SE66115 - Tax treatment of lorry drivers: subsistence allowances paid to lorry drivers - payments in excess of the approved amount

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 SE66120 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 SE66105 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.