taxed on work expenses (employee)

bhaisab

hello everyone
some advice pls

for work I have to travel and use my own car, so claim mileage and parking expenses. previously these were paid separate to my wages.
I've never gone over 10000miles per year, so claim at 45p per mile

My current employers (started last month) pay my expenses for mileage and parking as part of my wageslip and are taxed. the expenses are part of gross income

Just wanted to check if this is correct or mistake.
wanted some info before I raise it with work

Penguin_

No they shouldn't be taxed.

Bookworm225

"payrolling" of expenses is now encouraged as it avoids having to do separate expense payment runs and reduces notifications needed to be sent to employees and HMRC 
Payrolling: tax employees' benefits and expenses through your payroll - GOV.UK

almost certain that if you study your payslip properly you will see that the taxable gross figure is not inclusive of the expense claim amount.

You will not have paid tax on the mileage (unless your employer is using some very unusual payroll software as most payroll systems are well able to include expenses as non taxable additions to pay) 

bhaisab

looking at my wageslip for last month Total Gross pay is equal to Gross for tax
so expenses included in the taxable amount?

molerat

so expenses included in the taxable amount?

Yes they are unfortunately.

TheSpectator

What are the expenses incurred for? Only reason for an employee to tax them would be if they fell under ordinary commuting.

DullGreyGuy

TheSpectator said:

What are the expenses incurred for? Only reason for an employee to tax them would be if they fell under ordinary commuting.

Any ineligible expense would be taxed, like commuting or putting lunch on the company card when at your normal office etc. 

First conversation should be with HR/Payroll as on the surface it looks like they've been coded wrong 

penners324

Looks like they've set up expenses incorrectly as taxable.

Speak to the payroll department 

bhaisab

the expenses are a mixture of items claimed back, so its mainly parking tickets, train tix and mileage for travelling to see clients away from the main office, these are claimed back from the client so dont think these should be taxed.
dont claim for commuting

admin have confirmed with the accounting company that it shouldnt have been taxed

penners324

They should reprocess those expenses.

Bookworm225

bhaisab said:

the expenses are a mixture of items claimed back, so its mainly parking tickets, train tix and mileage for travelling to see clients away from the main office, these are claimed back from the client so dont think these should be taxed.
dont claim for commuting

admin have confirmed with the accounting company that it shouldnt have been taxed

then as your payslip confirms, those expenses should NOT have been taxed,
payroll input error of otherwise legitimate non taxable expenses?

has anyone else in your company had the same? If yes, then it may be a serious incompetence within payroll that the company needs to fix pronto.
If only you, it just be a one off mistake.