Construction client, taken on a site worker via agency for fixed term. Client agreed to pay direct to the worker "the away from home allowance" (all other amounts being paid by agency).
Can i please clarify whether I am correct in my belief, which is that there is no such thing as such an allowance.
I know there are the benchmark scale Rates but I believe these are simply maximum amounts the employer can 'reimburse' without checking every receipt, as long as receipts are checked for a sample period.
Client is sure there is such a thing. Am I missing anything?
Thanks all
Replies (5)
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There was an extra-statutory agreement with the Road Haulage Association about overnight allowances for wagon drivers. Not sure if it's still extant or if other industries are involved.
The client may be reading an industry-wide benchmark rate of allowance as being tax free. Not necessarily the case at all.
Just because payments are not made by the employer does not mean they are not payments paid by virtue of employment. There used to be a question on the P35 about this and payments by third parties. As all dispensations and the like are now cancelled you would need to see what the payment covered but it should be specific and this sounds more like a round sum amount to me which should be included in the PAYE.