EIM66115 - Tax treatment of lorry drivers:
subsistence allowances paid to lorry drivers: payments in excess of
the approved amount
Sections 337 and 338 ITEPA 2003
An employer wishing to make subsistence payments in excess of
the approved amount without deducting tax may do so, provided
that:
- the payments are intended merely to
reimburse the actual expenditure incurred and are made against
formal claims from the employee concerned, or supported by suitable
evidence, see
EIM66120 or
- the detailed arrangements under which such
payments are made have received the formal approval in writing of
the appropriate Inspector.
Where a request for approval is received the Inspector should
carefully examine the proposed arrangements to ensure:
- that the conditions of
EIM66105 are met and
- that the employees concerned genuinely
incur, on a day-to-day basis, the expenses that the allowance is
intended to cover.
Subsistence payments not covered by these instructions should be
subjected to tax.
