United Kingdom – New Travel and Subsistence Tables Published

United Kingdom – New Travel and Subsistence Table...

The U.K. tax authority has published new tables for amounts reimbursable to employees for business travel and subsistence outside the U.K. These new tables set scale rates for reimbursement.

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Flash Alert 2014-092

The U.K. tax authority has published new tables showing the amounts that can be reimbursed to employees for travel and subsistence when they travel outside the U.K. for business.1  The new tables, which took effect from 1 October 2014, set scale rates for reimbursement.   

WHY THIS MATTERS

These tables are widely used by employers in the United Kingdom.  The clarity the tables provide as to the amounts that can be reimbursed on a tax- and NIC-free basis is generally welcomed by those who use the tables.  Employers should refer to these for any new payments made.  

Background

HM Revenue & Customs (HMRC), the U.K. tax authority, publishes tables showing the amounts that can be reimbursed to employees for travel and subsistence when they travel outside the U.K. for business.  The reimbursement is tax- and NIC-free.

The Changes in Detail

The tables provide benchmark figures on a country-by-country basis.  Information for the larger cities in many countries is also provided.  Where these rates are used, employers need to establish that the city information is referred to where relevant. 

The tables provide the following information:

  • a “room rate” per night;
  • individual rates for meals including breakfast where it is not included in the room rate;
  • a “total residual rate” – designed to cover the cost of all meals in a 24-hour period together with the cost of daily travel;
  • a “24-hour rate” which is a combination of the “room rate” and the “total residual rate.”

There are also subsistence rates published, with the amount varying depending on the length of time the employee is in the country concerned. 

There are a few countries where information is not available – in these cases the table shows “ACTUALS + £4 PER DAY.”  Tax- and NIC-free reimbursement for these countries therefore will be the actual accommodation and subsistence expenses, plus £4 per day to cover travel costs.

Most of the table rates are denominated in the currency local to the country concerned.  Some rates are shown either in U.S. Dollar ($) or Euro (€).  For some countries, a combination of currencies is given.

KPMG NOTE

The increase in scale rates is meant to keep the tables in line with inflation. 

Although some employers choose to reimburse actual costs, many use the scale rates either to determine the amounts to reimburse to employees or to determine the amounts that can be reimbursed as a tax- and NIC-free payment.

CONTACTS

For additional information or assistance, please contact your local Global Mobility Services (GMS) or People Services practice professional or one of the following professionals with the KPMG International member firm in the United Kingdom:

 

Marc Burrows

Tel. +44 20 7694 5930

marc.burrows@kpmg.co.uk

 

Steve Wade

Tel. +44 20 7311 2220

steve.wade@kpmg.co.uk

 

Rachel Beecroft

Tel. +44 20 7311 6477

rachel.beecroft@kpmg.co.uk

The information contained in this newsletter was submitted by the KPMG International member firm in the United Kingdom.

© 2016 KPMG LLP, a United Kingdom legal liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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