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HMRC internal manual

Employment Income Manual

Tax treatment of racehorse training or stud farm establishment employees: stable lads: subsistence allowances: overnight allowance and daily allowance

Overnight allowance

This subsistence allowance is paid when employees have to stay away overnight in the UK. Employees will usually receive the amounts set out in the table below. In line with previous practice, see SE68510, HMRC accepts that payments of up to £16.45 do no more than reimburse the extra expenses involved and can be paid without operating PAYE. Where the employer pays more than £16.45 PAYE should be operated on the excess.

### Date of payment ### Overnight allowance
   
1.2.02 to 31.1.03 £11
1.2.03 to 31.1.05 £12
1.2.05 to 31.1.06 £12.50
1.2.06 onwards £13

Daily Allowance - 1 February 2005 onwards

From 1 February 2005 until 31 January 2006, employers paid a Daily Subsistence Allowance of £6 to staff who travel to race meetings.

From 1 February 2006, the Daily Allowance is paid at variable rates, as follows:

Up to 6 hours £6
   
6 hours or more, but less than 8 hours £8
8 hours or more £12

From 1 October 2015, the Daily Allowance rates are as follows:

Up to 6 hours £10
   
6 hours or more, but less than 8 hours £10
8 hours or more £14

 

In line with previous practice (see below) these Daily Allowances can be paid tax free except when the employee is also receiving a Sunday Racing payment or a Racing Abroad allowance (see EIM68520). In those cases the Daily Allowance should be taxed.

 

Daily allowance - 1 April 1999 to 31 January 2005

Between 1 April 1999 and 31 January 2005, most employers stopped paying a day subsistence allowance. However, some employers still paid it when employees had to work away from their permanent workplace but did not qualify for any of the other subsistence allowances described above. Where this happened, employees were likely to receive £12. The Inland Revenue accepted that £12 did no more than reimburse the extra expenses incurred in working away and up to this amount could be paid without operating PAYE. Where the employer paid more than £12 PAYE should be operated on the excess.