Employment expenses; employer underpaying accommod

Employment expenses; employer underpaying for employees accommodation and subsistence; can he claim

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Client is an electrician and works away quite alot on contracts for his employer.

Employer pays a flat rate £42 per day to cover costs of staying away. Client says his costs are usually more like £65 a day for his BandB and meals.

Can the employee claim the difference between 65 and 42 if he has the bills and receipts to prove it? 

Also can he claim the travel each week to where he works at 45p per mile?

The contracts can be quite long but not more than 2 years so I think he could claim it wasn't a permanent workplace.

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By lesley.barnes
15th Oct 2018 10:53

Have you had a look at the guidelines ?https://www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses. You mention a contract of not more than 2 years. Is he really an employee paid through PAYE or self employed?
If he is PAYE I can't see a problem with him claiming tax relief on the difference between what he is reimbursed and what it costs him. Likewise mileage if he is being sent out of his permanent place of work on jobs. It does sound like a strange arrangement if he is an employee but it is costing him money to do his job. Does his employer not provide him with a van to do his job?

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Replying to lesley.barnes:
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By David Heaton
15th Oct 2018 14:38

He should be able to claim for the difference in accommodation costs and an authorised mileage rate for travel to a temporary workplace. I have seen cases where the employer has a policy, agreed some years ago with HMRC, and can't afford to increase its standard rates. It certainly happens in the public sector that workers have to make a P87 claim (or file an SATR for amounts above £2,500) for deductible expenses that their employer will not reimburse.

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