Daily subsistence expenses

[Bluebird]

OK, be gentle as I'm still quite new to this. Does the BIK mean that the individual would not see the tax paid on payslips or self-assessment or anywhere else, but that the employer would pay up?

I'm not an accountant so I'm not entirely sure but I would guess there are two ways.

1. The Co will deduct the tax at source, ie your payslip shows £100 expenses, but you pay tax & NI so that you only get £75 in your pocket.

2. You get paid the £100, but have to declare it to HMRC [ P11D? ] and you'd get that as a bill ?

[Old Greg]

I'm not an accountant so I'm not entirely sure but I would guess there are two ways.

1. The Co will deduct the tax at source, ie your payslip shows £100 expenses, but you pay tax & NI so that you only get £75 in your pocket.

2. You get paid the £100, but have to declare it to HMRC [ P11D? ] and you'd get that as a bill ?

Thanks. Well, I never saw tax or NI paid, and I never declared it or was asked to or advised to declare it, and a lot of people are in the same position. Or, possibly the NHS has got this right and we've got it wrong? It's all so bloody confusing so I'll continue not claiming it.

[Bluebird]

Thanks. Well, I never saw tax or NI paid, and I never declared it or was asked to or advised to declare it, and a lot of people are in the same position. Or, possibly the NHS has got this right and we've got it wrong? It's all so bloody confusing so I'll continue not claiming it.

Your employer therefore probably reimbursed the expense AFTER they had paid corporation tax on it's profits, they may well have had dispensation from HMRC not to have to provide reciepts.

However if you were subject to an income tax investigation I believe that HMRC could well be within their rights to ask you for proof of reciepts, and if unable to do so you may well get a tax bill.

Look at it this way any expenses that you claim and your employer pays HMRC doesn't recieve any NI [ both employer and employee or Income tax - that works out at about 35% of the value ] - if you claim £150 worth of expenses that have not actually been incurred, you've deprived/defrauded HMRC of about £50.

Multiply that across a year £600 then by the number of employees that claim it and you've got a really big figure - do you think HMRC would be happy with that ?

[james14]

I should think that you will find that your employer (NHS) was settling the NI and PAYE liability - but without having to put it on your P11D.

[RichieC]

So your travel pattern is:

Home -> Work -> Home ?

According to HMRC guidance notes there is no subsistance allowable on this pattern

Even if "Home" is Your Registered Office address and "Work" is a temporary place of work where you are working on a contract for a client?