Travel expenses situation at work as a graduate

peter_parker786

Grumpy_chap said:

Hoenir said:

Recall in 1995 my then employer , which operated under 3 regional divisions. Having the joys of a full on HMRC payroll audit. We received a clean bill of health. The other two divisions were found not to be complying with a catalogue of misdemeanours. Final negotiated settlement was a £500k liability. Since then the penalties have been increased and are even more onerous. 

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But, those penalties apply to the employer, not the employee.

It is for the employer to correctly declare the OP's expenses through RTI or P11D.  

The OP should carry on claiming the expenses, but save 20% of the expenses so that, if it turns out that there is an income tax liability, the OP can pay that easily.
To stop claiming would mean the OP get 0%.
If the OP claims and there is no tax liability, the OP gets 100%.
If the OP claims and there is a tax liability, the OP gets 80%.

80% of something or 100% of something is a lot more than 0% of something.

If I'm being completely honest, this is quite confusing - maybe it's my own lack of comprehension. 

My original post mentioned how this whole thing with being able to expense is quite discreet, so much so my current manager said it would be smart to not mention it. It is only recently, i was prompted my early careers advisor (HR) about it and she just slipped in the fact I can't expense to a contractual location. 

All things said, I think it makes sense for me to take the onus and pay for it myself moving forward (Which I've been doing for the past few weeks already) after reading this thread amongst other considerations and hope for no further implications through tax or through the company.  

SimonSeys

I spent two days a week for six months in another office and am very familiar with this issue. 

i don’t think it is a benefit in kind as it doesn’t break the 40% / two years rule.  I think it’s a temporary workplace given that the OP is on rotation. If the OP spends #on average# more than two days a week (40%) or the placement is anticipated to be more than two years then I think tax is due, but I don’t think that’s the case here’s unless all rotations are in London (which I don’t think is the case, otherwise OP would get london weighting)

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32080
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OP.  I wouldn’t about it. You’ve done your bit and raised it with both managers and HR.  They have made a decision. Time to worry about something else. 

peter_parker786

SimonSeys said:

I spent two days a week for six months in another office and am very familiar with this issue. 

i don’t think it is a benefit in kind as it doesn’t break the 40% / two years rule.  I think it’s a temporary workplace given that the OP is on rotation. If the OP spends #on average# more than two days a week (40%) or the placement is anticipated to be more than two years then I think tax is due, but I don’t think that’s the case here’s unless all rotations are in London (which I don’t think is the case, otherwise OP would get london weighting)

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OP.  I wouldn’t about it. You’ve done your bit and raised it with both managers and HR.  They have made a decision. Time to worry about something else. 

I’m not worried about the tax implications as I’m only going in to London once a week most times, sometimes two. 

The original point I made was to do with company policy and whether it’s enforced correctly. This is  Because I know of people (more senior) who have got their requests for travel denied. 

Also spoke to a trusted colleague from finance and he also said that getting travel expenses isn’t the norm. 

Just to add, all my rotations are in London, same office just different teams. 

DullGreyGuy

SimonSeys said:

I spent two days a week for six months in another office and am very familiar with this issue. 

i don’t think it is a benefit in kind as it doesn’t break the 40% / two years rule.  I think it’s a temporary workplace given that the OP is on rotation. If the OP spends #on average# more than two days a week (40%) or the placement is anticipated to be more than two years then I think tax is due, but I don’t think that’s the case here’s unless all rotations are in London (which I don’t think is the case, otherwise OP would get london weighting)

Can't comment for the OP but the graduate schemes I've been involved with were 4 rotations of 6 months each and most, if not all, will all be in the same building let alone the same city. Most were done at head office or regional head office so your core functions you cycle through are all there. For the scheme I applied for it was only the customer service rotation, which was mandatory on paper, may move you to a site that was 5 minute walk down the road. 

peter_parker786

DullGreyGuy said:

SimonSeys said:

I spent two days a week for six months in another office and am very familiar with this issue. 

i don’t think it is a benefit in kind as it doesn’t break the 40% / two years rule.  I think it’s a temporary workplace given that the OP is on rotation. If the OP spends #on average# more than two days a week (40%) or the placement is anticipated to be more than two years then I think tax is due, but I don’t think that’s the case here’s unless all rotations are in London (which I don’t think is the case, otherwise OP would get london weighting)

Can't comment for the OP but the graduate schemes I've been involved with were 4 rotations of 6 months each and most, if not all, will all be in the same building let alone the same city. Most were done at head office or regional head office so your core functions you cycle through are all there. For the scheme I applied for it was only the customer service rotation, which was mandatory on paper, may move you to a site that was 5 minute walk down the road. 

You’re absolutely correct in assuming that, this is how my grad scheme functions

Grumpy_chap

peter_parker786 said:

Just to add, all my rotations are in London, same office just different teams. 

I hope I am not asking the obvious, but you mentioned upthread that you are based in the Midlands.
If the company is based in one office in London, what is your plan once you have completed the Graduate scheme?  Will you be relocating?  If so, you might as well relocate sooner than later.

peter_parker786

Grumpy_chap said:

peter_parker786 said:

Just to add, all my rotations are in London, same office just different teams. 

I hope I am not asking the obvious, but you mentioned upthread that you are based in the Midlands.
If the company is based in one office in London, what is your plan once you have completed the Graduate scheme?  Will you be relocating?  If so, you might as well relocate sooner than later.

I've always said I will decide what to do for when the time comes. Relocation is not an option for me, and before anyone makes the point - my contract stipulates that this is a hybrid role hence why I come in at the frequency I do. 

peter_parker786

Hi, thought I’d provide an update: 

I got in contact with my manager who oversees my progress through the whole grad scheme (not my line manager) and he has reassured me to not worry as he’s allowed to expense as a result of my situation at home where I support family financially (I am only male of a single parent household). 

However, I still feel uneasy about it all due to the company policy saying you can’t expense to a contractual location. To confirm details, yes the grad scheme is in the same building in London for the duration of two years, yes I rotate teams every 6 months and yes it is not company policy to expense, but I seem to have gotten managers discretion - it’s difficult to avoid when people allude to my travel and if it’s being expensed or not because, I’ll reiterate, I know of people who do not/can’t get their travel expensed. 

peter_parker786

Any further feedback would be appreciated - such as the potential implications of of this or what would be the best case for me to do next. 

Marcon

peter_parker786 said:

Any further feedback would be appreciated - such as the potential implications of of this or what would be the best case for me to do next. 

Given all the feedback you've had already on this website, and what your own company has said to you, I can't see any value in posting yet more 'feedback' here. It's clearly not going to reassure you, nor can it possibly reflect your company's policies and discretions.

You seem to be over-thinking things, but that's probably better than not thinking at all! Send your manager an email thanking them for confirming that he’s allowed to expense your travel as a result of your situation at home where you support your family financially. Perhaps add something (you know your own style - and his) about being one less thing to worry about?