Employers may pay incidental expenses incurred on business trips involving overnight accommodation up to a de minimis limit without any tax or NIC consequences1. Certain payments are regarded as neither employment income nor benefits2.
Such payments must be made wholly and exclusively to meet or reimburse expenses which3:
- Ìý
(a)ÌýÌýÌýÌý are incidental to the employee's absence from the place where the employee normally lives and are made during a 'qualifying period' of absence; but
- Ìý
(b)ÌýÌýÌýÌý would not be deductible from earnings if paid by the employee4 and are not within the provisions dealing with mileage allowances and passenger payments5
The exemption does not apply if the 'permitted amount' (see below) is exceeded, thus making the whole amount taxable6.
Qualifying absence from home
A 'qualifying period' of absence is defined as any continuous period throughout which the employee is obliged to stay away
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Web page updated on 17 Mar 2025 17:41