Travelling and Subsistence Payments (Personal Tax Return)

[ChimpMaster]

Am I correct in assuming that all rail travel fares that I have expensed to my Ltd company are in fact eventually taxed on my Self Assessment?

I ask because the Travelling and Subsistence Payments are in section N on my P11D, and these values are then entered into "Expenses payments received and balancing charges" in the Taxable benefits and expenses part of the Employment form. In the final tax calculation, this number then gets added to the Income for the year and is hence taxable.

And I always thought my rail travel was a non-taxable expense

[Steven@Parasol]

Am I correct in assuming that all rail travel fares that I have expensed to my Ltd company are in fact eventually taxed on my Self Assessment?

I ask because the Travelling and Subsistence Payments are in section N on my P11D, and these values are then entered into "Expenses payments received and balancing charges" in the Taxable benefits and expenses part of the Employment form. In the final tax calculation, this number then gets added to the Income for the year and is hence taxable.

And I always thought my rail travel was a non-taxable expense

Hi there, just grabbed our MD (ClearSky) to run this past him.

Travel and subsistence expences are non-taxable.

You should enter them as a business expense on the P11D form

[pmeswani]

Am I correct in assuming that all rail travel fares that I have expensed to my Ltd company are in fact eventually taxed on my Self Assessment?

I ask because the Travelling and Subsistence Payments are in section N on my P11D, and these values are then entered into "Expenses payments received and balancing charges" in the Taxable benefits and expenses part of the Employment form. In the final tax calculation, this number then gets added to the Income for the year and is hence taxable.

And I always thought my rail travel was a non-taxable expense

As far as I am aware, travel and subsistence costs are non-taxable if claimed via the business. If you declare the travel and subsistence on your SA, then you should accure some form of tax reduction (or whatever the correct term is).

But it is all dependant on what dispensation that has been agreed with HMRC.

[Craig@Clarity]

If it's a business expense where you have paid for it personally on behalf of the company where your company has reimbursed you for the cost, it goes in section N but it's not taxable personally (not a BIK). It would go on your personal tax return under the employment page in box 16 but would be cancelled out under the same figure that's entered in box 17 of the employment page thus creating no tax charge.

[ChimpMaster]

If it's a business expense where you have paid for it personally on behalf of the company where your company has reimbursed you for the cost, it goes in section N but it's not taxable personally (not a BIK). It would go on your personal tax return under the employment page in box 16 but would be cancelled out under the same figure that's entered in box 17 of the employment page thus creating no tax charge.

Thanks all. I wonder if the SA form (online) has changed because I don't remember ever filling in box 17 in before! You have to choose a preceding option ("Do you wish to claim any employment expenses..." etc.) to get to this form where box 17 is.

I'm guessing I can't stick entertainment expenses under box 20? i.e. so these will definately be taxed at my prevailing rate.

EDIT: using box 17 just saved me about £2000 tax, thanks!

[ELBBUBKUNPS]

Thanks all. I wonder if the SA form (online) has changed because I don't remember ever filling in box 17 in before! You have to choose a preceding option ("Do you wish to claim any employment expenses..." etc.) to get to this form where box 17 is.

I'm guessing I can't stick entertainment expenses under box 20? i.e. so these will definately be taxed at my prevailing rate.

EDIT: using box 17 just saved me about £2000 tax, thanks!

Hi ChimpMaster, do you know if this is still the same in online SA ? I need to do the same so it cancels itself out ?

[ChimpMaster]

Hi ChimpMaster, do you know if this is still the same in online SA ? I need to do the same so it cancels itself out ?

Sorry mate this was 2 years ago so I wouldn't be best placed to advise. I'm sure one of our friendly accountants will be along to advise shortly

[ELBBUBKUNPS]

Sorry mate this was 2 years ago so I wouldn't be best placed to advise. I'm sure one of our friendly accountants will be along to advise shortly

No worries, first port of call was my accountant (one of the big ones on here), all they could tell me was they use there own software that doesnt match the online SA and just gave general headings to look for, not the answer I wanted.

[Jessica@WhiteFieldTax]

I've never used the HMRC online facility, however if it maps the box numbers on the normal SA return which I believe it does, then you want boxes 16 and 17 on the employment schedule.

Box 16 for the expense, mapping to the P11D, box 17 for the related deduction so you are not taxed.