EIM66130 - Tax treatment of lorry drivers:
subsistence allowances paid to lorry drivers: lorries with sleeper
Where an employer seeks guidance as to the rate of overnight
subsistence that may be paid free of tax when drivers are away
overnight in lorries with sleeper cabs, you should consider the
- The employer must take all necessary steps
to be satisfied that any amounts paid free of tax are no more than
a reasonable reimbursement of the allowable expenses of the driver
while staying overnight away from home and the permanent workplace
- The mere fact that a lorry has a sleeper
cab does not prevent the employer paying an amount tax free up to
the limit shown in
EIM66110 (or locally agreed limits)
provided that the employer is satisfied that the driver did incur
expenses on overnight accommodation (for example by staying in a
hotel) and meals.
- Where the employer knows that the driver
uses the sleeper cab, the amount paid free of tax should not exceed
a reasonable reimbursement of:
- evening meal and breakfast
- washing facilities
- upkeep of bedding in the cab.
- Where there is documentary evidence to
show that the employee necessarily spent the night away from home
and his or her permanent workplace (if any), HMRC accepts that a
payment of 75% of the figure shown at
EIM66110 does no more than reimburse the
expense incurred when the driver uses the sleeper cab overnight.
Payments in excess of this amount may only be paid tax-free where
the conditions at
EIM66115 are met.