We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
tax credit question - confused
ste1406
Posts: 18 Forumite
i have recently received my renewal form and am confused by a part of the notes accompanying it with regards to work related expenses.
In Earnings as an Employee section, the notes say deduct any expenses which you have paid out from your earnings wholly, exclusively and neccessarily in the course of your work, including travelling expenses that you have paid in the performance of your duties. It then says that if your employer paid back any of these expenses to you, do not deduct the amount that you were paid back from your earnings.
this is confusing as i get my mileage expenses repaid to me for attending meetings, etc. however, this is not income that i am receiving, it is a refund of expenses that i have paid out to do my job, ie, petrol, but i have to include it in my earnings for the year.
as an example, if i earned £15K per year and then during the course of year, had £50 per month (£600.00 per year) to pay out to cover my mileage expenses for attending meetings, but had this reimbursed to me through my salary, at the end of the year my P60 would say that I have received £15600.00, but in actual fact I have only received £15K as I paid the £600.00 out in the first placeand just had it reimbursed to me.
please note that this is expenses during the course of my work, i don't get paid for travelling to and from work.
this must surely have an impact on my tax credit calculation as they are taking an extra £600 into account as income when it is not.
am i missing something because the more i think about it the more i think i would be better off not claiming my mileage expenses back as i get it in one hand by my employer and then taken off me by tax credit.
each time i contact the helpline for a logical explanation all i get is "i can see what you are saying but you have to put it down as income" :mad:
sorry for the long post but just wondered if anybody understands this as it doesn't sound fair to me, i'm just glad i don't pay out £10K expenses a year and claim it back, otherwise they would take this as income, and i probably wouldn't qualify on that basis.
In Earnings as an Employee section, the notes say deduct any expenses which you have paid out from your earnings wholly, exclusively and neccessarily in the course of your work, including travelling expenses that you have paid in the performance of your duties. It then says that if your employer paid back any of these expenses to you, do not deduct the amount that you were paid back from your earnings.
this is confusing as i get my mileage expenses repaid to me for attending meetings, etc. however, this is not income that i am receiving, it is a refund of expenses that i have paid out to do my job, ie, petrol, but i have to include it in my earnings for the year.
as an example, if i earned £15K per year and then during the course of year, had £50 per month (£600.00 per year) to pay out to cover my mileage expenses for attending meetings, but had this reimbursed to me through my salary, at the end of the year my P60 would say that I have received £15600.00, but in actual fact I have only received £15K as I paid the £600.00 out in the first placeand just had it reimbursed to me.
please note that this is expenses during the course of my work, i don't get paid for travelling to and from work.
this must surely have an impact on my tax credit calculation as they are taking an extra £600 into account as income when it is not.
am i missing something because the more i think about it the more i think i would be better off not claiming my mileage expenses back as i get it in one hand by my employer and then taken off me by tax credit.
each time i contact the helpline for a logical explanation all i get is "i can see what you are saying but you have to put it down as income" :mad:
sorry for the long post but just wondered if anybody understands this as it doesn't sound fair to me, i'm just glad i don't pay out £10K expenses a year and claim it back, otherwise they would take this as income, and i probably wouldn't qualify on that basis.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards