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HMRC internal manual

Employment Income Manual

Tax treatment of lorry drivers: subsistence allowances paid to lorry drivers: documentary evidence

Where documentary evidence is needed to support a checking system for scale rate subsistence payments, it may include:

  • receipts
  • drivers’ log sheets
  • drivers’ expenses claims
  • receipts obtained on payment for lodging (for example hotel bills)
  • parking receipts and itinerary records kept by the employer in the pay records, or separately, as evidence of nights away from home and permanent workplace

The list is not exhaustive and employers may need to make further enquiries to be satisfied that tax-free payment is justified.

Employers will need to retain evidence to show that they have undertaken checks in accordance with the checking system that they proposed when making their application for an approval notice. This evidence may be required when the employer is subject to an employer compliance review.