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HMRC internal manual

Employment Status Manual

Agency and temporary workers: subsistence expenses

Subsistence payments made by the agency or the client because the worker is obliged to travel or live away from home in order to work at the client’s premises are emoluments chargeable under Section 19(1) ICTA 1988/earnings within Section 62 ITEPA 2003, see Elderkin v Hindmarsh 60TC651. PAYE must be applied and Class 1 NICs may be due depending on the circumstances.

The exception is where an agency worker is on detached duty from the client’s premises at a temporary workplace. In such circumstances reasonable subsistence payments made for the period of detached duty are not emoluments chargeable under Section 19(1) ICTA 1988 (SE10060) or earnings within Section 62 ITEPA 2003 (EIM10060).