This is a freeview 'At a glance' guide to the tax-free overnight subsistence allowance which be may be available to employed lorry drivers.

The rate is £34.90 from 1 January 2013.

  • This allowance is payable by employers when drivers have to spend the night away from home and their permanent workplace (if any).
  • The cost of meals is included in the overnight rate. Employers should not also pay or reimburse the cost of these meals on either an ‘actuals’ basis or using the benchmark rates.
  • Where drivers have a sleeper cab 75% of the allowance may be paid. An HMRC approval notice must be applied for by the employer.
  • The allowance is subject to the rules in sections 337 and 338 ITEPA 2003.
  • This allowance is NOT available to self-employed individuals.

Employers can also agree their own scale rate paid with HMRC.

Where the employer knows that the driver uses their sleeper cab, the amount paid free of tax should not exceed a reasonable reimbursement of:

  • Evening meal and breakfast.
  • Washing facilities.
  • Upkeep of bedding in the cab.

Useful guides on this topic

Subsistence (employees)
This is a guide for employees: can I claim tax relief for subsistence? Subsistence is the tax term for food and drink.

Subsistence (employer's guide)
Subsistence is the tax term for food and drink. What can be claimed? What are the rules for employer intermediaries? How do claims affect VAT, NICs and Income Tax?

Travel (summary for employees)
What expenses can your employer reimburse? How might travel expenses affect income Tax and National Insurance Contributions? What journeys are allowable for tax relief?

Travel (employer's guide)
How do employers apply the tax rules to travel costs? What is available for subsistence costs? What are the rules on home-to-work travel?

External link

HMRC lorry drivers subsistence allowance: EIM66110.


Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

 

Comments (1)

Rated 0 out of 5 based on 0 voters
This comment was minimized by the moderator on the site

Can the night allowance be counted as part of your weekly wage or is it classed as a benefit and therefore deducted from the overall weekly wage before calculating NMW?

Guest
There are no comments posted here yet

Leave your comments

  1. Posting comment as a guest.
Rate this post:
Attachments (0 / 3)
Share Your Location

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad