Job Discussion Forums

[XiaoWren]

So my first university paid my flight and travel allowance in cash thereby avoiding tax me. This year my new university paid these allowances through my bank account with my salary and they were taxed.

I raised this with the finance department, but they are not moving on it.

I understood that in general allowances and expenses are not taxable (in most countries).

Any ideas or info on this? Thanks

[Non Sequitur]

I don't think 'General allowances' and 'expenses' can be lumped together. Refunding an expense should not be taxable as all that is happening is that you attended to an item that the employer would normally pay for. Usually you would have a receipt.
General allowances would normally be regarded as taxable income.
That's why I've been concerned to see airfares devolve over the years from a refund to an allowance. Clearly exposing them to tax.

[XiaoWren]

Well, I'm using the terms 'allowance' and 'expense' imprecisely and incorrectly.

But anyway the finance dept said 'there is no real ticket' (I had not flown anywhere), whereas there was a ticket in the first example - although I don't recall producing it.

Ditto the travel allowance. I didn't produce any receipts in either case but wasn't taxed in the first example.

[getbehindthemule]

I know my airfare allowance is tax free as long as I can produce e-ticket and boarding pass. If I cannot, it is taxed at 20%, which kind of sucks!

[Non Sequitur]

[Alien abductee]

[lionheartuk]

Can't see any problem with being taxed on something that is given freely
I get airfare and am taxed on it but I am happy to be given something for nothing especially when I am not going anywhere by air.

[XiaoWren]

[getbehindthemule]