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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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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:
    • EIM32015 explains what is meant by a business journey where the travel is to a temporary workplace.
    • EIM32350 explains what is meant by a business journey where the travel is in the performance of the duties of the employment.

 

  • 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.