Tax free Day Subsistance rates

H M Revenue & Customs have introduced a system of 'benchmark' day subsistence rates. Where an employee has incurred subsistence expenses while travelling on business, the Inland Revenue will accept that flat rate allowances paid at or below the ‘benchmark’ rates may be paid free of tax and National Insurance contributions. Partner Malcolm Dewhurst welcomed this as a means of easing administration for small businesses. However, he pointed out that a number of ‘terms & conditions’ apply so please contact us for further advice if you are thinking of making such payments.