Why am I taxed on lodge allowance?

chrispr5

I have a salary of £28500 a year and on top of this I recieve £25 a night lodge allowance which i`m taxed on. On speaking to some of the other guys on site they tell me theyre not taxed on there lodge allowance yet there circumstances are no different to mine. Any ideas why this is? I lived with my parents up until march this year when I bought a house with my girlfriend. I have no children.

Thanks

debsy42

Is this link helpful http://www.hmrc.gov.uk/manuals/eimanual/eim71307.htm

AIFOP

Another possibility, as you mention you are 'on site', I assume that you are in the construction industry.

Are you PAYE or CIS?

If CIS, then you may be 'taxed' on lodge if you have net status, extract from CIS340:

Any travelling expenses (including fuel costs) and subsistence
paid to the subcontractor must be included in the gross amount of payment and the amount from which the deduction is made.

chrispr5

still confused I think i`ll just give them a ring tomorow probably just fob me off over the phone.

chrispr5

not sure if i`m paye or cis i`m a civil engineer and classed as staff any idea?

00ec25

chrispr5 wrote: »

not sure if i`m paye or cis i`m a civil engineer and classed as staff any idea?

either your company deducts tax from your pay and you get a payslip which very clearly shows this (hence Pay As You Earn) or you don't and you have to complete your own tax return under the Construction Industry Scheme

simples!

chrispr5

lol sorry yes i get a monthly wage slip which shows my gross pay for tax which includes my lodge allowance