I wondered if anyone could help -
I have previously paid my drivers overnight allowance when they stay away from the base in accordance with HMRC guidlines as advised on their website on EIM66110 - hmrc.gov.uk/manuals/eimanual/eim66110.htm
Evry year previosly I have included these figures on the P11D as advised by RHA as I don’t have an agreed dispensation with my local HMRC office - rha.uk.net/docs/internet/emp … 202010.pdf
which states -
P11D’s
The mid-day meal allowance and overnight subsistence allowance should be included in P11D’s unless the company concerned has agreed dispensation with their own local HMRC office.
However this year, one of my drivers has received a bill from the tax office to pay tax on the total amount of overnight subsistance he has received. The tax office have looked at the figures and agreed it is within the rates and that I shouldn’t have been including it on the P11D. I have now had to resubmit the p11D’s as 0 figures. The other drivers haven’t received a bill despite receiving similar expenses.
I wondered if other drivers that receive Overnight allowance from their employers get a P11D each year?
Also have any other drivers had similar problems with the tax office over this?
Anyone know who is giving the correct advice - HMRC or RHA?
i had this out with my boss the other day.
according to him,
it is best to get a dispensation from your local hmrc office .
the rates for nights out are a max of £23.50 net ( £25.00 gross ) anything above that then the driver will be taxed. i think,
as for meal allowance i cant remember.
It is stupid - why should you have to get a dispensation for something that the tax office have on their website. You don’t need a dispensation for your tax code.
Owner Drivers:
IAnyone know who is giving the correct advice - HMRC or RHA?
Thanks
I dont what is the correct advice, but I would ask the taxman. and insist its in letter form from them, not just an Email. then when they come knocking you’ve got something to shove under their noses
Owner Drivers:
have any drivers had P11D’s for their overnight allowance?
Nope. We get £29.86 and we get 75% of that, £22.39, untaxed and the other 25%, £7.47, taxed as we have sleeper cabs. I’ve only been an employed driver for the last 4 years, since 1989, and in that time the night out money has always been paid this way and I have never received a P11D. we also get a meal allowance of £10.90 a week, I know, £2.18 a day doesn’t even buy a coffee, and that isn’t taxed either.
We have just had a pay rise across the board so that night out, and the meal allowance rate, will be going up a little but the night out will still be split 75%/25% for tax.
I understand the HMRC and RHA has information saying you should report expenses including nioghts out on the P11D, but I never have, and on various PAYE investigations I’ve never had anyone ever mentioned it.
I pay £22 per night out, soon to be increased to £23, just to keep it under the rate agreed between the RHA and HMRC. This is 75% of the nationally agreed rate as the truck has a sleeper cab. The full 100% could be used if you didn’t have a sleeper cab.
The £2 a day tax free meat allowance hasn’t increased since the 1980’s, I tried arguing for a dispensation with my local tax office to increase it to £5 a day, but despite sending receipts etc the HMRC kept asking for more evidence so I eventually got fed up with it and gave up. The RHA has also been unable to get an increase. If you pay more, ensure you have a dispensation in writing to prove it.
If I was to pay drivers, for example £30 per night out without taxing it under PAYE, I would have to report this on the P11D, and the employee would receive a demand for tax, to be collected through their tax code…
