Daily subsistence scale rates
Did you know that since 6 April 2009, HMRC has operated daily subsistence scale rates for reimbursing expenditure incurred by employees working away from home?
The rates vary from £5 to £15, depending on the length and time of absence. HMRC has now confirmed that a daily rate of up to £15 to reimburse expenditure may be paid to employees from abroad on UK assignments of no more than two years.
If you have such foreign employees, and pay them a fixed expense allowance within this limit, there will be no income tax or national insurance contribution consequences. The scale rate covers daily subsistence only, and not overnight accommodation.