My missus had found out that she'd been underpaid in her travel expenses for the last couple of years to the tune of £4,000. They've added it to her payslip but she's lost half of it to tax. Can she use the last couple of years' travel allowances in order to get this money back? If she'd been paid at the right rate all along she wouldn't have had any of it taxed. Perhaps a letter to the taxman would help?

shouldn't be taxed, it's expenses incured whilst on business.

She's already paid tax on the original income, so she shouldn't be taxed on the reimbursment. Doesn't her company have an expenses system?

Phil

Aye, my expenses don't go anywhere near my payslip.

Submitted and paid seperately.

Hello

As mentioned above, expenses whilst incurred on business are generally not taxable. So the company is at fault for putting them through her payroll.

Certain "inconvenience" payments for being abroad (which my company doesn't pay (sigh...!)), are taxable. So it depends what you mean by "travel expenses".

Steve.

Sorry chaps should have explained. She was being paid petrol allowance, which as you know is capped annually