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expenses shouldn't be added to wages should they?

9
Found 26th Oct 2008
Hi,

A friend of mine has put an expenses claim in for using thier own car to do business miles but the claim has been added onto thier wages & they have been taxed on it - thats not right is it?

my expenses have always been seperate to my wages (at about 8 diferent companies) either listed seperately on my paycheck or nothing to do with payroll at all and all entered onto a diferent system.

Has anyone else come accross this?

cheers,
worto.

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9 Comments

Never, my expense account has always been reimbursed by cheque or bank transfer.
I've never paid tax on them.

Anytime I've ever claimed the company has repaid me at cost to myself untaxed. Simply because any expense has already been taxed when you incrrued the expense in the first place so I'd look into that a bit further.

They may have processed the expense as a benefit which would be taxed but if this is the case then it would be incorrectly processed.

If they have used their own car then they havent received any benefit and only incurred the cost of fuel to cover business milage, the business should have an agreed rate per mile to reimburse or just reimburse at cost when submitting a fuel receipt but this should not be added to wages or salary as its not additional income earned.

You should not be taxed on expenses.......You are being reimbursed for something you have paid for with earnings that have already been taxed.:)

Check that they haven't just had the expenses added to their pay slip but not included in the calculations for tax & insurance.

Our company pays expenses once a month, at the same time as our pay, so it always appears on our pay slips - it's not included in the calculations for tax & nat ins, though.

Original Poster

Thanks - thats pretty much what I thought - I'll pass that link onto them too - cheers.

Its becoming the norm, the NHS add your expenses to your wages packets but its not taxed just added to the BACS transfer and detailed in your wage slip.

Original Poster

Its becoming the norm, the NHS add your expenses to your wages packets … Its becoming the norm, the NHS add your expenses to your wages packets but its not taxed just added to the BACS transfer and detailed in your wage slip.



I can understand it being done as part of the wage slip via BACS I've seen that before but they reckon it's not been shown seperately on the wage slip just added onto thier basic wage which is the bit that seems wrong, I've not seen thier wage slip yet so I'm not %100 sure but thats what they have said. So they have earned more than normal this month & paid more tax than normal.

i work for local government at expenses are paid through your salary - but they are not taxed they are entered on a different code to ensure you don't pay tax on it - but it goes on your payslip to show everything that is 'paid' to you
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