SE62600 - Tax treatment of engineering design employees: travelling and subsistence allowances

The Federation of Engineering Design Companies has circulated to its members guidelines on the payment of travelling and subsistence allowances to employees of Federation members, and the taxation treatment of such allowances. A copy of the guidelines is given below beginning at SE62605.

Paragraphs 6 to 9 of the guidelines deal with the taxation treatment of the allowances. These paragraphs have been agreed with the Inland Revenue but they apply to the old travel rules that apply to 1997/98 and earlier years only.

There is guidance on the new travel rules that apply to 1998/99 and later years at SE32000. The new travel rules apply to employees in the engineering design industry in the same way as they apply to other employees. Employment Income Technical will advise if any difficulties arise regarding the guidelines issued by the Federation.