SE34170 - Foreign travel rules: operation of PAYE on travel expenses paid to the employee

Paragraph F81 of the Employer's Guide to PAYE

Non-operation of PAYE on reimbursement of allowable travel expenses

There is no need for an employer to operate PAYE in respect of reimbursements of expenses in respect of foreign travel falling within SE34020 – SE34080. Such reimbursements should be treated as falling within paragraph F81 of the Employer's Guide to PAYE.

Scale payments

Where the employer makes scale payments in respect of such overseas travel, the payments may be made without deduction of tax provided the Inspector is satisfied that the payments are equivalent to reimbursement of expenses incurred (paragraph F81 of the Employer's Guide to PAYE).