Question

Does tax free income like night out money affect tax credits?

Answers on a postcard :slight_smile:

Logic says no but the tax man might think differently. The only real place to ask is the DWP.

fredthered:
Logic says no but the tax man might think differently. The only real place to ask is the DWP.

That’s what I thought being “tax free” but you never know.

Thanks for the reply.

Dan

Well the night out allowence affects other things such as housing benefit they regard it as earnings not expences, so if on payslip i would think yes they would see it as income, this is after all the government , and we all know how they work, fast at taking your wedge but very slow at paying out

My night out money goes into my bank separate from my wages and does not show on my wage slip at the end of the month. :wink:

Employers should pay expenses seperately or at least not include them on payslips unless they regard the N/O as part of your wage As not only are the tax free but are also only paid if you are sleeping in the cab

Dan_1986:
Does tax free income like night out money affect tax credits?

Answers on a postcard :slight_smile:

No

You declare your gross yearly pay and N/O shouldnt be in your gross figure. Only in your NET figure.

Problem - CSA asks for your NET figure.

tommy t:
Well the night out allowence affects other things such as housing benefit they regard it as earnings not expences, so if on payslip i would think yes they would see it as income, this is after all the government , and we all know how they work, fast at taking your wedge but very slow at paying out

They shouldn`t. I would ask for it in cash.

Dan_1986:
Does tax free income like night out money affect tax credits?

Answers on a postcard :slight_smile:

No, it doesn’t, it is not income. It doesn’t affect tax credits, it isn’t taken into consideration by the CSA, you can’t use it to get a mortgage. It is completely neutral money, whether it appears on your payslip or not.

Many thanks for the replys,

Ive been wondering this for a while now, I bet it could be a fight to not include it if n/o is printed on a wage slip.

Dan_1986:
Does tax free income like night out money affect tax credits?

Answers on a postcard :slight_smile:

Only if it exceeds the tax free amount.

The only thing you need to declare to tax credits is the bit on your P60 that says “Taxable Pay”.

tommy t:
Well the night out allowence affects other things such as housing benefit they regard it as earnings not expences, so if on payslip i would think yes they would see it as income, this is after all the government , and we all know how they work, fast at taking your wedge but very slow at paying out

They only include it if you’re daft enough to put down a tax deductible expense as income.

Well local council’s want your wage slips as proof of income, and they im sure counted the night out money as earnings, so they didn’t have to pay me anything, was a long time ago mind you,

We get ours in a nice plain envelope £25 cash (I don’t even tell the Mrs, so it’s all MINE !)

Night out & meal allowances, when I was working before retirement,where shown on your payslip as “non taxable allowances” as this was for reimbursement of out of pocket expenses and nothing to do with your wages or have any effect on any benefits you claim for.