Travel Expenses

[goozer321]

Hi

I am PAYE and work from home 2 days a week and my employer has sort of admitted that it should be treated as a second workplace and unexpected journeys I am asked to make on office business on those days should therefore be tax deductible, but they won't refund the expenses, saying that I should claim them back directly from HMRC.

They pay expenses from journeys from the office on days I am there, just not from home.

My question is this - is there a legal obligation on employers to pay travel expenses in line with HMRC regs, or can they just pick and choose and pay as they fancy?

Thanks

 

[Newchodge]

This will be entirely down to your contract. If your contract is silent about this situation, you need to discuss the situation with your manager.

It may be that they are worried because HMRC states that journeys from home to the normal place of work are not claimable.

 

[goozer321]

Thanks, Newchodge

My Contract states: "Employees who use their own vehicles for work travel are entitled to claim a mileage allowance", blah blah, rates available from Finance

As I say, they pay 40p (apparently the HMRC rate is 45p - also says a lot) for journeys from the office, just not from my house.

Is this just a contract thing then - no obligation from HMRC?

 

[Newchodge]

Thanks, Newchodge

My Contract states: "Employees who use their own vehicles for work travel are entitled to claim a mileage allowance", blah blah, rates available from Finance

As I say, they pay 40p (apparently the HMRC rate is 45p - also says a lot) for journeys from the office, just not from my house.

Is this just a contract thing then - no obligation from HMRC?

The only HMRC involvement would be if they paid more than 45p - it becomes taxable, or if they pay for journeys that are not permitted, such as home to normal place of work - that is also taxable.

 

[amethyst201190]

Hi

I am PAYE and work from home 2 days a week and my employer has sort of admitted that it should be treated as a second workplace and unexpected journeys I am asked to make on office business on those days should therefore be tax deductible, but they won't refund the expenses, saying that I should claim them back directly from HMRC.

They pay expenses from journeys from the office on days I am there, just not from home.

My question is this - is there a legal obligation on employers to pay travel expenses in line with HMRC regs, or can they just pick and choose and pay as they fancy?

Thanks

Most of the people now a days really wants to have an employer stay at there house why? it is because they can save there expenses everyday and most of all the time. If you pay a household employee monthly salary of more than the amount specified by law in a tax year you generally must withhold social security and Medicare taxes from all cash wages you pay to that employee.

 

[Newchodge]

Most of the people now a days really wants to have an employer stay at there house why? it is because they can save there expenses everyday and most of all the time. If you pay a household employee monthly salary of more than the amount specified by law in a tax year you generally must withhold social security and Medicare taxes from all cash wages you pay to that employee.

Not in the UK. Or did you not notice this is UK Business Forum?

 

[goozer321]

Wow, amethyst201190 - America seems a bit tough on homeworkers.

OK - thanks again, Newchodge - I'll chase up on the contract.

One last question - when an employer does pay travel expenses to an employee, does it come out of their income/profits, or do they pay an equivalent amount less in tax?

Cheers!

 

[EstherG]

Hi

I am PAYE and work from home 2 days a week and my employer has sort of admitted that it should be treated as a second workplace and unexpected journeys I am asked to make on office business on those days should therefore be tax deductible, but they won't refund the expenses, saying that I should claim them back directly from HMRC.

They pay expenses from journeys from the office on days I am there, just not from home.

My question is this - is there a legal obligation on employers to pay travel expenses in line with HMRC regs, or can they just pick and choose and pay as they fancy?

Thanks

Some employers will allow travel expenses from home to be claimed after the deduction of normal home to office travel. For example if your normal place of work is 10 miles away then you would need to deduct the first 10 miles of each mileage claim you submit.

This isn't a HMRC requirement but a reasonable suggestion to put to your employer.

Good luck!

Esther