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Travel Policy

In order to reimburse travel expenses to employees, do you need to obtain invoices / receipts?

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We have recently introduced travel and overnight stay for employees and sub-contractors.

Sub-Contractors are simply charging us the £25.00 allowance on their invoice.

Travel time is paid at flat and we pay for accommodation. As breakfast is normaly included with the accommodation, that is covered.

We have a £25.00 evening meal and drink (can be 1 alcoholic) allowance to which we request receipts.

One empoyee hasn't provided receipts for the times he has travelled and is disgruntled that I will not simply pay him the £25.00 tax free. He claims that his previous employers have never requested receipts and simply paid the money into his account.

It has also been raised that it is hard to find an evening meal and drink within that allowance.

My understanding is that if I simply pay the £25.00 it is subject to tax as he could be buying a meal deal and gaining on the allowance.

Is there a way in which I can pay the allowance without receipts or through payroll?

Any help would be greatly appreciated.

Replies (3)

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By Accountant A
11th Nov 2019 11:38

Have a word with these people:

https://www.numbersukltd.com/

Apparently, they will save you £3.73 for every £1 of their fees.

You've got £120,000 in the bank so would be worthwhile.

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By paul.benny
11th Nov 2019 12:46

There is some basic guidance here
https://www.gov.uk/expenses-and-benefits-travel

As your accountants would tell you,reimbursing out of pocket travel and subsistence is normally fine; round sum allowances are taxable.

As for another employer breaking the law, that's not your problem. And I don't what sorts of restaurants people expect to be dining in if they find £25 is not enough.

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By JDBENJAMIN
12th Nov 2019 10:55

Any branch of Wetherspoons will feed two or three people quite well (including a drink) for £25, so tell your people to stop acting so precious. I don't understand why you are asking for receipts at all if you are paying a flat rate allowance. Either you should reimburse exactly what the employee spends and demand receipts, or else give a flat rate and not need receipts. If the flat rate is paid, the £25 should be treated as taxable in the hands of the employee, and it then would be up to them to make a claim to HMRC for deductible expenses.

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