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Travel allowance

kimsin
Posts: 6 Forumite


Hi, I currently work picking up, delivering & serving school meals. As I use my own car to pick up the school meals from a different school, I get £12.05 a day from my employer for diesel & the use of my own car, I'm paid for 7 miles i believe. My question is should this travel allowance be included in my total pay for universal credits? I know this may be that my employer needs to report it to hmrc differently, as thats where universal credits get their info from, but before I speak to my employer I need an answer first. I spoke to universal credits who said to ask hmrc, so I spoke to hmrc & they said to ask universal credits. My wages are usually around the £750 per month, but £250-£300 of that are the travel allowance. Should universal credit take into account the whole £700 or just my salary thats only £400?
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I maybe should have said also that the allowance is separate on my wage slip, down as " school meals"0
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It depends on whether or not the payment is taxable. It sounds like it should be, as £12.05 is more than 7 miles x 45p (the approved mileage rate HMRC allow you to be paid tax/ni free). You'd have to be travelling almost 27 miles between schools per day for it to possibly appear otherwise.
So it looks to me like the full £700 should be used for the wages deduction calculation.
What figure are UC using?0 -
Thank you for replying. I think i actually get £12.15 a day, 7 miles @ 45p & £9 a day for something else? The use of my car maybe? I shall have to check with payroll. The whole lot goes through as taxable pay, though I don't earn enough in a year to pay tax. UC use the total ammount for their calculations.0
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kimsin said:Thank you for replying. I think i actually get £12.15 a day, 7 miles @ 45p & £9 a day for something else? The use of my car maybe? I shall have to check with payroll. The whole lot goes through as taxable pay, though I don't earn enough in a year to pay tax. UC use the total ammount for their calculations.
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kimsin said:Thank you for replying. I think i actually get £12.15 a day, 7 miles @ 45p & £9 a day for something else? The use of my car maybe? I shall have to check with payroll. The whole lot goes through as taxable pay, though I don't earn enough in a year to pay tax. UC use the total ammount for their calculations.0
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kimsin said:
My wages are usually around the £750 per month, but £250-£300 of that are the travel allowance. Should universal credit take into account the whole £700 or just my salary thats only £400?0 -
tifo said:kimsin said:
My wages are usually around the £750 per month, but £250-£300 of that are the travel allowance. Should universal credit take into account the whole £700 or just my salary thats only £400?Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.2 -
As you get a cah sum it looks like it comes under this
Round sum allowances
If you provide a set amount of cash for employees regardless of how they spend it, this is known as a ‘round sum allowance’.
This counts as earnings, so you’ll need to:
- add the full amount of the round sum allowance to the employee’s other earnings when deducting and paying Pay As You Earn (PAYE) tax through payroll
- add the amount of the round sum allowance - minus any specific business expenses covered by it - to the employee’s other earnings when deducting and paying Class 1 National Insurance through payroll
https://www.gov.uk/expenses-and-benefits-cash-sum-payments/round-sum-allowances0
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