Deducting travel expenses

sare_2

Hope someone here can help.

H has been asked to move stores within his company to one 40 miles away.
He would have to go by train, and his manager has said they will increase his salary by the travel costs.
We've worked out that as his earnings will be increased by this amount, that our tax credit entitlement will be reduced by £900.

I looked in the guidance book that came from the TC office, and it says:
"Any expenses which you met from your earnings and which arose wholly, exclusively and necessarily in the course of your work(as well as travelling expenses necessarily incurred in the performance of your duties...If you paid such expenses and were not reimbursed by your employer, deduct the amount of these from your gross pay"

I phoned the tax credit helpline and was told that I couldn't deduct these as they would show on the p60 for that year, and therefore not deductible.
This seems to contradict what is written in their guide.Has anyone any experience or knowledge of this, as I've known shock horror! the helpline to give out the wrong info.
Thanks.

sare_2

Ah nevermind.
Just found something that says ordinary commuting expenses aren't deductible.
Which isn't particularly fair given that we'll be worse off because of it.

firesidemaid

hi there

if he will be travelling daily, can be not get his work to pay (eg. via cheque or warrant) for him an annual train pass/season ticket?

this way it is all above board? as you will not be gaining anything.

robindunne1

The cost of travelling to and from your normal place of work is NOT an allowable deduction for income tax purposes and is therefore NOT an allowable deduction for tax credits.

What they are explaining in the guidance relates to incidental travel away from the normal workplace. For example, if there was a training course at the other end of the country - the employer would be expected to reimburse this cost and it would not be shown on your P60.

You need to understand the distinction between the two. HMRC do not allow normal travel to work as a deduction as it would mean everyone having to fill in their own tax return and keeping receipts for travel they make everyday - resulting in an administrative nightmare.

In this case the travel is not allowable as it is to his normal place of work.

I'm afraid this is yet another example of the poor thought out tax credit system that continually penalises those that try and make something of their career. The sooner it gets changed the better.

robindunne1

sazzacat wrote: »

hi there

if he will be travelling daily, can be not get his work to pay (eg. via cheque or warrant) for him an annual train pass/season ticket?

this way it is all above board? as you will not be gaining anything.

Not really as it is a benefit that is subject to income tax. As it is the cost of travelling to his normal workplace there will be a tax and national insurance implication.