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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. Any meals that the employee does have to pay for may be reimbursed using the appropriate meal rates.

See example 5.

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.