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HMRC internal manual

Employment Income Manual

Tax treatment of engineering design employees: guidelines issued by the Federation of Engineering Design Companies: overnight subsistence

“4. Overnight subsistence

  1. Where the distance is such that a return to home each day from the client’s office cannot reasonably be expected, overnight subsistence will be payable in respect of each day spent working at the client’s offices. No claim will be allowed for weekends, when the employee was able to return home but chose not to do so.
  2. Return travelling expenses to home between weeks spent working at the client’s premises will be allowed.
  3. Where the employee chooses to return home each day, he will be paid the overnight subsistence rate or his travelling expenses, whichever is the less.
  4. Where an employee works at a site for more than four weeks at a time, the subsistence rate will be reduced to a lodging allowance on the basis that a more permanent arrangement may reasonably be expected to be made.”