Taxable travel expenses.?

Question

Why are my travel expenses taxi fares etc., taxed? I'ts only about £45 a month, my pay office has taken tax off the amount. why?

Yes I produced the reciepts, I live abroad but work in the U.K. so pay U.K. tax, the company pays for an overnight hotel accomodation and transport to my place of work which is mobile. I work in the oil & gas industry offshore.

Answer 1

If this is regular commuting then it IS taxable. If it is purely for business purposes (travelling from work to meetings etc - not from home to work) then it is not taxable. You need to check if you employer has something called a 'dispensation' with HMRC in place. This is something that allows them to reimburse you for bona fide business expenses tax free - if they do not have a dispensation from HMRC then they must deduct tax and national insurance contributions from any expenses they reimburse you for then you have to make a claim for your business expense in a personal capacity, either through a self assessment return or by contacting the office directly with details of the expense and asking for a tax rebate.

Answer 2

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RE:
Taxable travel expenses.?
Why are my travel expenses taxi fares etc., taxed? I'ts only about £45 a month, my pay office has taken tax off the amount. why?

Answer 3

I dont think they are taxable, but Im not a tax professional... I dont think traveling expenses will fall under your taxable income if you are getting reimbursed, keep you reciepts and go to a tax guy and try to not do your taxes yourself just to be safe.

Answer 4

You should not have been taxed. Did you produce receipts and complete an expense claim form?
This kind of expense is known as a billable expense - an expense that you have actually put your hand in your pocket and paid out for - trust me, it is not taxable.
Once a year, the end of the tax year - if you regularly claim expenses, your employer should complete a form to the tax offce on your behalf (sorry - can't remember form number) this is sent to the tax office to show in simple terms why an amount of your pay packet during a certain month is not taxable. - Speak to your company payroll to get it sorted - I am one hundred per cent certain that this is not a taxable part of your income - I make such claims on a weekly basis.

Answer 5

If it is your normal home to work travel then it is taxable. If it is expenses incurred traveling around as part of your job, then that should not be taxed. Make sure you have detailed which of these it is on your claim form.