Non-taxable travel expenses?

Penguin345

My husband has been offered a new position and I have a query about paying tax on expenses, including travel and parking.

The company pay expenses via the normal pay run as a non-taxable payment, however it was my understanding that this would always be taxable? His place of work is flexible, as he works between different sites, and my husband has been told (by a third party) that this is what makes the difference and is why it is not taxed. But is this true?

He will be using his own car, for which he will receive a car allowance, included in his salary (so taxed) and also use train/tube, including parking, to attend his site of work that day.

The last thing I want is to have a tax bill sprung on us for not doing things right!

nicechap

Penguin345 wrote: »

My husband has been offered a new position and I have a query about paying tax on expenses, including travel and parking.

The company pay expenses via the normal pay run as a non-taxable payment, however it was my understanding that this would always be taxable? His place of work is flexible, as he works between different sites, and my husband has been told (by a third party) that this is what makes the difference and is why it is not taxed. But is this true?

He will be using his own car, for which he will receive a car allowance, included in his salary (so taxed) and also use train/tube, including parking, to attend his site of work that day.

The last thing I want is to have a tax bill sprung on us for not doing things right!

Have you spoken to the tax office to find out what the right thing is then?

If you're that worried, maybe deduct the tax the company isn't and place it in a savings account until tax is asked for, might make a nice little bonus if its not needed.


(D+)

bap98189

Expenses are not taxable. This includes train fares, parking and any mileage allowance up to the HMRC limits.

agrinnall

The big question is where is his normal place of work? If he's being paid to travel to that location then that is taxable. Travel to other locations may be OK, although it would depend on where they are in relation to the normal place of work.

Dox

Who is the 'third party' - a qualified accountant or his buddy in the pub?

Useful guide at http://taxaid.org.uk/guides/information/issues-for-employees/employee-expenses/travel-costs