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child tax credit advice needed

9 replies

constantlyworried · 15/09/2011 13:42

Hi,
This is my first post so please excuse any errors.My partner is a HGV driver and recently started a job where he is paid what is called night out money,this is tax free and according to the hmrc website an allowance to cover expenses caused by being away from home.For example meals and showers etc.
Can anyone with experience tell me if this money will be counted as income for child tax credit purposes.
thankyou

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CogitoErgoSometimes · 15/09/2011 14:45

Tax credits are based on gross income ie. all paid jobs before deductions. So if he is paid the allowance as part of his salary, even if the allowance isn't taxed, I would think it has to be declared. It may be worth contacting the Tax Credit Helpline, however, to have an official verdict.

constantlyworried · 15/09/2011 16:05

hi,
Thanks for your reply,will probably give them a call.

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CogitoErgoSometimes · 15/09/2011 16:34

I should add.... an allowance is treated differently to reimbursement. If he was to buy meals or hotel rooms, for example, and submit receipts to be reimbursed, that wouldn't be counted as part of his gross income. An allowance that is received whether or not any money has been spent is much closer to a 'perk'.

constantlyworried · 16/09/2011 09:11

thanks.

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constantlyworried · 19/09/2011 13:34

hi,
Im slightly confused now,I have just called the tax credit helpline and was asked
does he get a p11 form or was it classed as a company benefit both answers were no.He then said if it is not included in his p60 then you dont have to declare it.This is fantastic news,but as other people have said different, i would love to hear from anyone in a similar situation.
thanks

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constantlyworried · 19/09/2011 14:10

sorry meant p11d form

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farming4 · 19/09/2011 14:23

Your dh won't get his p11d form until he gets his next p60 in April. I got caught out cos I didn't realise I had to declare my p11d and ended up having to pay money back - after that I just estimated what I thought would be the total for the year and gave it to tax credits, then when the final figures were sorted out I usually had an extra payment cos I had over estimated iyswim. Still do it now that dh is self employed - ie if accountant predicts income at say £8000 I will give an estimate of 10000. hope this makes sense Smile

CogitoErgoSometimes · 19/09/2011 15:10

If it appears on the P11D then it's a 'benefit in kind' like health insurance or a company car and taxed accordingly. If it's money that appears on his monthly salary then it will be shown in his P60 - end of year earnings statement - and would be taxed as income. Unless they give him the allowance cash in hand or in exchange for receipts presented (money he's already spent) it's unlikely to be 'tax free'. The people to ask are probably his new employer.

constantlyworried · 20/09/2011 05:48

hi,
thankyou both.

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