AIBU to think it's terrible I'm paying tax/NI on this?

[BetterCallMum]

I drive around as part of my job. Sometimes I need to stay overnight.

Each month, I submit my petrol and accommodation expenses. I get these reimbursed along with my wage the following month.

Although this 'extra money' shows up on my pay slip as mileage or other expenses, the money is then combined with my standard monthly wage. I then pay tax and NI on the whole amount instead of just my wages.

So, let me get this right, i pay for the petrol/hotel costs out of last month's wages (which I've already paid tax on), get this reimbursed the next month only to pay tax and NI on it all over again!

Initially, I was under the impression that I could file a self assessment at the end of the year and claim tax relief on this, however, I looked into it last night on HMRC and I can't claim it back because my employer has already reimbursed me for these costs??

I get on average an extra £250 a month (expenses), not enough to move me up a tax band however it does increase my NI each month.

Does this seem right?

Okay so here are the very nitty gritty details of a few months' wage slips to give an example. Can anybody help clear things up? I have no idea what HMRC have decided makes up my total taxable income for August. Nothing seems to be adding up!

Does this seem right?

June - My HMRC account says my total taxable income for this month was 1647.66

My wage slip for June says: Basic Hours: £1629.16
Su Mileage AFC: 168 business miles - Rate = £0.5600; amount = ££94.08

TOTAL PAY AND ALLOWANCES = £1723.26

Income tax = £130.14
NI = £113.48
Student Loan = £10

TOTAL DEDUCTIONS = £253.62

NET PAY = £1469.64

July - My HMRC account says my total taxable income for this month was 1712.25

My wage slip for July says: Basic Hours: £1678.04 (slight pay rise due to AFC)
Su Mileage AFC: 311 business miles - Rate = £0.5600; amount = £174.16

TOTAL PAY AND ALLOWANCES = £1852.20

Income tax = £143.13
NI = £121.23
Student Loan = £16

TOTAL DEDUCTIONS = £280.36

NET PAY = £1571.84

August - My HMRC account says my total taxable income for this month was 1849.57

My wage slip for August says: Basic Hours: £1678.04
ARRS 18/19 SUP = 145.24 (NO IDEA WHAT THIS IS!)
Accomodation, train, meals (all broken down individually) = £384.49#
Su Mileage AFC: 239 business miles - Rate = £0.5600; amount = £133.84

TOTAL PAY AND ALLOWANCES = £2341.61

Income tax = £170.73
NI = £137.71
Student Loan = £28

TOTAL DEDUCTIONS = £336.44

NET PAY = £2005.17

Just to clarify, the amount of miles on each payslip is the exact amount I have claimed for in the month. All miles claimed for were for travelling from my base to clients and then back to base. Not for commuting etc.

I get monthly expenses for travelling and I'm not taxed on it.

Your employers are making a mistake doing that and I'd take it up with them.

So basically, HMRC are calculating my total taxable income each month to be more than what I am actually earning.

For June - they have decided that my total taxable income was £18.50 more than my earnings/wage.

For July - they have decided that my total taxable income was £34.21 more than my earnings/wage.

For August - they have decided that my total taxable income was £171.53 more than my earnings/wage!!!

Where did this come from (especially for August)? That's even more than my petrol claim for that month!

What is your tax code

Hi. Tax code is S1185L and my NI table is A (whatever that means).

The ARRS 18/19 sup is your pay rise which was awarded from April, it's the extra they owe you for April - June I think

Hi OP, you are being taxed on the excess mileage allowance. HMRC only allow 45p a mile ( on the first 10,000 miles). As you are getting 56p you are being taxed 11p for every mile. That covers June and July. Make sense?

Thanks - one mystery solved!

So in August, my wage was technically = 1678.04 + 145.24 = 1823.28

So HMRC have calculated my taxable income for August as 26.29 more than my 'earnings' (including the backpayments for the pay rise).

Hmmm... So it looks like the extra £20 or so each month is coming from the increased rate I am given for my petrol. So it's right all along?

Thanks! Feel such a fool now getting all het up over this and taking up so much of everyone's time.

Yes, it makes sense. So I am paying tax on approx £20 of my reimbursed fuel each month because I am paid over the HMRC normal rate.

I feel so much better now I know what's going on.

What a headache. Thank you all!

You've all saved me a) being on hold with HMRC for ages tomorrow and b) looking like a numpty to my payroll dept.

I've posted a duplicate thread as I wasn't expecting any further answers on this tonight and was getting antsy. I'll ask MNHQ to delete the other and if possible move any answers over to this thread to hopefully help anyone else having similar queries in the future.

THANK YOU EVERYONE