Anyone know about business tax/expenses etc? Would my employer have to pay tax on my travel expenses? Basically the company I work for sold the venue I was in and offered me a job in another, saying they'd pay for my travel expenses. Now 2 weeks in they've turned round and said they wont pay travel expense as they have to pay tax on it, but they'll give me a payrise to cover it. Although this means I'm now the one paying more tax due to a higher salary and am actually coming out with less than I was at the old place. Just wanting to get as much info on it as possible before going back and telling them to stick it up their arse and try again.
if your employer is paying you travel expenses he will be able to set that against tax, not pay tax on it. they're avin a larf mate
Doesn't really matter whether they pay tax on it or not, from your point of view, if you're working at the new place permanently, the travel expenses are a taxable benefit. So you either pay tax on the travel expenses, or pay tax on the increased salary. Either way you should be taxed on it, irrespective of how they've misexplained it to you.
thats what i thought mate Frenchwilliam it was never really that official. I gave them my train tickets at the end of the week and they give me the cash and the tickets go in with their reciepts/small outgoings etc as far as I know. Sorry like i really dont have a clue with all this carry on If they pay for me to get to work I have to pay tax on that?
Travel expenses reimbursed to you are only tax free if the travel is temporary. If you're working at the new lace permanently then it's just your normal commute and if they pay your travel then that's a taxable benefit just the same as your salary. Yes, even if it's cash in an envelope. In theory you should be paying PAYE and NIC on it. Employer should be declaring it and paying NIC on it too. Basically for you, it shouldn't make a difference either way, cos you should be paying tax on either increased salary or cash refunds. In reality you're not gonna fill out a tax return to declare travel expenses (which is illegal btw), so you'll suffer the tax on the higher salary.
