Does an employer get night out money back in full somehow or claim off tax or do they get government grants etc as there always pleading hard up but make lots of money does anyone know exactly how it works thanx we had 2 nights out included in salary which was wrong and cap not taxed so eventually after 4 years he took the nights out of salary get paid £27,500 gross then £20 a night out after that but now taxed on whole gross income get £16 a week less because of tax if do 1 night out it works out £4 if 2 nights £24 if 3 nights £44 bloody employers are a joke always crying hard up but spend money in the wrong places included in the salary is a performance bonus £60 tax free I said just change that performance bonus to £110 so we get same money net pay then get £20 a night out after that they said nothing there accountants Don t know a viable solution round the tax any thoughts would be good especially if there’s clever people who know a way round it thanx
None of that makes sense, but if your asking how your company deals with night out money they pay you tax free then they don’t pay tax on that money
I think they can pay you around £24-25 tax free for a night out. If your boss is taxing you on that figure, you’re being swindled.
The ‘tax free’ status of night out money, exclusively refers to the deductions from an employees earnings, it is not free money to the employer. An employer may include it as part of the direct costs to the business, the same as a drivers salary rate, or, as an administrative overhead.
HMRC will allow the deduction on the company profits, so the company will save the 20% corporation tax on the payment, however the remaining 80% will still come from the overall trading profit of the business. Of course any business worth it’s salt will ensure that the cost to the customer includes all drivers pay and they won’t fund your night out as a charitable donation.
As well as paying it to you without deducting Income Tax and Employees’ National Insurance, they would also avoid having to pay Employers’ National Insurance on the money as well, which is 13.8%.
So, say they pay you £20 for a night out. If it’s paid as “salary”, then they’d have to deduct 20% tax and 12% employee NI, giving you £13.60 take home. However, the company would also have to pay their employer NI, which means that it actually costs them £22.76.
If it’s paid as “expenses”, then it costs them £20, and you get £20 to take home.
Of course, HMRC puts a limit on how much they can legally give you as tax-free expenses, which is what they consider to be the “reasonable” typical costs of you spending the night away from home. If it’s more than that, then you could legally claim higher expenses (if the employer is willing to pay them), but you’d have to provide receipts to prove that you actually spent the money legitimately.
The night out tax free allowance at current is £34.
This amount can be paid to an employee tax and NI free but only to the point of covering the reasonable expense incurred in staying out. Just because a lorry driver has a sleeper cab this does nto mean they lose the right totally. HMRC set an accepted % of this figure for trampers to cover maintaining and cleaning the cab and bedding.
what I have always wondered, is the night out money classed as earnings or is it like a subsistence payment?
I think the example that got me thinking was a part time driver that did two days with a night out, was querying what he put for his tax credits form?
Is it two days pay? Or the night out money for the purposes of stopping away from home as well?
Any one in the know on such matters?
Thanks in advance
Matt
or do they get government grants
pmsl i wish 
Mattwoodtransport:
what I have always wondered, is the night out money classed as earnings or is it like a subsistence payment?I think the example that got me thinking was a part time driver that did two days with a night out, was querying what he put for his tax credits form?
Is it two days pay? Or the night out money for the purposes of stopping away from home as well?
Any one in the know on such matters?
Thanks in advance
Matt
It is a subsistence payment. When it comes to Tax Credits the solution is simple. On your wageslip or P60 is an entry for “Taxable Pay”. That is the amount you tell them you earned.
