HMRC releases subsistence rate guidelines
HM Revenue and Customs (HMRC) has introduced an advisory system of benchmark scale rates which employers can use to make subsistence payments to employees who incur allowable business travel expenses. HMRC also proposes to standardise the different scale rates that it will agree with employers.
Under the benchmark system, HMRC has set advisory scale rates for particular day subsistence expenses that it will accept for all employers. As long as the employee has incurred subsistence expenses while travelling on an allowable business journey, employers will be able to make tax and NICs free subsistence payments up to the advisory rates. To this end, we are adopting the new HMRC Benchmark scale rates for subsistence from 14th April 2009.
The new subsistence rates, which are available if travel claims are allowed, are as follows:
Regular Working Hours During regular working hours the following meal rates apply: 1 Meal Rate (at least 5 hours away from home / regular work place) £5 per day OR 2 Meal Rate (at least 10 hours away from home / regular place of work) £10 per day
Irregular Working Hours If employees work unscheduled hours and need to leave home early or arrive home late then they can claim the following rates: Early Starters (leaving home before 6am) £5 Breakfast allowance Late Leavers (leaving work after 8pm) £15 Dinner allowance |
Please be aware that irregular working hour allowances are available only where you are asked to work such hours on an ad-hoc basis. If you regularly leave home before 6am and/or leave work after 8pm, then these are considered regular working hours.
Please note that receipted subsistence and scale rate subsistence rates cannot be combined in any one working week. Although you do not have to submit receipts to claim under the subsistence allowance, you must have purchased the meals that you are claiming, and you should keep receipts as a record of these purchases.
The new rates are taking immediate effect and so any claims received at our Administration Centre, regardless of the date for which the claim is being made will have the new rates applied. There is no need to submit a new claim form for these claims, as we will process these automatically. All future claims must now be made using the new expenses claim form that can be either downloaded from the Members Lounge, by emailing membership@fpsgroup.com or calling 08707 669229.
By following these new rates, FPS Members can take comfort that they are claiming in accordance with HMRC expenses guidelines relating to subsistence claims
. Our processes and procedures will provide further assurance as we take the necessary steps to confirm eligibility through completion of the Expenses Status Questionnaire and reviewing timesheets to check claims for irregular working hours.
If you are still uncertain as to what can be now claimed through the subsistence allowance then please either call our membership services on 08707 669229 or email membership@fpsgroup.com – we’re here to help you.
