Taxed on expenses - PAYE

[pbdesigns]

Hi,

I'm just doing my wife's Self Assessment return (I know, very early!).

She was previously earning additional self assessment income, and we now only do the return because of her professional fees.

For one of her employers, all her mileage allowances have been taxed by the company. Surely that's not right, being an expense? Seems odd to be taxed on an expense, and for it to be treated as income. What needs to be done to fix that?

Thanks!

 

[pbdesigns]

_

 

[Newchodge]

Where to start?

She was previously earning additional self assessment income, and we now only do the return because of her professional fees.

What on earth does that mean?

For one of her employers, all her mileage allowances have been taxed by the company.

What on earth does that mean?

Seems odd to be taxed on an expense, and for it to be treated as income. What needs to be done to fix that?

Get an accountant who knows what they are doing.

 

[pbdesigns]

We've got our heads around it now.

There was a separate payment made each month for her actual mileage expenses, which wasn't listed on the PAYE payslip. What was on the payslip was an additional payment that was made for high mileage car users, but because this was a benefit, it was taxable.

So all is correct and everything has now worked out.

 

[Adam93]

Moving forward you may find it easier to just complete a P87 rather than a whole return just for professional subs - you should achieve the same result either way.

 

[pbdesigns]

Moving forward you may find it easier to just complete a P87 rather than a whole return just for professional subs - you should achieve the same result either way.

Interesting, a fair tax-rebate this year of a few hundred pounds.

Moving between 3 jobs in a year, and the last one not fixed hours as such, but as a contractor (PAYE), she was over-taxed by the end of it.

 

[SteveHa]

You may not have claimed all she's entitled to, depending on how her employer calculated mileage.

Just saying.

 

[MyAccountantOnline]

Hi,

I'm just doing my wife's Self Assessment return (I know, very early!).

She was previously earning additional self assessment income, and we now only do the return because of her professional fees.

For one of her employers, all her mileage allowances have been taxed by the company. Surely that's not right, being an expense? Seems odd to be taxed on an expense, and for it to be treated as income. What needs to be done to fix that?

Thanks!

What mileage allowance was taxed?