grumpybum:
I thought I’d better check this before I get all arsey with payroll.I’m an agency driver on PAYE not an umbrella scheme. I have been getting night out payment (£23) listed as expenses on my payslip for the last 6 months. Last week it was shown as basic pay and taxed. I have queried this and got this response:
“With regards to the N/O they are meant to be taxed and have been for the last few years after HMRC changed the legislation.”
Have I missed something? Or can I put my arsey pants on?
Depends…
Night -out payments are tax-free, up to an amount (£26) if you can prove you were indeed away from base, or if the company has an agreement with HMRC, such that they are confident N/O money is not a disguised payment.
Try this:
gov.uk/hmrc-internal-manual … l/eim66205
“2. Agreed industry scale rate –lorry drivers’ overnight subsistence allowance
You can apply to HMRC for an approval notice to use the agreed haulage industry scale rate for overnight stays away from home. This is currently £34.90, or 75% of this figure (£26.20) where the driver uses a sleeper cab, and incurs subsistence expenses after starting their journey. These are the maximum amounts that can be paid free of Income Tax and NICs under the agreed industry scale rate.
You will also need to have a checking system in place to ensure periodic checks are carried out on a sample of employees. This is to ensure employees are incurring expenses for meals and other subsistence costs while travelling, and that the payment remains a reasonable estimate of the costs usually incurred. A meal is a combination of food and drink in accordance with a normal dictionary meaning of the word.”