To think this can’t be right?

[CatchingBabies]

I work full time, NHS in case my username doesn’t give it away.

I have recently started doing a community based role, home visits etc. and so had to update my car insurance to business use (at my own expense) I also now claim a mileage allowance which is the absolute bare minimum that’s legal I believe.

This allowance is paid to me once every 3 months after I submit claims, petrol receipts etc. As it is paid as part of my wages I have been taxed on the amount meaning that the allowance I receive no longer covers the actual costs.

Also tax credits have now stated that this counts as income and have deducted the entire amount I receive off my child tax credits payments, and they’ve used the pre-tax amount so they have deducted more than I actually get.

It means that I’m now being paid LESS than I was when I was hospital based for doing the exact same hours and on top of this have to pay business insurance, car parking fees and petrol, never mind the depreciation on my car.

Surely this can’t be right? I’ve spoke to my tax office, tax credits and payroll today and they all say it it!

Why would anyone do a community role if this is true?

There was another thread on this a few months ago, I think, also a community nurse? Her payroll was done incorrectly also, the same as yours. Maybe if you can find the thread you could pm her and see if and how she got it sorted out,

As far as I know expenses should be paid separately... because you already paid tax on that money.
My employer pays them totally separately and there are no tax implications.
What you've described doesn't sound right

Agree with other posters. Looks like they have made a mistake.

It isn’t a lease car / fleet car is it? Mileage for lease cars is lower than the standard rate.

Also agree that it's wrong. What's your yearly salary (at the top of your payslip)? Divide that by 12 and that number should roughly be the same as your basic pay. Expenses are separate (I'm an NHS community prof)

Agree, expenses reimbursement is entirely separate from payroll and it can’t “just be added to basic pay”. They’ve cocked up your pay.

You shouldn't be out of pocket for expenses. They are not a 'benefit' they are repaying you for costs accrued. Also not the point of the thread but once every 3 months is shit - you're effectively always loaning them money for 13 weeks!

FFS, what is it with the NHS and its inability to apply the law correctly when it runs its payroll? No wonder it's in such a mess.

Reimbursement of specific expenses - ie specific mileage at the approved mileage rate supported by receipts - is not taxable as earnings under any of our tax laws and what they are doing is incorrect and a breach of the law.

If they were paying you a round allowance to cover any travel costs, rather than a reimbursement, that would be taxable (but you could then claim a tax deduction for your specific costs). If they paid you more than the approved mileage rate the excess would be taxable. But they're doing neither of those things.

What they're doing is wrong. If they've got competent or qualified professionals running their payroll they should know that. This is BASIC. Who the fuck is running this payroll that they don't know this?

Ask them to show you the part of ITEPA that says that travel expenses incurred wholly, exclusively and necessarily in the performance of your duties are taxable.

They won't be able to. Because that's not what the law says. Everybody else is required to follow the law, why do they think they don't have to bother exercising due care? If they're not bothering to correctly flag expenses reimbursements so they're not charged to tax as earnings then they are being careless at best, deliberately fraudulent at worst.

Are they aware of the penalties involved for deliberate errors?

Agree with the pp, you should not be taxed on your business mileage.

You need to find out why HMRC and your payroll dept think that you are getting a benefit in kind. Ask them what benefit you are getting. All you are getting is being reimbursed 25p a mile on business mileage which is obviously not a benefit as this is cover the cost of petrol, insurance etc of using your vehicle for work.

Also, as already mentioned above, if you are only getting 25p a mile, then you can claim tax relief on 45p less 25p = 20p per mile on the first 10,000 miles:

www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work.

It is absolutely NOT a benefit in kind. That would be taxable.This is where the confusion is arising.

It is an expense reimbursement, costs incurred during the course of your work. I too think you should get .45/mile for this up to the first 10000 miles.
www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances

The tax office and tax credit people can only work on what your payroll dept is telling them, via your payslip. But your payslip is wrong, your payroll dept has made an error, you have to get back to them in the first instance.

AIBU to think it's terrible I'm paying tax/NI on this? http://www.mumsnet.com/Talk/amiibeingunreasonable/3341803-AIBU-to-think-its-terrible-Im-paying-tax-NI-on-this

This was a similar thread recently by NHS worker.

Surely you should be getting more than 25p per mile though? Unless you have went over 3500 miles already this financial year. When I last worked in a community post I got 56p per mile. So I was taxed on the amount that was above the HMRC rate.

Hope you get sorted OP.

Mine gets listed as Business Mileage and definitely isn't taxed. And I get 45p a mile. Is the rate really not standardised across the nhs?

Not the point of your thread, but I saw you wrote about paying £120 a year just to do your job. Is this your professional registration that you must have to be permitted to work? If so, it's my understanding that you can claim tax relief on this amount, if you're not already aware.

www.nmc.org.uk/registration/staying-on-the-register/tax-relief/

Not the point of your thread but why do you submit expenses 3monthly? Over 17 years in Community & I've always done it at month end; last 5 years or so it's been through sel.

OP I'm a qualified chartered accountant.

You've been given completely wrong information by both your payroll dept and the tax credit bods.

You are entitled to claim 45p per mile up to the first 10,000 miles in any tax year. Above 10,000 miles you are entitled to 25p per mile.

If you are only receiving 25p per mile then you are absolutely not receiving a benefit in kind.

You are also entitled to claim the additional 20p per mile up to the first 10,000 miles as an adjustment on your tax code ie you will pay less tax to an equivalent value.

I suspect tax credits are treating it as income because your employer is treating it that way by not splitting it out and paying it gross after tax.

You need to get your payroll dept to sort that as a starting point.

Thank you so much for all your advice. I’m going to speak to payroll again tomorrow and explain what you’ve said here. Hopefully can get it resolved!

*SparklyLeprechaun Mon 08-Oct-18 21:28:14
Your payroll department is run by a chimp. An incompetent chimp at that. *

If they tell you you're wrong, go above them. Sparkly is correct. You have a chimp at large.