Employees travelling on business need to eat. Keeping track of claims for expenses for meals taken whilst working away from the office can involve a lot extra effort.
You can simplify matters by telling HMRC you will pay a standardised daily subsistence rate to your employees when they work out of the office.
These tax-free and NIC-free rates for business trips within the UK are easy to remember:
- £5 for leaving home earlier than usual before 6am;
- £5 for being away for at least 5 hours;
- £10 for being away for at least 10 hours; and
- £15 for finishing work later than usual after 8pm.
The employee is expected to purchase food or drink whilst working away but you do not have to check the receipts before paying the standardised subsistence rate. You can of course reimburse the actual cost of a meal if it is supported by receipts. When an employee travels overseas the receipt chasing can reach a new level of difficulty. Fortunately HMRC have drawn up standard subsistence and accommodation rates which you can use to reimburse the costs employees incur while travelling outside the UK.
There are no standardised rates for overnight accommodation within the UK; that must be paid according to the actual costs incurred.
Would you like help and advice on this or any other issue?
Contact us straight away by telephoning 01932 564098 or email us using our ‘Contact Us’ page.
This note was published from our Summer 2019 Tax Briefing dated June 2019
Please be aware that the information above may have changed in subsequent months.
This note is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or for taking professional advice.