Hi,
For the last 12 months I was working for a company driving class 2’s who paid £24 a night for “overnight” as shown on my payslip. I recenrtly received my P60 and saw that I my income including the overnight payment was taken as my total income for the year and I was taxed on all of it - including the overnights. I was always under the impression that this was paid tax free upon checking with one of the lads im still in touch with he confirmed we were taxed on nights out as the company didnt/wouldnt fill in a required form with HMRC which meant they were required to put it through as taxable income.
Incidently I have started my new job who pay £26.20 which is made as a separate payment to my wages and of course is tax free!
I had a look at some guidance from hmrc and it seems that employers can pay £26.20 tax free if the required form is filed with them by employers.
I’ve had a look online and it seems I can do a self assessment and claim “other expenses” which includes travel and sustinence - my question is has anyone done this after being taxed out on nights out before I go and do it - i keep getting calls from these companies who want to do it for me and thats the only reason ive looked into it - i wont use them as ive heard horror stories of people having to pay 0000’s back. But by rough calculations of 4 nights out a week for 45 weeks a year taking off bank hols and holidays thats a good £4k that i’ve paid tax on that maybe I shouldn’t have■■?
Any experience or info on this would be muchly appreciated. TIA
You could always ring the inland revenue and ask them, I would guess it depends on how it is entered on your payslip.
If it clearly says night out and shows tax you may have a chance.
That’s an assumption not based on fact. I only do occasional nights out and add them on my timesheet as an extra charge, I pay the tax as I don’t want my lot thinking £26.20 is the maximum they can pay me. I just book them at £50 and pay the tax.
Of course they bump up my earnings a little so average holiday pay gets a little lift too!
8wheels:
You could always ring the inland revenue and ask them, I would guess it depends on how it is entered on your payslip.
If it clearly says night out and shows tax you may have a chance.
That’s an assumption not based on fact. I only do occasional nights out and add them on my timesheet as an extra charge, I pay the tax as I don’t want my lot thinking £26.20 is the maximum they can pay me. I just book them at £50 and pay the tax.
Of course they bump up my earnings a little so average holiday pay gets a little lift too!
Yeah, on my payslips it show’s as “overnight” “units” (i.e how many i’ve done) then “rate £24” finally “value” which shows the total amount over the month in £’s
I just think why should I pay tax on it when it’s all spent on food at ridiculour prices in motorway services and I spend more than I actually get anyways!
Just in case you’re near a tax threshold, these payments might bump you up and result in a higher rate being paid on proper earnings that shouldn’t be getting hit by the next band up.
Another vote for “talk to the revenue man”, you might even come away with an online account which, from what I’m led to believe, makes life much easier - buyer beware though, it’s a Gov computer system - it will not be all smiles all the time.
I do so few nights out that it wouldn’t be worth the bother trying to get them or part tax free to save paying the higher tax.
But yes if I did them regularly I’d look into it