NIM06030 - Class 1 NICs: Expenses and allowances: Incidental overnight expenses (previously Personal Incidental Expenses or PIEs): Evidence required

Section 240 Income Tax (Earnings and Pensions) Act 2003

General

Employees are not required to produce receipts for any amount claimed in respect of incidental overnight expenses (formerly PIEs) as long as it is within the prescribed maximum. However, if an employer pays for incidental overnight expenses/PIEs you should check that:

• their records show that the employees concerned were away from home on business for the nights involved
• the amounts paid do not exceed the relevant prescribed maximum
• the total payments made to each employee do not exceed the aggregate
• payments have not been made twice; for example, check that the employees have not charged the incidental overnight expenses/PIEs to their hotel bills and then receive an allowance
• where payment to one employee includes an element of expense for another, for example, where they are away together, the prescribed maximum is not exceeded.

See NIM06015 and NIM06020 for general information regarding incidental overnight expenses/PIEs and the application of the prescribed limits and NIM06025 for guidance on the general position for NICs from 6 April 2001. See EIM02710 for guidance on section 240 ITEPA 2003 for the tax treatment of incidental overnight expenses.