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Child Benefit..... Should HMRC be including out of pocket expenses as an income

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Hi, We have just contacted the HMRC regarding Child Benifits payments that they are now claiming back from us as according to them my husband was earning over £50k.  Unfortunately for us we did not realise we had to fill in self assessments and are now being chased for monies going back to 2013 so we are going through everything.  
My query is that they have recorded my husbands salary incorrectly over this time.  They have recorded what his Employers have filled in his P60 with his total earnings and then any expenses HMRC have added as additional earnings
So if for instance my husband claimed Expenses of £600 for flights and hotels in a month, HMRC have taken that figure and added it to his monthly salary to give a “total figure”..... this is wrong, expenses are to pay back what he has outlaid himself it is NOT an extra income.....  
Out of pocket expenses should not be included but the guy at HMRC is saying they have to be so this is taking him over the £50k.
Has anyone else experienced this, we are after any advice please,
Many thanks,

Comments

  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 26 February 2020 at 4:41PM
    Did his employer show these expenses on a P11d as a taxable benefit?

    Has your husband completed Tax Returns?
  • Hi, unfortunately I don’t know, he has not received P11d’s.
  • No he has not completed a tax return as he is PAYE and not been asked to.
  • BoGoF said:
    Did his employer show these expenses on a P11d as a taxable benefit?

    Has your husband completed Tax Returns?
    Reimbursed expenses usually aren't taxable and so wouldn't be on a P11d. 
    Did your husband's employer tax the remibursements? 
    You need to work out his adjusted net income: 
    https://www.gov.uk/guidance/adjusted-net-income - which starts with his taxable income which is on his P60. Are the expenses shown anywhere on his P60? 

    IQ
  • doods said:
    Hi, We have just contacted the HMRC regarding Child Benifits payments that they are now claiming back from us as according to them my husband was earning over £50k.  Unfortunately for us we did not realise we had to fill in self assessments and are now being chased for monies going back to 2013 so we are going through everything.  
    My query is that they have recorded my husbands salary incorrectly over this time.  They have recorded what his Employers have filled in his P60 with his total earnings and then any expenses HMRC have added as additional earnings
    So if for instance my husband claimed Expenses of £600 for flights and hotels in a month, HMRC have taken that figure and added it to his monthly salary to give a “total figure”..... this is wrong, expenses are to pay back what he has outlaid himself it is NOT an extra income.....  
    Out of pocket expenses should not be included but the guy at HMRC is saying they have to be so this is taking him over the £50k.
    Has anyone else experienced this, we are after any advice please,
    Many thanks,


    Do you mean HMRC have added something extra to his P60 figures or that his P60 figures include things you believe shouldn't be included?
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