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Where Taxpayers and Advisers Meet

Tax on Expenses Change

Posts: 1
Joined: Mon May 21, 2018 10:31 am

Tax on Expenses Change

Postby whitelightening444 » Mon May 21, 2018 10:36 am

I have been working for a company for 8 years. I initially worked onset with a client for them 5 days a week with a normal take home pay. They lost the contract with the client and I was offered a position to stay with the company (possibly 2013) where my permanent base would be at home at I would work a couple of days in a Leeds where required.

This was reflected in my contract where it stated that my permanent place of work was at home and I would be required to be in the office a minimum of two days a week. Because the Leeds office was not a permanent place of work this point, they agreed to pay full expenses; including to and from the office (fuel and train tickets), lunch, parking at the station. This has occurred for many years.

At the end last year I had a meeting with one of my bosses, who informed me that due to an audit which might happen in the company and the law changing I was seen a someone making a regular journey to the Leeds Office (despite my contract saying minimum of two days) therefore it makes it permenant. Therefore they would have to amend my contract and I would be taxed on these two days but advised this would be minimal. They said the law had changed recently and as I had been doing this for so long it needed to be taxable expenses. So I signed the contract which stated:

"From Nov 2017 your normal place of work XXX for a maximum of two days a week, you will be home based for the remaining three days. Expenses can be claimed subject to tax and NI for the two days working at XXXXX, any other expenses can be claimed as normal."

Of the understanding that I would be 'minimally' taxed. So from this point I submitted two sets of expenses taxable and non taxable. I ended up working from another office, which I submitted expenses for that were non taxable so hadn't really noticed this change and its effect on my wages (to my error).

It is only now after confirmation from payroll that I have realised I am being taxed 35% on my expenses, which equates to a loss of £200 a month which I wouldn't class as minimal like I was advised. I have realised since the end of last year I am out of pocket through taxes £900 - which isn't minimal.

I have raised this with HR in writing who haven't responded well or despite me giving them figures have not correctly read my email and instead of reading it taxed £200 a month, read it as it was £200 expenses and tax was £60.

I am not sure what to do whether to go back to HR or my boss. They have offered me alternatives to make it cheaper now I have mentioned it but it doesn't help the fact that since end of last year I am out of pocket by under £1000.

Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax on Expenses Change

Postby bd6759 » Mon May 21, 2018 9:22 pm

It seems that you have been given £600pm tax free in error for nearly 5 years. That is a lot of tax you have not paid when you should have. I am not sure what your question is. Are you looking for advice on how to pay that tax back?

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