Am I Due A Refund?

grey_gym_sock

stewartbond wrote: »

Is my understanding of this true?

no: HMRC won't pay your expenses. they will only allow you to deduct your expenses when calculating your taxable income.

so your taxable income is (exactly as cotswoldaccountant calculated it in post #6) £7,360, and you can reclaim the £1,500 which was deducted.

my calculation in #5 was based on the incorrect assumption that your employer paid you £4,710 expenses as well as £7,500 wages.

it sounds like the employer was rather sneaky about this. however, AFAIK they are not legally obliged to pay these expenses (unless that was part of your contract). though if they did pay the expenses, they couldn't count it as part of the NMW: https://www.gov.uk/government/consultations/the-national-minimum-wage-travel-and-subsistence-expenses-schemes

stewartbond

grey_gym_sock wrote: »

no: HMRC won't pay your expenses. they will only allow you to deduct your expenses when calculating your taxable income.

so your taxable income is (exactly as cotswoldaccountant calculated it in post #6) £7,360, and you can reclaim the £1,500 which was deducted.

my calculation in #5 was based on the incorrect assumption that your employer paid you £4,710 expenses as well as £7,500 wages.

it sounds like the employer was rather sneaky about this. however, AFAIK they are not legally obliged to pay these expenses (unless that was part of your contract). though if they did pay the expenses, they couldn't count it as part of the NMW:

Thanks.
It looks to me that I might be getting a bit ripped off!

As an employee take home for the tax year is 7500 with 4500 expense's owed to me against my taxes.


So If my taxable income for the year is £3895 (£1200 - £8105 (personal allowance)) I need to pay %20 of £3895 = £779.

Now if the petrol allowance is being offset against my taxes = £4710 - £779.

Then am I not still owed £3931?

grey_gym_sock

stewartbond wrote: »

Then am I not still owed £3931?

no: HMRC don't pay your expenses. they only charge tax on your income.

when calculating your income, they let you deduct allowable expenses. if that leaves your income below the personal allowance (as it appears to do in this case), then 0 income tax is due (so you can reclaim any income tax that's been deducted). but you can't pay less than 0 income tax.

stewartbond

I totally understand what your saying. Will this loss be carried over to the next tax year?

cotswoldaccountant

stewartbond wrote: »

I totally understand what your saying. Will this loss be carried over to the next tax year?

No, it will not. The personal allowance is "use it or lose it" - you will start afresh with a new personal allowance in 2013-14, which is £9440.

Now that you see that you do not get paid the mileage expenses by HMRC - you just save tax on the amount of mileage expenses incurred - you can perhaps understand my surprise that your mileage costs were so high compared to your income from that job. In future, if you have to travel a lot to different sites, you would probably wish to negotiate with an employer that they reimburse your travel expenses.

stewartbond

cotswoldaccountant wrote: »

No, it will not. The personal allowance is "use it or lose it" - you will start afresh with a new personal allowance in 2013-14, which is £9440.

Now that you see that you do not get paid the mileage expenses by HMRC - you just save tax on the amount of mileage expenses incurred - you can perhaps understand my surprise that your mileage costs were so high compared to your income from that job. In future, if you have to travel a lot to different sites, you would probably wish to negotiate with an employer that they reimburse your travel expenses.

Thank you, lesson learned.

Caz3121

did your employer make no contribution towards this 10,000+ miles, were you unable to claim any expenses?

John_Pierpoint

I think this "master" needs to be named as a warning to others?

stewartbond

No employer didn't pay anything towards my travel.

Don't want to name and shame TBH. Not a big company about 15 employees.