumite
    Part of the Furniture Combo Breaker
    Got to agree with Anxious Mum, why do you need to pay tax on expenses? It's not income.
    Hoping this year is better than the last. :)
  • MancBrel
    MancBrel Posts: 223 Forumite
    What are these expenses exactly? Are we talking subsistence or mileage? Unless your rates are so generous that HMRC consider that you are benefiting in some way from them, then I would not expect any tax to be liable? Out of pocket expenses are reimbursements for payments you have made in the line of business from your own pocket, and therefore from money you have previously earned and paid tax on.
  • zagfles
    zagfles Posts: 21,257 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Though the employer has to have a dispensation to pay expenses tax free.

    See http://www.hmrc.gov.uk/paye/exb/schemes/dispensation.htm
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