You fellas that run a few trucks and pay night out money to drivers:
Does the say £25per night out tax free eventually be claimed back from who, HMRC??
If yes,
is it done through books at tax year end 5th April and or some sort of monthly company expenses thing??
Same question also applies to say a £5day tax free meal allowance payment to drivers??
Would I be right in thinking that both allowances would be offset against Ltd Company Corp tax bill??
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No, it’s a myth that the night-out money can be reclaimed from HMRC (or anybody). The only way that an employer will (sort of) reclaim any of it is that if he pays out £25 in night-out money, then he will make £25 less profit and so will pay £5 less in tax.
Harry Monk:
No, it’s a myth that the night-out money can be reclaimed from HMRC (or anybody). The only way that an employer will (sort of) reclaim any of it is that if he pays out £25 in night-out money, then he will make £25 less profit and so will pay £5 less in tax.
How do all these “tax expenses” claim back companies state they get you “extra” night out payments from HMRC??
I got a tax expenses rebate and only been doing night’s out since Jul 2014! !!
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Companies agree what the tax-free night out allowance can be with their local HMRC office. For example if the agreed payment is £25 but the company decides to pay £30, then the driver will be taxed on the additional £5.
We’ve been told at work that tax free allowances are ending and we will soon be paid a higher amount to allow for the tax to be removed.
Big Truck:
Harry Monk:
No, it’s a myth that the night-out money can be reclaimed from HMRC (or anybody). The only way that an employer will (sort of) reclaim any of it is that if he pays out £25 in night-out money, then he will make £25 less profit and so will pay £5 less in tax.How do all these “tax expenses” claim back companies state they get you “extra” night out payments from HMRC??
I got a tax expenses rebate and only been doing night’s out since Jul 2014! !!Sent from my SM-J500FN using Tapatalk
I don’t know about claiming back night out money from them, but I’ve claimed back other allowances. All that happens is you get a rebate of the extra tax you paid because these allowances weren’t included in your pay.
Like Harry said the company pays night out money, for them it means they don’t have to get and process receipts from drivers for expenses claims, which would be an administrative nightmare for the haulage industry and I dare say the HMRC.
In my job I’m given a cash float and have to provide receipts and fill out an expenses form, to account for the money spent, I’ve just come back from a 4 week trip, I have receipts for meals, parking, taxi’s, etc which will now get checked by the company accountant against my expenses claim.
mucker85:
We’ve been told at work that tax free allowances are ending and we will soon be paid a higher amount to allow for the tax to be removed.
I don’t think they are doing away with it, but this article might explain why your company think they are.
Senario:
A trucking company have drivers that are doing 4/5night’s out a week but they aren’t paid ANY night out money at all.
They are on salary and take home pay would be above average for the area and on duty hrs worked.
Do said drivers have any legal right to a tax free night out payment??
If they do and if this company offer to start paying night out money could it be backdated for a certain length of time?
Ltd Company could take this backdated night out payments out of profits therefore pay less Corp tax■■?
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I think you need a Solicitor specialising in employment or tax law.
but my thoughts on it are If you agree to terms and conditions that don’t include night out money then I don’t see how you can later claim the night out money from the company.
The rate set for night out money is only the maximum rate the HMRC will except as a tax free allowance for night out expenses, it’s up to companies if they pay and how much they pay.
However you might be able to claim the tax back from HMRC for a proportion of you wages that you could have got as a tax free allowance for nights out, the same way as you can claim for washing your uniform.
I don’t see why anyone, whatever the job they are doing, would in their right mind agree to overnight away from home without either receiving an allowance, having receipts for expenses paid, or all expenses charged to a company account. Those expenses are related to costs, or an allowance for assumed costs, incurred solely through being away from home.
The answer for those companies who bleat about not being able to afford the cost of such payments is simple: either don’t accept any work which involves the vehicle and driver not making base every night, or get out of transport altogether.
cav551:
I don’t see why anyone, whatever the job they are doing, would in their right mind agree to overnight away from home without either receiving an allowance, having receipts for expenses paid, or all expenses charged to a company account. Those expenses are related to costs, or an allowance for assumed costs, incurred solely through being away from home.The answer for those companies who bleat about not being able to afford the cost of such payments is simple: either don’t accept any work which involves the vehicle and driver not making base every night, or get out of transport altogether.
It’s not that they won’t pay night out money,
Think it’s down to fact they didn’t know the allowance exsisted or were unsure how to implement same for drivers.
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Night out money should be built into the rate submitted to the customer
So if it carries on that said driver doesn’t get paid ANY night-out money from company but still does 4/5nights-out per week.
Could he claim back this tax free expense/allowance via the PAYE P87 form or a direct PAYE tax return as £26.50night would be beyond the £2.5k expenses allowed via P87 for tax year??
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Big Truck:
So if it carries on that said driver doesn’t get paid ANY night-out money from company but still does 4/5nights-out per week.
Could he claim back this tax free expense/allowance via the PAYE P87 form or a direct PAYE tax return as £26.50night would be beyond the £2.5k expenses allowed via P87 for tax year??Sent from my SM-J500FN using Tapatalk
You need to ask a tax expert, but I don’t think you’ll be getting the £26.50 for each night out, just the tax you paid on it.
muckles:
Big Truck:
So if it carries on that said driver doesn’t get paid ANY night-out money from company but still does 4/5nights-out per week.
Could he claim back this tax free expense/allowance via the PAYE P87 form or a direct PAYE tax return as £26.50night would be beyond the £2.5k expenses allowed via P87 for tax year??Sent from my SM-J500FN using Tapatalk
You need to ask a tax expert, but I don’t think you’ll be getting the £26.50 for each night out, just the tax you paid on it.
Bit confused as last company paid me £30nightout tax free but I wouldn’t be able to backdate the £26.50nightout (amount agreed via RHA and HMRC for night out in sleeper cab) for genuine nights-out I’m doing now but not getting the tax free allowance??[emoji52]
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The £26.50 is the rate agreed between the industry and HMRC, that an employer can pay in lieu of night out expenses without having to pay tax on it.
So all the taxman is doing is losing the tax on that money, they are not paying you the night out money, your employer pays that, so as far as I understand, all you can claim back is the tax they took from your earning on the value of a night out payment.
As for getting £30 night out money, does it also include a daily meal allowance?
muckles:
The £26.50 is the rate agreed between the industry and HMRC, that an employer can pay in lieu of night out expenses without having to pay tax on it.So all the taxman is doing is losing the tax on that money, they are not paying you the night out money, your employer pays that, so as far as I understand, all you can claim back is the tax they took from your earning on the value of a night out payment.
As for getting £30 night out money, does it also include a daily meal allowance?
I think the £30 did include a “built-in” meal allowance as HMRC haven’t looked to change my tax code etc even though I was £4.50 over the tax free limit each night.
Will speak to an accountant for advice about if a nightout payment could be claimed as a “PAYE expense/allowance” as classed “mobile worker” by HMRC.
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