Paye 40% tax payer & OOP expenses
Paye 40% tax payer & OOP expenses
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coljoh148

Original Poster:

2,228 posts

206 months

Thursday 7th June 2018
quotequote all
It's just occurred to me that I am paying tax on out of pocket expense claims paid into my wages by my employer.

These are made where I've had to pay cash for anything business related.

Surely I shouldn't be taxed on this..any advice?

I've emailed hr services (global multinational co) but they are pretty useless.

Will I have to claim this back through a self assessment or something? I really don't want to have to use self assessment if possible.

bogie

17,057 posts

301 months

Thursday 7th June 2018
quotequote all
Generally expenses are paid tax free, so your payroll dept are doing it wrong.....

if they dont sort it then yes, claim it back each year via self assessment, its easy enough. If its regular each year then HMRC can build it into your tax code to give you the tax back that way.

supercommuter

2,169 posts

131 months

Saturday 9th June 2018
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My expenses have always been tax free!

devnull

3,859 posts

186 months

Wednesday 13th June 2018
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Yes, expenses should be tax-free - my employer, for example, pays my expenses into a current account of mine, which I treat solely as a "bucket" for repaying the business expenses I incurred on a credit card.

Countdown

49,235 posts

225 months

Wednesday 13th June 2018
quotequote all
coljoh148 said:
It's just occurred to me that I am paying tax on out of pocket expense claims paid into my wages by my employer.

These are made where I've had to pay cash for anything business related.

Surely I shouldn't be taxed on this..any advice?

I've emailed hr services (global multinational co) but they are pretty useless.

Will I have to claim this back through a self assessment or something? I really don't want to have to use self assessment if possible.
Are you providing receipts? If you aren't then they would be taxable.

Even if they are reimbursed through Payroll there's no reason for them to be taxed as long as they are what HMRC would determine as legitimate business expenses.