Tax Relief question for healthcare worker - uniforms, use of own car....anyone in the know, can i pick your brain please

[WheelyCote]

I've just applied for tax rebate for
care of uniforms and subscription online for the past 4 years.

The questionnaire also asked about use of own car. I do use my own car. I do get mileage paid but get taxed on this which is annoying ( i pay tax at the pump then again in my pay). Can i apply for tax relief do you think for car?
Again I often need to pay for car park tickets. I do get reimbursed but again im taxed on it (so taxed at point of purchase and again in my pay)

Hope this makes sense. Any input appreciated

Mileage and car park tickets reimbursed are expenses and shouldn't be taxed as income. Are you sure they are?

Oh yes. The expenses get added to the take home gross pay then income tax and Ni is taken from this lump sum. Infuriates me.

because its added into gross pay, it means my p60 shows Ive earned more than I actually have. Im now paying back HMRC Tax credits because they go off the P60 and not salary.

Bumping

Reimbursed expenses should not be taxed. You need to talk to your payroll dept. if this happening.

In general terms, HMRC views expenses incurred as a direct consequence of one's job as not being taxable. You're carrying out your duties on behalf of the company, so cost incurred get reimbursed to you. This includes uniform, because it isn't clothing you'd wear on a night out, you aren't benefiting personally from it.

Anything where the employee gains a personal benefit from it, is a benefit in kind and therefore income tax is payable and reported on form P60. This might include health insurance, shares, even things like free lunches on a regular basis (unless occasional work meetings) could be viewed as subject to income tax.

The items you've listed shouldn't have been included in your income to begin with - is your payroll department doing that? I'd query the matter with them. You are right you should only be paying tax once on those expenses. You aren't benefitting from parking or business mileage (provided you can evidence you did those miles wholly in the execution of your duties.). Normally a company will issue uniform, so the employee doesn't have to foot the bill.

Apologies I meant P11D for taxable benefits, P60 is end of year tax

It's the NHS they do it for all of us in my area at least.

How do I challenge this with such a big organisation??

Still waiting for some pay from January. They gave people a cash incentive to work extra shifts. Received normal pay but still not the incentive. They frighten me a bit because they make there own rules

I've double checked and I'm definately paying NI and inc tax on the expenses.

I've had a Google and I've read that
^
Where an expense is reimbursed, Hmrc has to be satisfied that the expense is allowable for tax purposes, otherwise the reimbursement is treated as additional taxable income
^
Any advice on how to resolve greatly appreciated

How are you getting your expenses approved and reimbursed? If its through an expense system then normally that submission presupposes that your expenses are allowable as business exps so not subject to tax/NI.
Can you discuss with your payroll and say these are expenses - it isn't benefit in kind. They should know the difference

You need to speak to payroll.

Whilst less usual, employers can reimburse expenses that are not tax deductible. In the case of mileage, for example, they can reimburse mileage for ordinary commuting, ut this would be taxable and payrolled in the normal manner - it is effectively just additional renumeration.

Presumably, however the mileage you are claiming is not related to ordinary commuting?

Are you doing over 10k miles per year? Is it only work milage or does it include your commute?

Also what do you get per mile.

You can claim the uniform allowance on a tax return, or you can ask HMRC to adjust your tax code to include it.

Regarding mileage, the HMRC rate is 45p per mile (first 10,000 miles). If you are paid less than that, you can claim the higher rate on your tax return, so you put what you have received, and what you can claim. You then get tax relief on the difference between the two.

It doesn't have to be reported to HMRC if it meets certain conditions. It is taxed if it meets certain criteria, such as a higher rate being paid than 45p.

So, on this questionnaire, you need to put the total amount received for mileage/parking, and the total amount paid out, if it is more than what you received.

If you are doing one of those online firms, they will charge you a fortune to do it though. You could telephone HMRC yourself and go through it with them for free.

thanks all.

Its 56p mile then drops to 20p a mile after so many miles....think its after 3500 but id have to double check.

i'll speak with payroll tommorrow and then hmrc. Even when its dropped to 20p mile, im still taxed. It could just be all going over my head.

Ive completed the online form for uniform and the yearly mandatory subscriptions.

i kind of understand the higher rate mileage which may explain things.

not the parking though.

since ive submitted a form already for uniform and subscriptions, can i put another form in for the same year but for the using own car , mileage etc

You get taxed on the difference between 56p and 45p - that’s the missing information here.
It becomes taxable above 45p - don’t go in guns blazing with hr as they’ll be doing it properly but in a slightly less conventional way. You just need to know their system.

Where is it you’re parking?

Daisy expenses are run through an expense system

Clash mileage reimbursement is for the mileage used to carry out the work itself. We don't include the commuting to and from base.

Sprinkles Im not sure how much ive paid out on fuel to do the work. Should I be keeping a record?

No, you’re paid an allowance on milage not fuel. Your fuel costs are irrelevant.

no, it is based on miles, so you divide the total received by the mileage rate, and then times it by 45p or 25p, but that is not going to work if you have done over 10K miles at different rates.

You presumably keep a record of mileage to be able to advise them of the amount, so should have the necessary figures? Are the number of miles claimed shown on your payslips,

and you do pay tax on anything above 45p per mile.

Sprinkle Last tax year I did 5425 miles and paid tax and NI on both the 56p rate and the 20p rate after it dropped

You need to clarify wIth payroll and hmrc.

Wheely you need to keep detailed records of what mileage you actually have to do for your job, and split that from the mileage to and from your office/building location. You cannot claim reimbursement to get to and from your office, that is commuter costs which are not classed as business expenses. If you are registered as a home worker then it's different, but HMRC will need proof your organisation has approved you to be registered as a home worker.

Anything you submit to your expense system is by definition business expenses.

Have just seen the update that they give you an enhanced rate of 56p, then I agree with flamingo that it is the uplift only that is taxed, because HMRCs recommended rate is 45p/mile.

Daisy all mileage claimed is only for work reason. We don't claim commuting miles.

I've got the detailed mileage.

I think its the full amount that's taxed. For example my pay will say

100 pound salary
100 pound expenses
200 gross

20 tax
20 ni

Net pay 160

I will double check with payroll and Hmrc though because it's probably over my head.

I'm classed as an agile worker. This can be in hospital, community or work from home.

Can I claim tax relief on car ins, broadband, MOT, tyres?

Sorry for the 101 questions. I work full time and do an extra shift on a weekend (6 days a week). If there's a way to save money...I'm keen to do it to take some of the pressure off