tax credits

storja

can anyone help me with my tax cred review. this is my 1st review and i have been promoted in work and now get car mileage. i pay for my petrol and then claim mileage back. unfortunetly this shows up on my p60. do i have to declare it. it seems wrong as i had had to pay for the petrol and because i claim it back it increases my wages and i'm worried my credits will be lowered

mitchaa

Are you a contractor/SE or PAYE?

You must declare it if you are PAYE.

When i claim work expenses, i get it paid directly without any deductions, it doesn't show on my P60, why would it on yours???

[Deleted User]

It may show on your P60 but does it show as being taxed?

Check your "Total for the year" figure against "Taxable Pay".

You only need to declare the taxable pay to TCO for your declaration.

[Deleted User]

If you are not sure of the figures on the P60 the following is the advice given to callers to the TCO helpline.

If the mileage is paid in order for you to carry out your duties as employee you can deduct the mileage costs. eg If you work for Transco and were called out to investigate a gas leak or if you were a regional manager for a company and were required to travel from one office to another as part of your duties, you can deduct the milage from your declared earnings as this is part of your job.

If, however, you are receiving mileage for commuting to work you cannot deduct this from the amount the declaration.

storja

mitchaa wrote: »

Are you a contractor/SE or PAYE?

You must declare it if you are PAYE.

When i claim work expenses, i get it paid directly without any deductions, it doesn't show on my P60, why would it on yours???

looking at my wageslips i dont get taxed on it but its included in my total on p60?

storja

its not for commuting to work. i have to go out on visits and i claim the mileage back. looking at my wage slips i'm not taxed on it but it does show up on my p60 in pay for year. does this mean i deduct the mileage from my p60?

storja

i think my wage slip is weird. it gives a pay for year and tax deducted but dosent say taxable pay!

HappyDuck_2

http://www.hmrc.gov.uk/taxcredits/income-from-emp.htm

Step 1 - how much money came in?
First take your total wages from all jobs that you had in the last tax year, before taking off tax and National Insurance. This is known as your gross pay.
This is total gross pay, not gross taxable pay
Step 2 - what to take off:
* Money you had to pay out to do your job and which your employer didn't pay back to you. Include travel costs, but not the cost of getting to and from work.
As you have been reimbursed by your emp you cant deduct this amount.

Sorry, but it looks like you need to declare the full higher figure. Check the wording to be safe - nothing worse than a fraud investigation.

[Deleted User]

The wording is confusing on HMRC website guidance.

I have previously raised this with CSST and the following was the information from them:
You declare the taxable pay and you would deduct the travel expenses from the taxable pay if they were not paid to you by the employer.

The case brought up was for a home carer in a rural area who was paid mileage that added about 50% on top of her salary. As it is non-taxable she did not declare it as income. She would not have had any benefit from this money as she was maintaining her vehichle and paying for the fuel.

HappyDuck_2

lol, more contradictions!!!

I have been completing all S17's with total gross not total taxable gross. I will raise it tomorrow with our CSST & see if we can have a straight answer.

storja

Hi HappyDuck did u find anything else out for me