Tax credits and work expenses we're worse off

Fizzylizzy

Hi all can anyone please help with our current tax credits situation
Last year my husband was transferred to a new place of work due to redundancies at former place of employment. His new job entails traveling around. he has to use our car for the traveling and claims back the expenses at end of month.
Here lies the problem that I cannot understand. These expenses amount to approx £150-£180 per month depending on miles done it appears that these expenses are being applied to his pay prior to deductions and now due to this our tax credits have dropped by £100 per month so we're worse off that we were last year
Can anyone enlighten me to wether this sounds legit because I really don't see how it is I thought expenses where non taxable and also disregarded for tax credit claims.
Many thanks in advance.

Icequeen99

Fizzylizzy wrote: »

Hi all can anyone please help with our current tax credits situation
Last year my husband was transferred to a new place of work due to redundancies at former place of employment. His new job entails traveling around. he has to use our car for the traveling and claims back the expenses at end of month.
Here lies the problem that I cannot understand. These expenses amount to approx £150-£180 per month depending on miles done it appears that these expenses are being applied to his pay prior to deductions and now due to this our tax credits have dropped by £100 per month so we're worse off that we were last year
Can anyone enlighten me to wether this sounds legit because I really don't see how it is I thought expenses where non taxable and also disregarded for tax credit claims.
Many thanks in advance.

Does he claim an amount per mile? How much?

Are they actually taxing them?

IQ

Fizzylizzy

Hi yes he claims 25p per mile and Yep seems so as the figure is included in taxable gross pay.

elsien

My current and previous employers both paid mileage as a separate payment to the salary with no tax deducted, and a separate remittance form. I'd query it.

Fizzylizzy

elsien wrote: »

My current and previous employers both paid mileage as a separate payment to the salary with no tax deducted, and a separate remittance form. I'd query it.

My hubby has just rang payroll as cpl years ago when at old location any expenses were paid separate however they reckon it's all correct as rules have changed and it gets paid via salary and taxed !!
Anyone kno if I he can claim tax rebate on this and also how do I prove to tax credits that the amount is expenses claimed back and not salary and wether they will disregard this ? It may not seem much to some but £100 a month drop is a big big deal to us 😞

Icequeen99

Fizzylizzy wrote: »

My hubby has just rang payroll as cpl years ago when at old location any expenses were paid separate however they reckon it's all correct as rules have changed and it gets paid via salary and taxed !!
Anyone kno if I he can claim tax rebate on this and also how do I prove to tax credits that the amount is expenses claimed back and not salary and wether they will disregard this ? It may not seem much to some but £100 a month drop is a big big deal to us 😞

Yes he can claim a tax rebate - he would claim 45p a mile for that.

Also for tax credits, you can deduct the mileage. When you get your renewals pack there is a working sheet, if you follow it you can deduct the mileage figure.

IQ

densol_2

Any travel between home and permanent place of work is classed as commuting and a taxable benefit. Mileage from the permanent place of work to other business places are not taxable up to the HMRC approved rates 45/25p mile. You need to check if they are adding on a notional amount to cover the " commuter " journey which is taxable or if they are paying it all pre deduction and taxing the lot as that is incorrect. Often when people are redeployed the company agree to pay commuter travel for three years if the journey from home is increased as part of the deal

Fizzylizzy

Icequeen99 wrote: »

Yes he can claim a tax rebate - he would claim 45p a mile for that.

Also for tax credits, you can deduct the mileage. When you get your renewals pack there is a working sheet, if you follow it you can deduct the mileage figure.

IQ

We don't recieve a renewal pack as they automatically do it now am still awaiting the letter to explains the drop in tax credits !
Do I ring tax credits and tell them to send a form out ?

NYM

Fizzylizzy wrote: »

We don't recieve a renewal pack as they automatically do it now am still awaiting the letter to explains the drop in tax credits !
Do I ring tax credits and tell them to send a form out ?

I believe this is the form you'd need to complete. P 87

Fizzylizzy

densol wrote: »

Any travel between home and permanent place of work is classed as commuting and a taxable benefit. Mileage from the permanent place of work to other business places are not taxable up to the HMRC approved rates 45/25p mile. You need to check if they are adding on a notional amount to cover the " commuter " journey which is taxable or if they are paying it all pre deduction and taxing the lot as that is incorrect. Often when people are redeployed the company agree to pay commuter travel for three years if the journey from home is increased as part of the deal

Hi yes part of the expenses are redeployment commuter mileage but the whole lot is defo being applied pre deduction and taxed. Does he need to separate these if so how do we prove this as its all claimed and paid together on his pay at same rate ?

Fizzylizzy

NYM wrote: »

I believe this is the form you'd need to complete. P 87

Thank you I will get on to them x