Chargeable Expenses being taxed on my payslip!

[Lance]

Got messed around basically ;

1) Recruitment Agent initial call to say role was hybrid working
2) Client Interviewer said role was based OnSite in office and I know particular role can only be done OnSite
3) Recruitment Agent insisted his contractors at Client are all hybrid, mostly remote working 5 days at home so Client Interviewer doesnt know what he is talking about, he confirmed with the contractors that role would be hybrid.
4) Job Offered : Teams Call with Recruitment Agent and Account Manager - stated to them if role was indeed fully Onsite that I wont be able to do public transport travel 5 hours a day to get to and back from site.
5) First Day Teams Call with Client : Yes its hybrid, first 2 months netflix fully at home, then remaining 2.5 months OnSite every day.
6) Got a sorta apology from Recruitment Agent, Account Manager agreed for Agency to contribute to Uber fare to cut down my travel time by half.

agency paying your expenses out of their margin?????
Strewth.... They must have a really good margin..

[eldy]

How did you manage that?

Got messed around basically ;

1) Recruitment Agent initial call to say role was hybrid working
2) Client Interviewer said role was based OnSite in office and I know particular role can only be done OnSite
3) Recruitment Agent insisted his contractors at Client are all hybrid, mostly remote working 5 days at home so Client Interviewer doesnt know what he is talking about, he confirmed with the contractors that role would be hybrid.
4) Job Offered : Teams Call with Recruitment Agent and Account Manager - stated to them if role was indeed fully Onsite that I wont be able to do public transport travel 5 hours a day to get to and back from site.
5) First Day Teams Call with Client : Yes its hybrid, first 2 months netflix fully at home, then remaining 2.5 months OnSite every day.
6) Got a sorta apology from Recruitment Agent, Account Manager agreed for Agency to contribute to Uber fare to cut down my travel time by half.

[northernladuk]

Ah ok, understood - as I am being picked up from home and dropped off to work and vice versa at end of the day and its being paid for by the Recruitment Company I have to pay tax on that benefit. Fair Enough, I will make sure I enjoy the rides.

How did you manage that?

[eldy]

Ah ok, understood - as I am being picked up from home and dropped off to work and vice versa at end of the day and its being paid for by the Recruitment Company I have to pay tax on that benefit. Fair Enough, I will make sure I enjoy the rides.

[northernladuk]

I think you are bloody lucky to get Uber expenses paid in any way shape or form so even if you have to pay a bit of tax on it then you are head and shoulders above 99% of inside contractors that don't get a penny.

[SimonMac]

What makes you think you can get money from your client and not pay tax on it?

[eek]

The Umbrella company is correct - because the journeys are to and from your (current) main place of work its just standard commuting and so the journeys are not tax deductible hence the expenses just form part of the gross payment that is used to calculate your taxable pay.

BTW there is little point changing umbrella firm here as what the umbrella firm is doing is correct.

[eldy]

Hello,

I have an agreement with the recruitment company that they will pay upto £?? a month for my Uber Expenses to and from work.

Umbrella Company invoiced accordingly for pay and approved expenses for January. This paid this yesterday, confirmed in a separate entry for expenses in the payslip from the Umbrella, but looking at the payslip it seems I have been taxed on it and not received the full amount expected!

I have contacted the Umbrella Company who stated following

"I have checked and can confirm that as per HMRC regulations the travel to and from work is not able to be claimed as a non-taxable expense and these have been processed accordingly.

further information please see https://www.gov.uk/tax-relief-for-em...,a%20temporary %20place%20of%20work. "


I'm not looking for tax relief on the expenses! I just want them to be reimbursed to me fully as agreed and paid for by the recruitment company. The Umbrella Company should simply pass this on to me without that amount being taxed right?

I have looked at the Umbrella Company website for details on how the expenses should be dealt with and found the following ;

"Expenses can still be paid – but these must be approved by your recruitment agency and paid over in addition to your normal daily or hourly pay rate. This matches the treatment that permanent, full-time employees can expect – expenses must be submitted, approved and reimbursed on top of salary. These are known as chargeable expenses."

I replied back with the above but the Umbrella Company is still sticking to what HMRC say and what Payroll manager have told them. This is quite a large Umbrella Company.


"As discussed I can confirm that the expenses will be re-chargeable as in we will invoice the agency for them, however when it comes to paying them to you we are required to apply the tax if required.

The travel to and from work is classed as a taxable expense and therefore when this is paid to you we have to apply the tax."


So who is correct here and where do I go now to get this resolved??