Changes are expected shortly in respect of scale rates payable to employees on account of subsistence when travelling outside the UK.

The Foreign and Commonwealth Office (FCO) has stopped producing worldwide subsistence rate tables.  The FCO rates were accepted by HMRC for the use of all employers. The change means  that HMRC can no longer offer the FCO rates to employers as benchmark rates for overseas subsistence expenses and it has to now work out what is practical to use as an alternative.

HMRC is in the process of reviewing the policy of providing benchmark rates. A further announcement will be made as soon as a decision is made. In the meantime, employers can continue to use the old rates or, employees can account for expenses according to actual expenditure and converted from local currency.

Our Practical Tax Guides on this topic:

Subsistence (employer's guide)

Subsistence (employees)