£5 Incidental Overnight Expenses

£5 Incidental Overnight Expenses

Didn't find your answer?

Can the employer pay up to £5 per night without the employee submitting receipts?
In my case, the employee (director) is also the sole shareholder of the company.
Claire

Replies (8)

Please login or register to join the discussion.

avatar
By User deleted
24th Apr 2008 20:59

Round sum allowances
Have a check through the latest additions to HMRC's EIM

New guidance on subsistence and scale rate payments https://www.accountingweb.co.uk/cgi-bin/item.cgi?id=181773&d=1032&h=1019&f=1026

Thanks (0)
avatar
By User deleted
23rd Apr 2008 08:42

So what's final conclusion please?.
.

Thanks (0)
avatar
By User deleted
22nd Apr 2008 19:34

Apologies Angela
would appear to be Revenue's Employer Compliance Manual (now withdrawn) paragraph 13110. Can't find same document that I was looking at earlier but ended up with the following:


Where an allowance is paid specifically to meet incidental expenses, it qualifies for the exemption whether or not the employee spends it on qualifying items. This was confirmed in the Revenue’s Employer Compliance Manual (now withdrawn) at paragraph 13110:

‘an allowance specifically designated to meet PIEs still qualifies for the exemption even if the employee does not spend it, or if it is spent on items other than PIEs.’


Thanks (0)
avatar
By AnonymousUser
22nd Apr 2008 17:37

Wrong reference?
Claire, Thank you for pointing this out - I have always relied on strict wording of legislarion. However, I think you may have given wrong reference in the manuals. Can you please advise correct reference?
Angela

Thanks (0)
avatar
By User deleted
22nd Apr 2008 13:22

Exemption not dependent on actual expenditure
Found the following while researching matter - "where an allowance is paid specifically to meet incidental expenses, it qualifies for the exemption whether or not the employee spends it on qualifying items. This is confirmed at EIM 13110: 'an allowance specifically designed to meet PIEs still qualifies for the exemption even if the employee does not spend it, or if it is spent on items other than PIE's'. Employers should take care not to reimburse such expenses twice over by settling entire hotel bill for example which may include some PIEs and in addition pay an allowance for PIEs".

Thanks (0)
avatar
By AnonymousUser
22nd Apr 2008 10:54

I disagree with Alan - expense has to be incurred
I disagree with Alan - the relief only applies where money is paid out by the employer for, or to reimburse the employee for, expenses in the specified circumstances - see s240(1) . Note also provisions in s 241 - if the limit is exceeded the whole amount becomes taxable. Your client would need receipts to prove that the expenses had been incurred, although other evidence may be acceptable.

Thanks (0)
avatar
By User deleted
22nd Apr 2008 10:45

Thanks Alan
Thanks for references too, will now read further.

Thanks (0)
avatar
By alanlowrey.hotmail.co.uk
22nd Apr 2008 08:13

Section 240 ITEPA provides the exemption...
...and section 241 specifies the monetary limits. Up to £5 per night whilst absent from home in the UK or £10 per night if absent and outside the UK.

There is no need to provide receipts nor even to incur an expense.

Thanks (0)