Travel and subsistence expenses

Posted by Zeel Solutions on May 30th, 2017

Taxes are applied on every product that we get to consume and also to every sector in the economy. As much as they are essential for the growth of an economy, some can be relatively high and demanding. The travel and subsistence is a method that is used to lower travel tax pay with the National Insurance Contribution (NIC) free payments and tax. It enables employees on the trip to enjoy tax relief on different kind of things in relation to their places of work.


This means that employees traveling to areas such as it with the case in mobile and agency workers and other workers who work on site including cleaners and security officers will not be taxed on certain expenses on this kind of travel. The employees are not taxed on other things such as meals, laundry, and similar ad hoc expenses which they incur when they are on duty. Employers have therefore the responsibility of creating an environment that would enable their employees to claim their travel and subsistence packages. This allows them to incur reduced taxes and to increase the amount of cash that they manage to take home at the end of the day.

What travels can I claim?

One cannot include the expenses accrued from traveling between home and work because this is seen as a daily commute. Other travels outside the ordinary are allowed provided it is wholly for work purposes. You can claim money on gas or by the number of miles you drive. You can also claim on other means of transportation such as taxi, train, airfares, bus, etc.You are however not permitted to claim for penalties or fines.

What meals can I claim?

You cannot include your day to day meals as a business expense. Meals that are taken during the travel, that is, “one- off kind of meals which are outside the work pattern” are included as expenses.

What about travel accommodation?

If your business trip requires an overnight stay, one is advised to claim for the housing expenses at prices which are reasonable. Expenses associated with accommodations that are too close to your residence proximity are not considered to be subsistence.

Employees are not the only ones who can enjoy this privilege. As a matter of fact, the employers also stands a chance to benefit from the advantages by coming up with an arrangement with the employees on the best way to split the savings after getting lowered taxes and also on NIC. One can be startled by the significant of the reduction in taxes on the subsistence expenses. The rates are usually pre-approved and arranged by HMRC where contracts, policies and also procedures are signed off and replaced by costs.

When looking for outstanding travel and subsistence expenses rates, it is advisable that you seek the services of professionals who have contacts with the best advisors of travel and subsistence rates. Many firms offer this kind of services and will, at a cost, connect you with the best panel that will cater for all your needs and that would ensure that you select the best package rates.

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Zeel Solutions
Joined: May 22nd, 2017
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