Confusion about taxable benefits on self assessment

Dlxke

I'm currently filling out my self assessment for 2017/2018. I have been a contractor from April 2017 until October 2017, and have then been employed full time as an employee by the same company, so have seized my business (as a soletrader) in October.

However, now that I have been an actual employee, I get benefits such as a Food, Gym, and Travel allowance. I essentially send over my receipts for everything at the end of the month and they reimburse me a few weeks later (this does not show up on my payslip).

Other people that are employed by the company and get those same benefits, say they don't think they pay tax on those benefits. However, seeing as I have to submit a self assessment due to having been self employed as a contactor for the first 7 months of this recent tax year, I came across the following questions under the employment section:

Have you received any taxable benefits and expense payments from COMPANY ?

Do you wish to claim any employment expenses or capital allowances while working for COMPANY ?

Do I have to add up all the expenses I have had reimbursed since October and enter them or do I leave them out? I'd without a question just add them in, but seeing as other employees of the company who don't do self assessments due to not having been self employed at all don't seem to enter them anywhere I'm slightly confused.

Thanks in advance for your help, and sorry for asking such simple questions, I just wanna make sure I get this right.

00ec25

what do you mean by "benefit"?
what do you mean by "allowance"

are you claiming actual out of pocket expenses for which you are being reimbursed in full by the company, or are you being given round sum financial contributions towards "stuff"?

please explain:
food? where and why is it being "paid" for you?
gym? open to whom: staff only? staff and paying public? staff and private members only?
travel? to where?

Dlxke

00ec25 wrote: »

what do you mean by "benefit"?
what do you mean by "allowance"

are you claiming actual out of pocket expenses for which you are being reimbursed in full by the company, or are you being given round sum financial contributions towards "stuff"?

please explain:
food? where and why is it being "paid" for you?
gym? open to whom: staff only? staff and paying public? staff and private members only?
travel? to where?

We're essentially told that we can spend up to £10 for food a day. I usually don't spend more than £4-6 on lunch, so I take a photo of the receipt and put it into a report. At the end of the month I send it to our finance guys who approve it and then shortly after the money is put into my account, usually halfway through the month.

Same with the travel "allowance". They are willing to reimburse us for £150, but my travelcard is £153.70 so therefore I pay the full sum out of my own pocket at the time, but will then get £150 of it reimbursed later on. Does that make sense?

So we're allowed to put lunch (to a value up to £10, and only monday to friday) and work related travel (so in my case I just get a travelcard for the month) into the report to claim it back. The gym membership is just anywhere, I go to one very close to my house, get the receipt from them and get reimbursed through my company for the money I paid on the membership.

The reason why, is essentially just because it's a "benefit" of being an employee at the company.

00ec25

Dlxke wrote: »

The reason why, is essentially just because it's a "benefit" of being an employee at the company.

Food eaten where? Whilst you are working at a temporary location? Or food eaten at your normal place of employment? One is an expense, the other is a benefit. Are you paid the £10 or only the cost of the actual receipts you submit, provided they are less than £10?

Travelcard for where? Covers your journey to your normal place of employment? If yes, your employer is paying for your ordinary commuting cost and that is a textbook cut and dried example of a taxable benefit. Doesn't matter if you also use the travelcard for business journeys, as those journeys do not leave you out of pocket since they are "free" as part of your travelcard, which you must pay anyway in order to be able to commute.

The gym is not and can never be a reimbursement of an expense you have incurred in the performance of your duties as an employee, it is simply extra money given to you as "pay" by your employer.

you may find this informative:
https://www.gov.uk/government/publications/480-expenses-and-benefits-a-tax-guide

it sounds very much like you need to sit down with the finance guys and have someone explain how they run the company because those sound like taxable benefits they have to report to HMRC on a P11D form and it is the value from that which you declare on your tax return.

antrobus

Dlxke wrote: »

....
Do I have to add up all the expenses I have had reimbursed since October and enter them or do I leave them out? I'd without a question just add them in, but seeing as other employees of the company who don't do self assessments due to not having been self employed at all don't seem to enter them anywhere I'm slightly confused....

.

No, you wait until your employer gives you a copy of your P11D for 2017/18. It's the employer's job to report taxable benefits to HMRC. All you have to do is pump the same numbers into your SA return. (If any) Since the deadline for P11Ds is 31 May 2018, so you may have to wait a bit. Speak to the payroll department.