Negotiating salary and using travel expenses as part of package

bobbyboyo

Hi all,

I am starting a new job where the daily travel expenses are a significant part of my outgoings.

I was wondering if it is worth asking my new employer to put this in as part of my remuneration package and reduce my salary by the amount of travel expenses less tax?

Am I right in thinking that this will mean I can be better off whilst leaving the employer no worse off as they can write this off as a tax expense?

Not sure if my thinking is clear on this and a numeric example would be helpful!

Thanks

CLAPTON

what do you mean by travel expenses? do you mean home to work or does your job involve a lot of travelling to client sites.
What is the current expenses arrangements.. how much does he reimburse you for travelling?

bobbyboyo

CLAPTON wrote: »

what do you mean by travel expenses? do you mean home to work or does your job involve a lot of travelling to client sites.
What is the current expenses arrangements.. how much does he reimburse you for travelling?

sorry my bad, not clear. I meant my travel to and from work

kitchen_buff

Did you not consider this before accepting the job?
Are there any negotiations left at this late stage?

bobbyboyo

kitchen_buff wrote: »

Did you not consider this before accepting the job?
Are there any negotiations left at this late stage?

Well its a very small company so I'm sure the boss would be open to the suggestion if it meant they were not left any worse off. My point really is to find out if it can be beneficial to me to direct the commute expenses as part of my remuneration without leaving the company any worse off (due to the fact that they can claim tax relief on the expense whereas I can't).

My thinking may be flawed.

CLAPTON

if your employer pays your commuting costs then the HMRC would consider this a benefit in kind and you would be fully taxed on this in full.

bobbyboyo

CLAPTON wrote: »

if your employer pays your commuting costs then the HMRC would consider this a benefit in kind and you would be fully taxed on this in full.

ahh ok thanks

mrtg0525

Are you travelling by public transport? In that case it may well be worthwhile if they'd consider giving you a season ticket loan (which I don't think falls under 'benefit in kind', but I'm no accountant).

If you're travelling by anything else but public transport I think you've just got to grin and bear it.