Kevin Mc

I now have to fill in a self assessment form for the massive amount of money I earn

I've just started claiming a daily subsistence allowance when working away with work.

I presume this will have to go onto my next self assessment form as income?

If so I have a question:

Say my allowance is £20, and I spend £11 (with receipts) will they tax me on the remaining £9? Just want to find out right at the beginning, so I can account for any spending - don't want to be paying any more tax than I should!

Thanks.

pbee

there are boxes on the form for exepsenses which you will put in the total money received, on the next page you put in a total exspense for subs in doing your job.

so if the total money received was £800 but you only have used £600 receipted for subs, they will tax you only on the £200 profit you have gained.

if you spend the total £800 then you will have no extra liability.

(as long as you fill in the form right)

dr_ming

Depends on the ageement your company has with the IR. The company I work for has (miserly) agreed rates for overnight stays in most countries (e.g. UK - £96, Germany - Eur167, USA - £125 etc. etc.). I am only required to produce a hotel receipt to prove I was away overnight, other than that, the money is mine to do with as I like .

Also, your company may have an expenses dispensation from the IR, meaning that they do not have to detail your expenses payments on your P11D.

If they DON'T have such a dispensation, make sure the figures you put on your tax return agree with those on the P11D, or it may prompt an audit.

If they DO have such a dispensation, AND your company has subsistence rates agreed with the IR (like mine does), you are not obliged to enter any details about your expense payments unless you are declaring some of it as taxable income, or want to claim tax relief on underpayments (e.g. mileage rate for using your own car).

Hope this helps, Ming.

[Edited by dr_ming - 1/12/2004 2:05:51 PM]