This guide explains the reporting, tax and National Insurance contributions (NICs) requirements if you pay for the incidental expenses incurred by an employee while staying away from home overnight on business.
On this page:
You pay no more than £5 per night (£10 per night for travel outside the UK) to cover incidental non-business expenses incurred by an employee while travelling overnight on business. Examples of incidental expenses include:
You have:
You pay in excess of £5 per night (£10 per night for travel outside the UK) to cover incidental non-business expenses incurred by an employee while travelling overnight on business. Examples of incidental expenses include:
For employees earning at a rate of less than £8,500 per year:
For company directors or employees earning at a rate of £8,500 or more per year:
The value to use is the full amount that you pay to your employee – not just the amount above the £5 or £10 threshold.
To check what's included in the £8,500 threshold for P11D reporting purposes, follow the link below.
EIM02710: Incidental overnight expenses - exemption from charge
