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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Foreign travel rules: duties performed wholly abroad: foreign accommodation or subsistence costs and expenses

Section 376 ITEPA 2003

Summary

This page is concerned with the cost of accommodation or subsistence at the overseas workplace of an employee who works wholly abroad.

Conditions

The employee must:

  • perform the duties of an office or employment wholly outside the United Kingdom (see EIM34010 for the relevance of merely incidental duties)
  • be resident in the United Kingdom (see EIM34010)
  • be domiciled in the United Kingdom in a case where the employer is a foreign employer (see EIM40031 and EIM34160).

The employee’s earnings include an amount in respect of:

  • the provision of accommodation or subsistence outside the United Kingdom for the employee for the purpose of enabling the employee to perform the duties of the employment, or
  • the reimbursement of expenses incurred by the employee on such accommodation or subsistence for that purpose.

Nature of the deduction

Allow the cost of the employee’s accommodation or subsistence outside the United Kingdom where all the above conditions are satisfied. If the accommodation or subsistence is wholly for the purpose of enabling the employee to perform the duties of the employment, then the deduction will be equal to the amount included in earnings.

Accommodation or subsistence

These terms are not defined. They will include hotel expenses and the cost of rented accommodation.

Dual purpose of accommodation or subsistence

If accommodation or subsistence is provided partly for another purpose, for example, private use for a holiday, you should limit the deduction to the amount included in earnings that is properly attributable to the business purpose.