Tax treatment of lorry drivers: subsistence allowances paid to lorry drivers
Sections 337 and 338 ITEPA 2003
A subsistence allowance paid by an employer to a long distance lorry driver need not be taxed if both of the following conditions are met.
- There is documentary evidence, see EIM66120, available to show that the employee had spent the night away from home and away from his or her permanent workplace (if any) as a necessary result of a business journey and had incurred expenses in so doing:
- The amounts paid are no more than a reasonable reimbursement to cover the cost of accommodation and subsistence incurred as a result of the business journey. The amounts that HMRC accepts as reasonable for nights in the United Kingdom are listed at EIM66110.