Hmrc daily benchmark rates

Receipts needed?

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I have a query from a client who wants to use the Hmrc benchmark rate of £25 a day for subsistence as she is working away in a temporary place of work.

she has called Hmrc and had told me that she doesn't need to keep any receipts and does not need to report it on a p11d or anything. So basically just needs to tell me how many days away and multiply that by £25.

i was under the impression that receipts needed to be kept to prove the actual expense has been incurred and that there should be a process in place to check the receipts but apparently this has come from Hmrc as new rules.

please can anyone shed any light on what their clients do and the administration needed.

many thanks

Replies (3)

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By KWest
15th Sep 2016 06:48

There is no £25 benchmark. Subsistence scales are specific at £5 for 5 hours travel, £10 for ten hours and £25 for 15 hours or where travel time is at least 5 hours and extends beyond 8.00 pm. If your client is relying on regularly charging the £25 a day therefore it is highly unlikely that HMRC are going to be satisfied with that in the absence of receipts to validate her claims.

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By PALacc
15th Sep 2016 09:24

Thanks - yes it's the over 15 hours rate that she is making the claim as she is working away from Monday morning until Friday afternoon for a period of 12 weeks.

I have pointed her in the direction of the Hmrc guidance that they actually have to spend money and need to check a sample but they seem to be very argumentative.

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By ruth.julian
15th Sep 2016 13:20

These links regarding travel and subsistence may help -

For employees: https://www.gov.uk/expenses-and-benefits-cash-sum-payments/scale-rate-pa...

For the self employed: https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...
The suggestion is that even if scale rates are used, then there should be receipts to support the amounts claimed.

I can't find the current reference, but there used to be a rule that subsistence expenses became taxable/NICable after 30 days on which subsistence claimed (ie 6 successive 5 working day weeks) without a 2 week break before the next period of claim.

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