Self Assessment PAYE - Child Benefit

windd38

Hi

I am just in the process of registering for Self Assessment so I can cover the current tax year for Child Benefit. I am not sure yet whether I will be under or over the 50k threshold.

I have a basic salary and a fixed monthly payment of car allowance to drive my own car (not company provided) and then a variable bonus.

I get mileage at below the 45p rate and I get expenses to pay for what I have incurred exactly e.g. hotel £80 - company pay me back £80.

Do I include the salary, car allowance and bonus as income?
Do I declare the expenses on a Self Assessment even if they just cover what I have spent?

I am not looking forward to this process it looks complicated!

Thanks for any help.

Lovelyjoolz

windd38 wrote: »

Hi


Do I include the salary, car allowance and bonus as income? Yes
Do I declare the expenses on a Self Assessment even if they just cover what I have spent? Yes

I am not looking forward to this process it looks complicated!

Don't fret too much about it - the Self Assesment form is so straightforward and simple to follow!

nomunnofun

Lovelyjoolz wrote: »

Don't fret too much about it - the Self Assesment form is so straightforward and simple to follow!

I would certainly not be including reimbursed expenses e.g. hotel £80

Presumably an expenses claim has been submitted to the employer and reimbursed accordingly with no profit element. Why would this be regarded as income?

gkerr4

as above - the self assesment form is fairly easy to follow.

you can ignore the hotel type expenses - these are not taxable and can be ignored - its' just business expenses.

the mileage is more significant as this could have an effect on your threshold for the child benefit charge.

for example - lets say you earn £56k - but you pay £4k into a pension so your taxable reduces to £52k

if you travel 10,000 business miles then HMRC say this cost you £4,500 - i.e. 45p/mile

if your employer only paid you 20p / mile - i.e. £2,000 then you have £2500 unpaid expense which you can state in your return - this reduces your taxable to £49,500 and hey presto - you're not paying the child benefit charge!