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Fuel Allowance

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Good Morning Everyone

I will try to make this as clear as possible....I returned to work January 2015 after Maternity Leave and was advised that my office had moved 20 miles away. I'm fine with the travel and work currently provides an allowance. In year 1 they will give 100%, year 2 is 50% and then year 3 is 0%

what I want to know is, is the fuel allowance classed as income? and should I be getting taxed on it? It appears on each payslip and it has added so far around £2k on what I would class my wage to be, which means my NIC and Tax deductions are quite a bit more than what I thought they would be?

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