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Travel Expenses

Hi,

Spurred on by the student finance fiasco I got looking real closely at my income.
On my salary notification I have a list of items called pay and allowance...

Basic pay
Car user allowance
Mileage expenses
On call payment

On the right I have a list of deductions...

PAYE
NI
Pension
Union
Beverage scheme

at the bottom I have a Summary...

Taxable pay
non-taxable pay
total payments
total deductions

Now I have noticed that if I have not incurred any mileage i.e. the Mileage expenses element = Zero pounds the total payment = the rest of the items added up in the pay and allowances section. The non-taxable pay = zero and the taxable pay = total pay less pension.

When I have travelled and incurred mileage for business use then I find a discrepancy in this calculation in that my taxable pay goes up where the pension amount and everything else stays constant? So it appears that I am paying some tax on the business miles I do on behalf of my employer. It's worth mentioning here that according to HMRC the mileage allowance for a car is 45p/mile upto 10,000 miles. My employer currently pays 44p/mile so I can't understand why I get charged the extra tax?

Thanks
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