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HMRC internal manual

Employment Income Manual

Employment income: scale rate payments: accommodation and subsistence payments to employees travelling outside the UK: employee receiving free meals and accommodation

If an employee receives free meals and accommodation – for example, if staying as the guest of another company – the employer may reimburse, per day, 10% of the appropriate total residual rate (see EIM05255). Any meals that the employee does have to pay for may be reimbursed using the appropriate meal rates.

See example 5 at EIM05280.

The meal rates may also be used to adjust the over 5 hour, over 10 hour and total residual rates to take account of individual meals provided by a host. For example, if an employee is provided with dinner on a particular day the over 5 hour, over 10 hour or total residual rate which would otherwise have been paid should be reduced by the amount of the dinner rate for that location.

See example 6 at EIM05280.