Business Travel

Quite often we find clients are paying travel and accommodation related expenses either to or on behalf of their employees without fully understanding the rules, or without any kind of process to monitor compliance.

This short article sets out the position for the most common scenarios:

BUSINESS TRAVEL AND SUBSISTENCE: 

EXEMPT from reporting and tax deductible

• HMRC’s approved scale rate payments for meal allowances and overnight personal incidental expenses
• Paying back the employee’s actual costs for accommodation, car parking, tolls etc.

You must keep and check all bills supplied by your employees.

REPORTABLE on employees P11d and fully taxable through payroll

• Excess payments over and above HMRC approved scale rate

MILEAGE IN EMPLOYEES OWN VEHICLE:

EXEMPT from reporting and tax deductible

• 45p per mile up to 10,000 miles per year
• 25p per mile for every mile above 10,000

REPORTABLE on employees P11d and fully taxable through payroll

• Any mileage payments made above the approved amount