Nights out, Meal allowances - What else tax free

We are just taking on our first full time driver and having found out the massive amounts of employer tax I would have to pay, I am trying to find ways around it.
I know £22.38 is the max tax free night out allowance, so I can put this down as 5 nights out right?

Can I get away with meal allowance on top? If so whats the max on that?
Is there anything else I can give him tax free ? Keeping truck clean bonus etc??

Thanks
Joe

You are taking on a driver but instead of paying him a proper wage you want to duck and dive by paying him a low basic and various different things to make it look good? :unamused: :unamused: :open_mouth: :open_mouth: Bet he is really glad he took the job.

Not really doing him any favours are you? If he applies for credit or a mortgage a lot of financial institutions will only look at the basic and not take into account things like night out money or meal allowance. Night out money isn’t, and should never be counted as, part of the wages. If it came to light you had been paying him night out money when he hasn’t been on a night out he could face a hefty tax bill in the future.

soon to be the only driver in my ltd co and was wondering the same

what can i pay myself i.e.
night out
meal allowance

any more and what amounts please

many thanks
(think this is a similar question but for different reasons) :stuck_out_tongue: :stuck_out_tongue: :smiley: :smiley: :wink: :wink:

but coffeeholic. the driver may wish to have a low basic wage for his own reasons ie csa ,debts etc■■? We dont know do we, it may not be anything to do with jojo just wanting to escape paying low basics and less tax all he is asking is a straight foward answer
i pay my driver jojo, £22.00 n/out money and £3.00 meal allowence
his basic wage is £500 at the top less deductions, plus other payments on top of this,weekend work/fuel bounes attend allowence,etc,etc but these ARE TAXABLE!
so it looks like i to must want to escape paying taxes etc aswell then,
why carnt people just offer a straight sensible answer sometimes instead looking to deep into questions and offering stupid replys,daz

globby 480:
but coffeeholic. the driver may wish to have a low basic wage for his own reasons ie csa ,debts etc■■? We dont know do we, it may not be anything to do with jojo just wanting to escape paying low basics and less tax

It may not but I was only going on the information provided in the first post

having found out the massive amounts of employer tax I would have to pay, I am trying to find ways around it.

It has been a problem for many years with companies, of all sizes, paying a low wage and kidding the driver into believing night out money forms part of his/her wages. It’s wrong.

I also think pointing out the pitfalls of paying nights out just to make up the wages, when a night out hasn’t been done, and the fact it could land both of them with a hefty tax bill down the line could come under the heading of sensible answer.

It doesn’t look to me that you are trying to escape paying tax etc. You pay what looks like a decent basic with extras for weekends, fuel economy, attendance etc which is all taxable and then night out and meal allowance which isn’t. Seems fair and straightforward.

Thank you for your replies. Coffeeholic - I think the questions were fair to ask - I think you will find that most companies try to find ways around tax - although I do take your points. My employee is most happy with us actually - Thank you for your concern, It was his personnal situation that made me look into this in the first place.

Globby 480 - Thank you for your help, its appreciated.

One more point coffeeholic - Surely any question posted on here deserves a polite response? I shall not bother posting here again.

All the best

If you can pay a driver night out money (tax free) does that mean if you are an owner driver,can you pay yourself night out money tax free■■?

Shaun6820:
If you can pay a driver night out money (tax free) does that mean if you are an owner driver,can you pay yourself night out money tax free■■?

As long as you’re actually doing nights out then yes you can.

Paul

Thanks

The night out allowance that you say is the maximum is an agreed amount between the tax man and the RHA.
You can agree an alternative amount with your tax office. and with things becoming more expensive by the week then you will be able to agree quite a substancial amount.
If you are doing continental work then you can claim a much higher subsistance living allowance.
You can claim a meal allowance each day. you could pay him some extra out of petty cash where receipts are not normally audited as it is done as one lump. The m6 toll may be worth 2 trips a day.

p.s tax evasion is illegal. i don’t condone it but i’m good at it. :laughing:

limeyphil:
The night out allowance that you say is the maximum is an agreed amount between the tax man and the RHA.
You can agree an alternative amount with your tax office. and with things becoming more expensive by the week then you will be able to agree quite a substancial amount.
If you are doing continental work then you can claim a much higher subsistance living allowance.
You can claim a meal allowance each day. you could pay him some extra out of petty cash where receipts are not normally audited as it is done as one lump. The m6 toll may be worth 2 trips a day.

p.s tax evasion is illegal. i don’t condone it but i’m good at it. :laughing:

Why not just divide the RHA membership fee by the amount of drivers you employ and give them it as a bonus.

repton:

Shaun6820:
If you can pay a driver night out money (tax free) does that mean if you are an owner driver,can you pay yourself night out money tax free■■?

As long as you’re actually doing nights out then yes you can.

Paul

No you can’t. Now without a receipt, anyhow, or not in my tax area. I can book into a £200.00 a night hotel, spend another £100.00 on food, no problem at all, as long as I have receipts, but I can’t claim £20.00 subsistence :frowning:

renaultman:
No you can’t. Now without a receipt, anyhow, or not in my tax area. I can book into a £200.00 a night hotel, spend another £100.00 on food, no problem at all, as long as I have receipts, but I can’t claim £20.00 subsistence :frowning:

that’s how I understand it too…

Denis F:

renaultman:
No you can’t. Now without a receipt, anyhow, or not in my tax area. I can book into a £200.00 a night hotel, spend another £100.00 on food, no problem at all, as long as I have receipts, but I can’t claim £20.00 subsistence :frowning:

that’s how I understand it too…

pay it to yourself through petty cash. All you show is that you’ve topped up the petty cash by £■■■ each week/month/quarter.

limeyphil:

Denis F:

renaultman:
No you can’t. Now without a receipt, anyhow, or not in my tax area. I can book into a £200.00 a night hotel, spend another £100.00 on food, no problem at all, as long as I have receipts, but I can’t claim £20.00 subsistence :frowning:

that’s how I understand it too…

pay it to yourself through petty cash. All you show is that you’ve topped up the petty cash by £■■■ each week/month/quarter.

You even need receipts for petty cash items though :cry:

Hmm, I was under the impression that the permitted 20-something quid was one of the tax free expenses you could pay without needing proof that you had incurred the expense, but I can’t find anything to back that up so I could well be wrong.

I’ve yet to work for anyone that needs proof of expense from an employee before paying a tax free night out payment though, surely they can’t all be committing tax fraud?

Paul

repton:
Hmm, I was under the impression that the permitted 20-something quid was one of the tax free expenses you could pay without needing proof that you had incurred the expense, but I can’t find anything to back that up so I could well be wrong.

I’ve yet to work for anyone that needs proof of expense from an employee before paying a tax free night out payment though, surely they can’t all be committing tax fraud?

Paul

It’s one of those anomalies (sp)? I can pay up to about £25 a nightt cash to a driver as night out money, plus meal allowance, all without receipts (I think it varies from tax area to tax area) but as an owner driver I can’t claim a penny without a receipt.

As a self employed agency driver,I can claim £9 per day meal allowance,without putting in a receipt.

I believe that is also what Stobarts pay their guys.

My accountant says that is fine.

Ken.

Quinny:
As a self employed agency driver,I can claim £9 per day meal allowance,without putting in a receipt.

I believe that is also what Stobarts pay their guys.

My accountant says that is fine.

Ken.

Its £12.15 now ken.

correct me if Im wrong but
if you are a ltd co then you are an employee of the company so you should be able to pay night out money etc without receipts