Work expenses - tax or benefit?

creme_brulee

Hello everyone,

I have accepted a new job role which means that I need to purchase a travel card at approx £7.5k a year and also have accommodation expenses of £5k a year, my company have offered to cover these for me as part of a package. My question is, what is the best way for this to be paid to me, if it goes in with my normal salary then I will be taxed and won't receive the actual £12.5k that I need to pay for my expenses. Is there a better way for this to be paid or do I need to ask for more to cover the extra tax that will be taken?

thanks everyone

le_loup

Most companies pay expenses following a claim as a separate payment. Nothing to do with salary.
However the expenses need to be for traveling on company business, not commuting. Otherwise they are taxable.

00ec25

if it is not an allowable business expense then it matters not how it is paid to you, the end result is you will get a figure that is net of tax

there are only 2 questions that matter:
will the travel card be used for any commuting at all, even once per year? That makes the whole taxable

what do you mean by "accommodation costs":
- Your employer is paying for you to relocate? (there is a tax free limit for that)
- your employer is paying rent for you to live somewhere other than your existing home?
- your employer is paying lock stock and barrel for you to live in property they own? or you will own?

creme_brulee

00ec25 wrote: »

what do you mean by "accommodation costs":
- Your employer is paying for you to relocate? (there is a tax free limit for that)
- your employer is paying rent for you to live somewhere other than your existing home?
- your employer is paying lock stock and barrel for you to live in property they own? or you will own?

the travel card is for commuting, so I understand this is taxable, the accommodation is for me to stay over a couple of nights a week in a rented room Tues to Friday whilst working and return home at weekends

le_loup

All taxable, I'm afraid.