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Posted Sun, 07 Nov 2021 20:32:25 GMT by Chipster
Hi, I’m a self employed tradesman, and the company I’m subcontracting to has offered to pay the car parking and clear air charges for the job I’m working on.. But the company are taxing me on both and pointing me to the cis340 3.11 Surely this can’t be right? I’ve already used money I’ve been taxed on to pay the car parking in the first instance, then I’m going to get taxed on the reimbursement. It wouldn’t be so bad. But all this extra money added to my gross payments has pushed me into the higher tax bracket. So I’ll be tax at 40% and then national insurance will also be effected. It just doesn’t make any sense Is there something the company should be doing so this reimbursement does not get included in the gross payment Any help would be appreciated
Posted Fri, 12 Nov 2021 17:17:07 GMT by HMRC Admin 10
Hi

The guidance is correct.

CIS340: 

3.11 Making a payment under deduction -Deductions must only be made from that part of the payment that does not represent the cost of materials incurred by the subcontractor.

Any travelling expenses (including fuel costs) and subsistence paid to or on behalf of the subcontractor must be included in the gross amount of payment and the amount from which the deduction is made.

Thankyou.

Regards.

 
Posted Sun, 14 Nov 2021 12:01:45 GMT by Chipster
What about Expenses which are reimbursed for employees? Isn’t there something similar for self employed?
Posted Tue, 30 Nov 2021 10:26:01 GMT by HMRC Admin 18
Hi,

CIS deductions should be made and subject to a deduction as part of the overall cost of labour for:
• travel expenses 
• petrol for travelling 
• accommodation costs 
• subsistence 
• are subject to a deduction as part of the overall cost of labour

Thank you.

 

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