EIM02750 - Employment income: incidental overnight expenses: example

An employee stays in a hotel for three nights as part of a business trip. During that time she spends £4.50 on private telephone calls and £1.50 on newspapers. Her employer reimburses these expenses.

The employee is not entitled to a deduction for the payments under the deduction rules in Part 5 ITEPA 2003. However, the reimbursement from the employer can be made tax free under the incidental overnight expenses legislation, see EIM02710.