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taxed on work expenses (employee)

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  • bhaisab
    bhaisab Posts: 289 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    This took a while to sort out
    seems like they taxed everyone on all expenses as some employees claim lunch/drinks and other costs like taking clients to lunch.
    I dont, as I only claim parking, mileage and tickets etc

    on my last wageslip they deducted the expenses and then added it back but not included for tax.

    Now they have split the expenses into two on the wage slip. 
    Expenses1 for files costs like mileage etc
    Expenses2 for costs claimed from office account
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    Someone made a basic mistake and set-up the "Expenses" category wrong in the payroll system.  
  • Linton
    Linton Posts: 18,188 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Hoenir said:
    Someone made a basic mistake and set-up the "Expenses" category wrong in the payroll system.  
    AIUI normally expenses paid by the employer are taxable but if genuinely for work the tax can be reclaimed by the employee . However some employers have an agreement with HMRC  to pay expenses gross.

    At least that is how it worked when I
    was employed 20 years ago.
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