Employees’ foreign travel
17 May 2008 in Company, Individual, International HM Revenue & Customs has announced that it will now accept the use of scale rates by employers who pay accommodation and subsistence allowances to employees whose duties require them to work outside of the UK.
The scale rates are those used by the Foreign & Commonwealth Office.
Payments at, or below, these published rates will not be liable to income tax nor NIC, and will not be reportable by the employer on forms P11D. Employees who incur actual expenditure in excess of the amounts reimbursed by their employers will continue to be able to claim relief for the excess, but will need to be able to evidence the amounts claimed.
Payments for foreign travel and subsistence are in addition to the income tax and NIC free amounts which an employer can pay towards incidental overnight expenses; being £10 per night for stays outside of the UK.
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