Expenses - is that economic activity

[Chess]

Guyz,


If one recieves expense re-imbursements - does evidence/documentation of this prove economic activity ( and can this be included as earned income for HSMP purposes).

I mean if one drives 100 miles and claims 50p per mile, that is £50, whereas in effect the petrol for that journey could be £20.

I know there is depreciation and all that - but does documentation of the 'gains' constitute legitimate additional income???

[tvt]

If those expenses were taxable then they should count.

[Kayalami]

Chess,

Not quite sure I get your drift - are you intending to use expense reimbursments say from attending interviews? IMHO the reimbursments would be supplementary evidence to the relevant interview letters etc as opposed to stand alone evidence. The taxation issues would typically be covered by the employer although they are likely to appear in your end of year benefits breakdown.

[Chess]

If those expenses were taxable then they should count.

.



Are you serious? - it would be a nightmare working out what one owes the taxman on expenses!!!


I think there is some crap rule stating that you can claim up to something like £0.25 per mile and if you get reimebursed £0.50 per mile then one should pay tax on the £0.25

However, there is a limit and it also depends on the cc (power) of the car blah bl;ah blah blah...it is a bit more straight forward with company cars..

In a nut shell, I supppose one shouldnt bother with this nonsense of expenses and taxes on expenses.

TVT,

Are you implying that if I spend £100 on a hotel room and then the company reimburses me the £100 plus 'food expense' I should let the tax man know?

Kaya,

I would like to prove that money earned from 'expenses' reimbursement constitutes income

forexample..in the FLR (IED) documentation, I would say I earned £35K basic salary, £5K Flexi-benefits and say £3k expenses reimbursement

[Kayalami]

Kaya,

I would like to prove that money earned from 'expenses' reimbursement constitutes income

Right..now I get you. To consider such as income you need to have declared it for tax purposes - there is a rule for this which takes into account the distance travelled, the fuel used (petrol/diesel) and the cc of the car. I am sure a trawl through the inland revenue website would get you some answers - alternatively chat to one of your accountants.

[Chess]

To consider such as income you need to have declared it for tax purposes

Fair enough, but then you only fill in the Tax return/assessment forms at the end of the financial year - i.e thats when all income (including expenses) is declared.

What happens if one applies for HSMP (say renewal) before the end of the finacial year? (i.e before the requisite date for tax assessments/returns)??

Do you just specify that you have earned that income (and provide evidence) and then state that the income will be declared at the end of the financial year.

Kaya,....dont expect Mr/Mrs/Miss to be declaring his/her expenses every month

[Chess]

I am sure a trawl through the inland revenue website would get you some answers - alternatively chat to one of your accountants.

I have checked out www.inlandrevenue.gov.uk

Whatever car you drive (cc-size, diesel , petrol, or both diesel and petrol ) and the company pays a mileage allowance of 40p...

...then there are NO tax implications or NIC required if you do not exceed 10,000miles!!!

[Chess]

With Regards to Economic Activity...Apart from Contracts/Interview Letters/Salary slips......

....Does correspondence from Clients addressed to the company but for the attention of an individual constitute evidence of economic activity..


Foreaxample...If I recieve letters addressed to me relating to work issues (including meetings/request for quotations/tenders ..etc) - Can I include this evidence with the renewal application (i.e does that constitute economic activity??)

[Kayalami]

IMHO it does count as economic activity. Make sure you demonstrate the link between you and the (employing) company though.