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I was wondering if you could explain to me why additional cost of commuting for 2016/2017 of 1,800 are not deducted from employment income in following example? According to the OT F6 course notes. Travel expenses from Home to Temporary workplace should be deducted from employment income.. Why this 1800 is not deductible? it is not making sense to me
Kaplan exam kit, question 3 (Ali Patel)
Ali Patel has been employed by Box plc.
1. Ali’s annual salary is 29,000
2. Ali commutes on a daily basis using his private motor car.
3. He will be paid additional salary of 500 per month
4. Box plc will pay Ali an allowance of 38p per mile for the 1,600 miles that Ali will drive each month commuting to the office
5. Ali’s additional cost of commuting for 2016/2017 will be 1,800Solution:
Salary (29,000 + (500*12)) = 35,000
Mileage allowance = 496
Employment income = 35,496less: P.A. = (11000)
Thank you in advance.
That is because relief is not available for normal commuting costs.
In general terms relief is only available for the costs that an employee is obliged to incur in traveling in the performance of his duties or in traveling to the place he has to attend in performance of his duties.
The fact that Ali uses his private motor car on business journeys makes him eligible for Mileage allowance.
But I’m unsure of how 496 mileage allowance is calculated .
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