Night out money

ASK THE EXPERTS SAFETY, LAW AND WORKING TIME DIRECTIVE FORUM (INTE
1

Can someone tell me if night out money is subject to income tax,or is it supposed to be paid tax free please.

2

bobxr4x4:
Can someone tell me if night out money is subject to income tax,or is it supposed to be paid tax free please.

If you have a sleeper cab 75% can be tax free, no sleeper cab it all can. Either up to the national rate agreed with the revenue or a higher rate if it can be proved it is necessary.

3

As far as I was aware night out money under about £25 is tax free…

4

i thought up to a certain level was tax free but the agree ment came from ur local tax office

5

chrisgoddard:
As far as I was aware night out money under about £25 is tax free…

farmer:
i thought up to a certain level was tax free but the agree ment came from ur local tax office

There is an agreed rate with the revenue, which is set annually, but a local agreement to pay more can be made. That amount can all be tax free if the driver doesn’t have a sleeper cab and 75% tax free if he does. The current agreed rate is a between £29 and £30, I can’t remember the exact amount of the top of my head, which means for those with sleeper cabs they get around £22.50 tax free.

6

Well I have sleeper cab and I get £20 per night,so that means all should be tax free?

7

bobxr4x4:
Well I have sleeper cab and I get £20 per night,so that means all should be tax free?

Should be, that’s less than 75% of the current agreed rate.

8

Coffeeholic:

bobxr4x4:
Well I have sleeper cab and I get £20 per night,so that means all should be tax free?

Should be, that’s less than 75% of the current agreed rate.

Cheers,a letter will be going off to the Inland Revenue to check this out,have looked back through my wageslips and seems I have been shafted quite a few times,on some the night out money is added in to the total,then when it get to the bit for the total for tax purposes it is deducted again so no tax was paid,on others it is not deducted and tax has been paid on the full night out ammount :imp: Suppose thats what you get for being lazy and complacement :frowning: Oh well something else to do now.

9

Without a sleeper hmrc.gov.uk/manuals/eimanual/EIM66110.htm
EIM66110 - Tax treatment of lorry drivers: subsistence allowances paid to lorry drivers: approved amount
Where both of the conditions in EIM66105 are met the following amounts should be accepted as doing no more than reimburse the expenses of accommodation and subsistence in the United Kingdom.
Year ended

Payment per night

31 December 2008 £29.85
31 December 2007 £28.62
31 December 2006 £27.55
31 December 2005 £26.90
31 December 2004 £26.00
31 December 2003 £25.15
31 December 2002 £24.50
31 December 2001 £24.30
31 December 2000 £23.55

With a sleeper hmrc.gov.uk/manuals/eimanual/EIM66130.htm

EIM66130 - Tax treatment of lorry drivers: subsistence allowances paid to lorry drivers: lorries with sleeper cabs

Where an employer seeks guidance as to the rate of overnight subsistence that may be paid free of tax when drivers are away overnight in lorries with sleeper cabs, you should consider the following points.

  • The employer must take all necessary steps to be satisfied that any amounts paid free of tax are no more than a reasonable reimbursement of the allowable expenses of the driver while staying overnight away from home and the permanent workplace (if any).

  • The mere fact that a lorry has a sleeper cab does not prevent the employer paying an amount tax free up to the limit shown in EIM66110 (or locally agreed limits) provided that the employer is satisfied that the driver did incur expenses on overnight accommodation (for example by staying in a hotel) and meals.

  • Where the employer knows that the driver uses the sleeper cab, the amount paid free of tax should not exceed a reasonable reimbursement of:

  • evening meal and breakfast

  • washing facilities

  • upkeep of bedding in the cab.

  • Where there is documentary evidence to show that the employee necessarily spent the night away from home and his or her permanent workplace (if any), HMRC accepts that a payment of 75% of the figure shown at EIM66110 does no more than reimburse the expense incurred when the driver uses the sleeper cab overnight. Payments in excess of this amount may only be paid tax-free where the conditions at EIM66115 are met.

10

Thanks for that,most helpfull.