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If you're reimbursed for expenses you incurred as part of your job you'll have to pay tax on the payments. HM Revenue & Customs (HMRC) will usually include the expense payment in your tax code and collect any tax due through PAYE (Pay As You Earn). You may get tax relief on these expenses - these will also show in your tax code.
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If your employer has reimbursed you for expenses you incurred in carrying out your job - such as the cost of professional subscriptions or the use of your home telephone - you will have to pay tax on the payments you have received. However, you may also be able to get tax relief for your expenses - this has the effect of cancelling out the tax you are due to pay.
Both the expense payments and any tax relief you're due will show on your PAYE Coding Notice - as described below.
The expense payments appear in the section on your PAYE Coding Notice called 'Items that reduce your tax-free amount' - under the headings 'Taxable expenses payments' and 'Telephone'.
Any tax relief you get on expense payments will show in the area called 'Allowances and reliefs'. Typical entries might include:
You've paid professional subscriptions of £210 to an approved organisation. You have to belong to this organisation for your job so your employer reimburses you the money:
So, you have tax-free income of £9,440 and your tax code is 944L.