Help! - Taxing my expenses

CeePeeBee

Hi Guys

Hoping you can help. I've always incurred expenses at the various companies I've worked for over the last 15 years or so. I moved companies in April of last year, and up until a recent promotion this month, I haven't really checked my payslip properly. I noticed that my business mileage (paid at under the AMAP) and expenses incurred during client business/entertainment is being taxed.

Please tell me I'm not going a little loopy and that this should not be the case. I know for sure in my other companies this was never taxed. The VAT on receipts was claimed back by the company, but expenses and mileage were not taxed.

Please can you confirm nothing has changed that would impact that?

BoGoF

Depends on what your job actually entails. What 'business mileage' are you actually incurring? What do the expenses relate to?

Hoenir

What form does the client entertaining take?

CeePeeBee

Hoenir said:

What form does the client entertaining take?

When I'm incurring business mileage my job entails visiting clients and engaging in meetings.

Expenses wise, this could be business lunches with clients, etc

As I say, no other company has ever taxed these expenses; I've paid out the cash on behalf of the company, I'm not getting income, I'm being reimbursed! Also, the money is coming out of my pocket (not a company CC or anything...hence the expense part)

BoGoF

Seems you need to talk to your payroll dept.

Maybe your employer has payrolled benefits in kind and leaving it up to you to make a claim to HMRC that the expenses were incurred wholly, exclusively etc in the performance of your duties. That said if they were content that the mileage was genuine business mileage then there would be no need to treat as a BIK if within AMAP rates.

Hoenir

CeePeeBee said:

Hoenir said:

What form does the client entertaining take?

When I'm incurring business mileage my job entails visiting clients and engaging in meetings.

Expenses wise, this could be business lunches with clients, etc

As I say, no other company has ever taxed these expenses; I've paid out the cash on behalf of the company, I'm not getting income, I'm being reimbursed! Also, the money is coming out of my pocket (not a company CC or anything...hence the expense part)

What's your company's published policy on business entertaining?  

Veteransaver

If you are entertaining clients then really the company should be paying direct (Eg issue you with a company credit card) and let them deal with the tax consequences.

Lorian

You can't use a company credit card to claim mileage.

Is this a company car or your own car?

How many miles a year do you claim?

Are your client entertainment and mileage claims as separate lines?

Albermarle

BoGoF said:

Seems you need to talk to your payroll dept.

Maybe your employer has payrolled benefits in kind and leaving it up to you to make a claim to HMRC that the expenses were incurred wholly, exclusively etc in the performance of your duties. That said if they were content that the mileage was genuine business mileage then there would be no need to treat as a BIK if within AMAP rates.

I agree that the first port of call is to discuss with your payroll/HR dept.

penners324

Payroll probably processing them incorrectly in the payroll system.

Get hold of them