EIM66105 - Tax treatment of lorry drivers:
subsistence allowances paid to lorry drivers
Sections 337 and 338 ITEPA 2003
A subsistence allowance paid by an employer to a long distance
lorry driver need not be taxed if
both of the following conditions are met.
- There is documentary evidence, see
EIM66120, available to show that the
employee had spent the night away from home and away from his or
her permanent workplace (if any) as a necessary result of a
business journey and had incurred expenses in so doing:
-
EIM32015 explains what is meant by a
business journey where the travel is to a temporary workplace.
-
EIM32350 explains what is meant by a
business journey where the travel is in the performance of the
duties of the employment.
- The amounts paid are no more than a
reasonable reimbursement to cover the cost of accommodation and
subsistence incurred as a result of the business journey. The
amounts that HMRC accepts as reasonable for nights in the United
Kingdom are listed at
EIM66110.
