Expenses, tax and PAYE

[MartinQ]

Hi all.

I'm just after a little advice. My wife and I are both PAYE employees (at different companies). When I have stayed overnight and incurred an expense I've had the full amount transferred into my account via BACS. However, my wife makes regular expenses claims for parking and mileage (private car) but has the money returned in her pay, and is therefore taxed. Which is correct?

[sumo69]

Reimbursed expenses should not be taxed - have you checked the tax figures on your wife's payslip as I very much doubt what you say is actually happening.

David

[MartinQ]

I'll double check when I get home, but they do appear in the left hand column.

[Countdown]

MartinQ said:

Hi all.

I'm just after a little advice. My wife and I are both PAYE employees (at different companies). When I have stayed overnight and incurred an expense I've had the full amount transferred into my account via BACS. However, my wife makes regular expenses claims for parking and mileage (private car) but has the money returned in her pay, and is therefore taxed. Which is correct?

Not everything on your payslip is taxed. Expenses should be set up as non-taxable.

Actually expenses can be set up as both taxable and non-taxable. For example if I claim for entertaining clients I get the money back but it's taxed.

[illmonkey]

MartinQ said:

I'll double check when I get home, but they do appear in the left hand column.

That's just the "in" column, tax is deducted from relevant lines, not the total.

[Countdown]

MartinQ said:

I'll double check when I get home, but they do appear in the left hand column.

Doesn't matter which column - you/she can check whether the correct tax has beend educted by using the linky below

http://www.listentotaxman.com/

Don't include the expenses in the "pay" bit - if the tax deducted is the same then it is correct. IYSWIM

[MartinQ]

Countdown said:

Doesn't matter which column - you/she can check whether the correct tax has beend educted by using the linky below

http://www.listentotaxman.com/

Don't include the expenses in the "pay" bit - if the tax deducted is the same then it is correct. IYSWIM

Thanks for the link. I'll have a look later.