Nights out who pay's

hi guy’s thought I would ask in this section,could somebody tell me how night out money is reclaimed by an employer, my understanding is and I stand to be corrected 1 night out money or subsitinence allowance does the company claim any of this back as it’s a tax free allowance to the employee? or is it an out of pocket expense for the company? 2 any parking expense is also claimed back the reason for asking is over the year’s different employer’s have dragged us back to the yard as a moneysaving exercise why should we pay parking and night out when we can park you up in the yard for free help apreciated

Night Out money is, as far as the employer is concerned, part of the cost of doing business. The only way he can “claim it back” is to take account of it when pricing up a job and get the customer to cover it. Otherwise it just goes into the Profit & Loss account as a business expense and is offset against his Corporation Tax liability (i.e. paying out £25 reduces his gross profit by £25 and so he pays a fiver less in Corporation Tax).

2 reasons …
1 why should they pay you if they can park you up at the home depot and pos use the truck while your at home
2. some company’s have the depot as a separate business so charge the haulage company a parking fee.

its a paper trail that earns a separate income …
and if you have a workshop guess what … yep another rental income

As said comes out employers bottom line on profit
As a cost to business

Only thing employer saves as it’s non taxable
There is no employer ni to pay on it

Can’t claim it back off hmrc or anyone

thank’s for the reply’s guy’s and nick using the truck doesn’t come into it I was under the impression that it being tax free the employer claimed it back from hmrc and the parking was claimed back also :slight_smile:

samsgrandad:
thank’s for the reply’s guy’s and nick using the truck doesn’t come into it I was under the impression that it being tax free the employer claimed it back from hmrc and the parking was claimed back also :slight_smile:

Ok but some owners liked to drag you back for using the truck though and like I said some have the yard as a separate business so cross charge parking etc as additional income maybe having the yard in the wife’s name tax fiddle and all that :wink:

The fact that it is “tax free” (or, more accurately, “tax allowable”) doesn’t mean that HMRC (or indeed any other government department) is going to re-imburse anyone who pays it.

Basically the government (usually) don’t like companies paying for stuff as any sort of perk for employees that otherwise the employees would have to pay for it themselves out of their after tax wages. There are strict rules on what is allowable, as mentioned, and stuff like even staff Christmas parties only have a certain allowance.

This is where company car tax stems from the government argues that if the company didn’t supply a car the employee would have to buy one out of their wages, which the government would get tax on and they would also get VAT on the car sale which the employee would not be able to claim back.

This is all very strict right up until the point they panic that drivers aren’t going to pay for DCPC out of their own pockets and all this is conveniently ignored to avoid the embarrassment of DCPC implementation failing.

Companies pay for all sorts of job-related training without HMRC so much as batting an eyelid.

Roymondo:
Companies pay for all sorts of job-related training without HMRC so much as batting an eyelid.

If a company wants a warehouse guy to drive the forklift or even promote him to truck driving that’s all well and good. The test applied is generally would the employee be compelled to spend their private money on it if they didn’t work for the company.

Not only is it the case with DCPC that they clearly would it’s actually in the legislation that provision is the driver’s personal responsibility. As an example it wouldn’t be allowable for employers to pay for medicals, replacment driving licence photocards if lost that type of driving licence related cost. DCPC being provided by the employer is a perk of the job.

But some employers do pay for medicals…