1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Expenses

Discussion in 'Pay and conditions' started by fineliner, Oct 8, 2015.

  1. fineliner

    fineliner Occasional commenter

    I have just put in a claim for travel expenses. I don't usually bother, but this was quite a large amount. I have been told it will be paid through pay roll. Does anyone know how this is likely to show up so that it doesn't get taxed again?

    Thanks
     
  2. Morninglover

    Morninglover Star commenter

    'Expenses'? Lucky you! (joke!)

    In my experience your pay slip will show the expanses as different from your pay & it won't be taxed...Provided your payroll provider knows what they are doing,of course!
     
  3. jarndyce

    jarndyce Occasional commenter

    I've never been taxed when claiming expenses, travel or otherwise.
     
  4. fineliner

    fineliner Occasional commenter

    Thanks for the info.
     
  5. johnberyl

    johnberyl Occasional commenter

    You are fortunate then. In the past I have claimed very few miles but even this has had an impact on my tax code as payroll have advised that this information is shared as a matter of course with the Inland Revenue.
     
  6. frustum

    frustum Star commenter

    If you have legitimate employment expenses, they are not subject to tax. Normally, if your employer covers your expenses, they would do this untaxed. If it comes out of your salary (for instance, a professional subscription, part of your union subs, specialist work clothing), then you can put it on your tax return, or write to the tax office to get it taken into account. They sometimes then adjust your tax code upwards, if it's a regular annual thing - your tax code indicates the amount you earn before paying any tax, so this means they're taking the subscription into account before taxing you instead of after. I presume they don't do this with more irregular amounts, such as travel expenses.
    There's a funny one with mileage, which is that if your employer pays less than the HMRC-approved rates, you can claim the difference on your tax return. I wonder if the mileage information is shared with the IR to help verify that you are claiming the correct amount.
     
  7. Rott Weiler

    Rott Weiler Star commenter Forum guide

    HMRC rules are nothing if not complex, endless exceptions and special cases, but it's correct that in general employers have to report to HMRC all expenses they pay to employees. That doesn't make them taxable though as long as the expense falls within HMRC rules for allowable expenses. Reimbursing mileage at the HMRC approved mileage rate shouldn't normally give rise to a tax charge so shouldn't affect anyone's tax code.

    How employers process the claim - eg through payroll or out of petty cash - makes no difference to whether an expense is allowable or taxable. HMRC aren't keen on expenses being paid from Petty Cash - too much scope for abuse in their view - so large employers generally pay through their payroll system.
     
  8. Skeoch

    Skeoch Star commenter

    Payment will be via payroll to avoid dealing with cash or having to raise cheques, both of which increase costs and take admin time; payroll also ensures that there's an audit trail. While the Revenue will be told about expenses, they're not taxable (I think they can be if you are receiving many thousands of pounds, but that's pretty unlikely).
    If you're paid less than the HMRC mileage rate then you could claim the balance on your tax return. So if you do 100 miles and work pays 35p/mile so that's £35; HMRC rate is 45p, so claim 10p/mile against tax, £10. Just check, as your employer should have done, that your car is insured for business purposes.
     
  9. Rott Weiler

    Rott Weiler Star commenter Forum guide

    The amount of expenses doesn't make any difference to whether they are allowable, but it does make a difference to how much attention to them HMRC will pay. The mileage amounts a teacher might claim will usually be too small for HMRC to ask about, but if you are receiving £100k of expenses a year expect a HMRC audit to check they are genuinely allowable!
     

Share This Page