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??
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??
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