ECH15025 - Expenses, Benefits and Pecuniary Liabilities: Incidental Overnight Expenses (IOEs): Exemption from charge
When employees stay away from home employers may make tax and
NICs free payments to meet the cost, or part of the cost of
expenses such as newspapers and laundry services. Prior to 6 April
2003 such payments were known as personal incidental expenses or
PIEs.
With effect from 6 April 2003 they became known as
Incidental Overnight Expenses (IOEs)
You should familiarise yourself with the guidance at
- EIM02710 onwards (for payments made from 6 April 2003)
- SE2700 (for payments made prior to 6 April 2003
- NIM06010 onwards.
The terms of the exemption in EIM02730 are such that, if an employer pays incidental overnight expenses in excess of the maximum amount allowable then the whole payment is taxable and liable to NICs.
