Is it correct to have my expenses paid back to me via my payslip?

Question

For example, my payslip may say:-

Salary £500

Expenses £200

Total showing on payslip - £700

(Taxes etc., are taken from Salary but (hopefully anyway) not from expenses)

IS THIS CORRECT.

IF NOT, WHY NOT & HOW SHOULD IT BE DONE? Thank you.

Answer 1

you will still get taxed

Answer 2

yes this is common practise in the UK

Answer 3

Expenses are often tax deductable, so you employer would be breaking the law if they do not tax them.

Answer 4

If it's listed separately as expenses I don't see the problem as it's clear that wasn't part of your salary.

I've never had expenses refunded that way so perhaps it is unusual - however I don't see how it could be wrong or cause any problems, aside from making sure you are taxed correctly (which you've said isn't the issue).

Aside from tax payslips are only used to prove your income for a mortgage application etc so you only need to worry if it looked understated.

Answer 5

Yes it is correct. Tax should not be deducted from the expenses as long as you provide your employer with receipts

Yes it is pefectly legit to look that way and this is usual practice.

I don't really see  why this is bothering you

Answer 6

When I did casual PAYE work I was paid like that. I don't see anything wrong in that but in most jobs expenses are dealt with separately.