salary with expenses

macbabypam

I get paid monthly and get a petrol allowance in addition to my salary. This is different every month depending upon how many miles I have travelled.

Do I need to inform the OR what my fuel allowance is every month?

I told the OR when we discussed my SOA that my monthly salary coud vary every month by approx £30-£50 and he made no reference to it. I have received an IPA today for the NT tax code that will be applied to my estimated salary by the OR which will last until end of tax year.

TheGardener

The OR will apply the NT code to your gross salary/earnings. The expenses/petrol you claim back are not earnings. The OR should have seen this from your pay slips if the expenses payments are detailed separately (they should be)

Your expenses are taxable anyway so if you are paid the basic HMRC rate of 45p per mile, you are not making any sort of profit (in fact at only 45P per mile, if you include all the other costs of motoring most of us are probably subsidising our employers!)

However, if you are given the allowance regardless of how many miles you do - this would be more like a 'perk' and the OR may have included that in their calculations anyway.

So no, you probably don't need to tell your OR about expenses payments every month - unless they have asked you to. However, if the NT code amount is more than you normally pay in tax, you should check that with your OR.

luvchocolate

Hi expenses are just that they are not taxed and should not be included in you soa.
I had just the same milege paid at 45p per mile my or and trustee saw my pay slips and totally ignored them....good luck

TheGardener

luvchocolate wrote: »

Hi expenses are just that they are not taxed and should not be included in you soa.
I had just the same milege paid at 45p per mile my or and trustee saw my pay slips and totally ignored them....good luck

Unfortunately, expenses are taxed. If your employer has reimbursed you for expenses you incurred in carrying out your job - such as the cost of professional subscriptions, petrol or the use of your home telephone - you will have to pay tax on the payments you have received.

However, it is not taxed in quite the same way as on your basic salary. The expense payments appear in the section on your PAYE Coding Notice called 'Items that reduce your tax-free amount' - under the headings 'Taxable expenses payments' and 'Telephone'.

For the purpose of the OP's question though, the OR would not include the amount on the payslip in an IPA calculation

luvchocolate

Hi...I can only speak for myself...I claim 45p per mile for travel at work and I do not pay tax on this listed as expenses on my pay slip. my o.r and trustee told me they have no claim/interest as these are expenses.
My expenses vary a lot but my tax is always the same...I had a nil tax code and paid my trustee on a standing order the same amount each month.
I hope this helps you poster

TheGardener

My apologies if wrong. I'm not tax expert and was using the advice given on the HMRC website and by our payroll officer. I will check with them again.

luvchocolate

no problem...we are all here to help and support each other x