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HMRC internal manual

Employment Income Manual

Employment income: incidental overnight expenses: example


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

night 1 5.50
night 2 6.00
night 3 2.50
total 14.00


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 two nights, the total reimbursement did not exceed £15 for the three nights, see EIM02730.