Gothika:
Don t know a viable solution round the tax any thoughts would be good especially if there’s clever people who know a way round it thanx
If your employer isn’t doing it properly then keep a record of your nights out and submit a claim for a refund yourself using the P87 “expenses in employment” form. You put down a monetary amount so say you do 100 nights out a year you’d put down £2000 for 100 nights at £20 a night. They would then send you a refund of £400 because that’s the amount of tax you’d have overpaid.
burnley-si:
or do they get government grants
pmsl i wish
Yeh it’s only farmers not hauliers who get grants, subsidies and handouts, and especially if their business is ailing
I mean you’ve got to feel sympathy for them, some of the poor sods are down to their last 5 series BMW. 
easier that having to type it all out 
saxtonhaulage-andre:
The night out tax free allowance at current is £34.This amount can be paid to an employee tax and NI free but only to the point of covering the reasonable expense incurred in staying out. Just because a lorry driver has a sleeper cab this does nto mean they lose the right totally. HMRC set an accepted % of this figure for trampers to cover maintaining and cleaning the cab and bedding.
75%
Conor:
Mattwoodtransport:
what I have always wondered, is the night out money classed as earnings or is it like a subsistence payment?I think the example that got me thinking was a part time driver that did two days with a night out, was querying what he put for his tax credits form?
Is it two days pay? Or the night out money for the purposes of stopping away from home as well?
Any one in the know on such matters?
Thanks in advance
MattIt is a subsistence payment. When it comes to Tax Credits the solution is simple. On your wageslip or P60 is an entry for “Taxable Pay”. That is the amount you tell them you earned.
Gothika:
Don t know a viable solution round the tax any thoughts would be good especially if there’s clever people who know a way round it thanxIf your employer isn’t doing it properly then keep a record of your nights out and submit a claim for a refund yourself using the P87 “expenses in employment” form. You put down a monetary amount so say you do 100 nights out a year you’d put down £2000 for 100 nights at £20 a night. They would then send you a refund of £400 because that’s the amount of tax you’d have overpaid.
So what are you saying Conor, as I’m not the driver in question? And therefore my p60 doesn’t answer it, do you have the answer?
It’s interesting to note that the amount seems to be £34.90 these days.
Every tramper I know is still on £20-£25 as far as I know - so it looks like EVERYONE is being “swindled”. 
Umbrella fees have been talked about rising from £27 to £35 this year already - so how come no speak about the apparent rise in night out money? 
FOR THE ATTENTION OF EVERYONE WHO NIGHTS OUT.
If your employer pays you less than the current rate of £34.90 per night you can claim tax relief on the difference. Keep a record and total up the difference between what they pay you and what the total number of nights out at £34.90 is. Download, complete and return a P87 Expenses in Employment for that difference. They’ll send you a cheque back for 20% of the difference.
Example:
Your boss pays £20 a night night out money. You do 100 nights out so get £2000.
The HMRC tax free allowance is £3490.
You therefore complete a P87 at the end of the tax year claiming £3490-£2000=£1490 and should receive a tax refund of £298.
You can claim a refund for earlier years if you’ve a record. I forget whether it is 3 or 6 years so you’ll need to ask the tax man. For trampers it could mean a refund of £1000s the first time you do it.
If you have a logo’d work uniform you wash at home, you can add another £150 to that amount you put on the P87 as there’s a tax free allowance for washing work uniform at home. For everyone else who washes their own uniform contact your local tax office and have them apply the allowance to your PAYE code.
conor try reading what i posted 
you have to prove that the night out cost you £34.90 and if you have a sleeper cab its only up to 75% of the £34.90
the £34.90 is not just lorry drivers its anyone that is way during the week on business, to cover hotels/b&b etc
you cant claim £150 for washing the odd polo shirt you can only claim if its a issued full uniform,
you need to watch what your advising people on
burnley-si:
conor try reading what i postedyou have to prove that the night out cost you £34.90 and if you have a sleeper cab its only up to 75% of the £34.90
the £34.90 is not just lorry drivers its anyone that is way during the week on business, to cover hotels/b&b etc
you cant claim £150 for washing the odd polo shirt you can only claim if its a issued full uniform,
you need to watch what your advising people on
^^ that
mac12:
None of that makes sense, but if your asking how your company deals with night out money they pay you tax free then they don’t pay tax on that money
I thought the same,without a full stop or comma or capital letter and separate sentences in the posting, its difficult to work out,its like talking without stopping for breath.