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HMRC internal manual

Employment Income Manual

Employment income: incidental overnight expenses: example

An employee stays in a hotel for 3 nights as part of a business trip. Her employer reimburses the following personal expenses.

Night Amount reimbursed
Night 1 £5.50
Night 2 £6
Night 3 £2.50
Total £14

The reimbursement by the employer can be made tax-free under the incidental overnight expenses legislation. Although she was reimbursed more than £5 for each of the first 2 nights, the total reimbursement did not exceed £15 for the 3 nights, see EIM02730.