EIM05255 – Employment income: scale rate expenses payments: accommodation and subsistence payments to employees travelling outside the UK: tables of benchmark rates: what the tables contain: what is not covered
HMRC has published tables of benchmark scale rates that employers can use to reimburse accommodation and subsistence expenses incurred by employees who have to travel outside the UK (see EIM05250). The tables cover a wide range of countries and regions and can be found in the HMRC internet library, Employment Income scale rates.
What the tables contain
For most countries, there are benchmark rates for the larger
cities as well as an “elsewhere” rate. Employers
wishing to use the published rates must ensure that they refer to
the table entry for the city where the employee stayed, or the
elsewhere rate, as appropriate. Rates are quoted in the relevant
foreign currency.
The tables provide:
- a “room rate” per night
HMRC recognises that employers often permit senior employees to stay in a more expensive hotel than other staff. We have therefore published both the Foreign and Commonwealth Office A rate and B rate. Employers wishing to use the benchmark rates should pay the rate appropriate to the class of hotel being used.
- a “total residual rate”. This figure is intended to cover the total cost of meals in a period of 24 hours, plus the cost of daily travel between the employee’s hotel and office
- a “24 hour rate”. This is the sum of the “room rate” and the “total residual rate”
Again, we have published both the A rate and the B rate.
- an “over 10 hour rate”, which is intended to cover subsistence expenses for any period of more than 10 but less than 24 hours
- an “over 5 hour rate”, which is intended to cover subsistence expenses for any period of more than 5 but less than 10 hours
- separate amounts for individual meals and other expenses incurred during the day. Employers who wish to do so may use these rates instead of the “over 5”, “over 10” and “24 hour” rates (see EIM05260).
Whilst most rates are published in the local currency, or are
consistently in either US$ or Euro(€) , there are a number of
countries where the Foreign and Commonwealth Office has published a
room rate in either US$ or € and the total 5hour, 10 hour and
residual rates in the local currency. The 24 hour rate will show
both currencies in these cases.
For some destinations, the table simply shows “ACTUALS
+ £4 PER DAY”. These are destinations for which no
benchmark information is available. In such cases, employers may
reimburse their employees’ actual accommodation and
subsistence expenses, plus £4 per day to cover hotel-to-office
travelling expenses.
For guidance on using the tables, see
EIM05260 and the examples at
EIM05280.
What is not covered
The benchmark rates are intended to represent the accommodation and subsistence expenses that employees incur during a period spent in a foreign country. That is why the “24 hour”, “over 10 hours” and “over 5 hours” periods are measured by reference to the times of arrival at and departure from the foreign country (see EIM05260). The benchmark rates do not cover incidental, allowable expenses that employees may incur en route – for example, the cost of a taxi to the airport in the UK, or necessary refreshments taken at the airport. Employers who wish to use the benchmark rates may reimburse those other expenses separately, in addition to paying the benchmark rates.
