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Tax on Expenses

Hi I occasionally work away and get all my hotels and travel booked for me by my employer.  What are the rules on paying tax on any further expenses?  They have been paying me £35 a day but I am getting taxed on this and it shows up as earnings, as I am under the tax thresh hold this could therefore take me over.  The £35 if just for meals?

Comments

  • Andy_L
    Andy_L Posts: 13,151 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 15 July 2022 at 11:47AM
    IF your employer pays a flat rate for meals, rather than receipted actuals, then they either need to agree a rate with HMRC or use HMRC's benchmark rates.

    £35 is over HMRC's rate of £25 so is potentially taxable. I think its just the £10 over rather than the whole amount. (it can also change if your accommodation is B&B/half-board and certain trades have their own specific limits as well)

    Just because it is shown on your pay slip doesn't mean it is being taxed, is it marked as non-taxable or in a different column?
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