travel allowance and tax

stcyrus

Hi .
hopefully someone can help .
I work away from home on a two on two off rota .
I get an allowance to cover travel and hotel expenses which i inccur when i travekl to the point of departure which is based on three bands depending how far away from the airport you live .
For a number of years this was on my opay slip as a separate entry and i did not get taxed on this .Now it has being included into my annual salary and is therefore taxed .is is allowable and is it reclaimable
any advice great appriciated
regards

jimmo

Only your employer knows why they seem to have suddenly decided that what they used to pay you without deduction of tax now has to be taxed. Maybe you should ask them.

I think that the most likely explanation is that an audit has picked up that they were doing it wrong and they have had to mend their ways.

The only other thing I can think of is that you are an Offshore oil and gas worker. If so this may explain things.

http://www.hmrc.gov.uk/manuals/eimanual/EIM67195.htm