Claiming expenses

Tefral

Have a specific question wondering can anyone help me.

My boss has a mad policy in work where by he wont pay the first 16km of any journey. Can I claim this back against my tax? and if so how?

2ndcoming

Afraid not, that's an issue between you and your employer so no tax relief in that regard. You can't get tax relief on what you're not paid.

barneystinson

2ndcoming wrote: »

Afraid not, that's an issue between you and your employer so no tax relief in that regard. You can't get tax relief on what you're not paid.

Not like you to get an answer so wrong!!

The OP can of course claim a deduction under section 114 for expenses necessarily incurred in employment.

However, if you want to go down that road, it means your employer cannot pay you any expenses tax free, so all mileage he does pay you has to be taxed.

Pawwed Rig

Indeed you can claim the expense up to the civil service rate.

Alan Shore

Pawwed Rig wrote: »

Indeed you can claim the expense up to the civil service rate.

Would the claim not be restricted to the actual cost incurred rather than the civil service rate.

barneystinson

Alan Shore wrote: »

Would the claim not be restricted to the actual cost incurred rather than the civil service rate.

Correct. Civil service rate applies (by concession as set out in SP-IT/2/07) for reimbursement.

If a person is electing to make a claim it needs to be by reference to actual expense incurred.

Tefral

So I'd be better off not claiming any part of the mileage through work and just claiming the full amount back retrospectively every year as a tax write off?

also say I had to stay in a hotel due to work can I claim this also?

How can I actually do this as a paye worker? I don't see the option on paye anytime.

Thanks for your replies so far.

Peregrinus

cronin_j wrote: »

So I'd be better off not claiming any part of the mileage through work and just claiming the full amount back retrospectively every year as a tax write off?

No. You are probably better off as you are.

Suppose you do a 50km journey. Your employer reimburses you for (50 - 16 34 km at (I assume) the civil service rate, which is, let's say, 45 cents/km. That's 15.30.

But if you switch to your alternative method, you get nothing from your employer, plus a tax deduction for the actual cost to you of driving 50km. Which is, let's say, 5 litres of fuel, about 6 euros.

That's a tax deduction, not a tax refund. Let's say your on the 40% marginal rate; the reduction in your tax bill will be 40% of 6 euros, or 2.40. You are much worse off.

cronin_j wrote: »

also say I had to stay in a hotel due to work can I claim this also?

Yes. But, again, what you claim is the actual cost of the hotel bill as a deduction from your taxable income. The reduction in your tax will only be (at most) 40% of this.

2ndcoming

barneystinson wrote: »

Not like you to get an answer so wrong!!

The OP can of course claim a deduction under section 114 for expenses necessarily incurred in employment.

However, if you want to go down that road, it means your employer cannot pay you any expenses tax free, so all mileage he does pay you has to be taxed.

I've never got my head around car expenses!

barneystinson

Peregrinus wrote: »

No. You are probably better off as you are.

Suppose you do a 50km journey. Your employer reimburses you for (50 - 16 34 km at (I assume) the civil service rate, which is, let's say, 45 cents/km. That's 15.30.

But if you switch to your alternative method, you get nothing from your employer, plus a tax deduction for the actual cost to you of driving 50km. Which is, let's say, 5 litres of fuel, about 6 euros.

That's a tax deduction, not a tax refund. Let's say your on the 40% marginal rate; the reduction in your tax bill will be 40% of 6 euros, or 2.40. You are much worse off.


Yes. But, again, what you claim is the actual cost of the hotel bill as a deduction from your taxable income. The reduction in your tax will only be (at most) 40% of this.

This isn't 100% correct either. The OP's employer can continue to pay them whatever reimbursement they want, but if the OP is electing to make a claim under s.114 any reimbursements paid by the employer must be subjected to PAYE.

So in your example above the OP has to pay tax at their marginal rate on the 15.30.

The point you're making is well made though, in most cases people are better off with the tax free civil service rates, than paying tax on that and making a separate claim.