Subsistence

The cost of business travel includes any necessary subsistence costs during the travel. Payments that are made to meet subsistence costs, whether by reimbursing actual costs, or by scale rate payments (as described in accounting for tax and NICs), can be subject to a dispensation and do not give rise to a liability for Class 1 NICs.

EIM31815 onwards contain more detailed guidance on subsistence costs and include a number of examples.

Business travel may include an extended secondment at a temporary workplace and the costs of that journey will include subsistence costs throughout the period.

Accommodation

Where an employee is required to stay away from home overnight during business travel the costs of the travel include the cost of the accommodation. For more guidance look at EIM31815.

Payments that are made to meet accommodation costs, whether the reimbursement of actual costs or appropriate scale rate payments, can be subject to a dispensation and do not give rise to a liability for Class 1 NICs.

Business travel may include an extended secondment at a temporary workplace and the costs of that journey will include the costs of accommodation throughout that period. There may be limits to the relief from tax and the exclusion from NICs in respect of the cost of accommodation.

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