Tax on compensation - don't want to commit fraud

Wyndham

I hope someone can help me to work out if I need to do something or if I'm committing some sort of tax fraud!

I'm working away from home as a contractor, and claiming the cost of train travel through my umbrella company. The costs are therefore offset against tax, and all this is above board.

However, I've had some bad journeys, and have claimed compensation from train companies. Yesterday I paid in a grand total of £118. Is tax due on this, or does it affect the tax free status of the expenses?

Hope that makes sense?

TheCyclingProgrammer

It's not taxable and it has no bearing on your expense claims.

On a separate note have your umbrella informed you of the changes regarding travel expenses? If you're under any supervision, direction or control then you can no longer claim travel expenses.

http://www.sjdaccountancy.com/our-services/umbrella-companies/budget-2015-travel-expenses

Wyndham

TheCyclingProgrammer wrote: »

It's not taxable and it has no bearing on your expense claims.

On a separate note have your umbrella informed you of the changes regarding travel expenses? If you're under any supervision, direction or control then you can no longer claim travel expenses.

http://www.sjdaccountancy.com/our-services/umbrella-companies/budget-2015-travel-expenses

Thank you, a perfect reply!

I wasn't sure if it was taxable or not, so thank you for clarifying.

And yes, I know about the changes, and my umbrella asked me a few questions about how I organise my work. Based on their advice, I'm fine to still claim. But thank you for checking!