It says ERF not RAF:
From an employed drivers point of view nothing has changed. You still get your tax free night out allowance up to £26.00 ish. The only change affects your employer, HMRC just need proof that the tax free night out money has been given to a driver who has actually had a night out !
You don’t need receipts adding up to the value of your night out money, HMRC just need proof e.g. Run/Log sheets, delivery notes, overnight parking receipt, vehicle tracking info (basically anything to show the driver was away). It’s not really any extra work for your employer as they should have all this info on file anyway ! If your employer is telling you that your night out money is now being taxed they are misinterpreting the legislation or just trying to rip you off !
The employer has to apply to HMRC to be able to make these Tax free payments. This is not a new thing as in the past Employers had to apply to be able to pay tax free meal allowances (most drivers are unaware of this as it was dealt with by their Employers accounts dept). Basically it’s a storm in a teacup fed by rumour and false information.
Not quite right
To pay the sleeper cab allowance tax free you need to obtain agreement from HMRC in the form of a
bespoke agreement. To get such an agreement, you will are required to:
get your drivers to retain receipts of the costs they have incurred when they are claiming the
sleeper cab allowance and
undertake a random check of those claims.
HMRC requires employers who are operating a ‘bespoke agreement’ to have a process in place for
checking evidence of expenditure incurred by drivers. The system requires drivers to retain evidence
of costs they incur in the form of receipts and for the employer to have a checking system in place.
That checking process needs to include an examination of a minimum of 10% of claims (ie drivers) in
each expenses period (normally one month) and that the employer will select drivers at random to
ensure that it is not always the same individuals who are selected.
In reviewing expenses it is not a case of ensuring the £26.20 was incurred on any given day because
HMRC accepts that taking one day with the next the £26.20 is a reasonable estimate of the costs a
driver is likely to incur. The demonstrated expense must be broadly in line, however. What qualifies
as broadly in line is not defined.
If a driver fails to provide adequate evidence when he/she is selected for review then you will need
to advise the driver of their failure to provide evidence that they have incurred expense and carry
out a subsequent review to see if they are now complying. For those drivers who subsequently fail to
provide adequate evidence HMRC would expect them to no longer be eligible to receive the
payment free of tax and National Insurance. RHA
It says ERF not RAF:
From an employed drivers point of view nothing has changed. You still get your tax free night out allowance up to £26.00 ish. The only change affects your employer, HMRC just need proof that the tax free night out money has been given to a driver who has actually had a night out !
You don’t need receipts adding up to the value of your night out money, HMRC just need proof e.g. Run/Log sheets, delivery notes, overnight parking receipt, vehicle tracking info (basically anything to show the driver was away). It’s not really any extra work for your employer as they should have all this info on file anyway ! If your employer is telling you that your night out money is now being taxed they are misinterpreting the legislation or just trying to rip you off !
The employer has to apply to HMRC to be able to make these Tax free payments. This is not a new thing as in the past Employers had to apply to be able to pay tax free meal allowances (most drivers are unaware of this as it was dealt with by their Employers accounts dept). Basically it’s a storm in a teacup fed by rumour and false information.
Not quite right
To pay the sleeper cab allowance tax free you need to obtain agreement from HMRC in the form of a
bespoke agreement. To get such an agreement, you will are required to:
get your drivers to retain receipts of the costs they have incurred when they are claiming the
sleeper cab allowance and
undertake a random check of those claims.
HMRC requires employers who are operating a ‘bespoke agreement’ to have a process in place for
checking evidence of expenditure incurred by drivers. The system requires drivers to retain evidence
of costs they incur in the form of receipts and for the employer to have a checking system in place.
That checking process needs to include an examination of a minimum of 10% of claims (ie drivers) in
each expenses period (normally one month) and that the employer will select drivers at random to
ensure that it is not always the same individuals who are selected.
In reviewing expenses it is not a case of ensuring the £26.20 was incurred on any given day because
HMRC accepts that taking one day with the next the £26.20 is a reasonable estimate of the costs a
driver is likely to incur. The demonstrated expense must be broadly in line, however. What qualifies
as broadly in line is not defined.
If a driver fails to provide adequate evidence when he/she is selected for review then you will need
to advise the driver of their failure to provide evidence that they have incurred expense and carry
out a subsequent review to see if they are now complying. For those drivers who subsequently fail to
provide adequate evidence HMRC would expect them to no longer be eligible to receive the
payment free of tax and National Insurance. RHA
So, which bit is “Not quite right” ?
Err, all of it. Proof that you had a night out is no lnger sufficient, as has been explained you need to be able to show that you incurred expenses amounting to your night out allowance, the only acceptable proof to HMRC are receipts. You don’t have to show all your receipts but enough to show that you spend the money on average. In other words if you spend your night out money then HMRC are happy to treat it as a tax free expense reimbursement, but if you try to live for nothing and treat it as wages, they want their share. And what the tax man wants, eventually he tends to get.
I’m not surprised that this has happened. When the MPs expense scandal was going on, there where many talking heads on the TV and radio saying how outrageous it was, that MPs could claim expenses without receipts and nobody else could. At the time I thought, I know another group who can, trouble ahead.
Harry Monk:
The simple answer is for all truck drivers to refuse to do nights out.
Or not do nights out unless paid for it,
The problem is too many companies and drivers have looked at night out money as part of the pay package, many drivers have thought it was inconvienience money for being away, not that it was there as an allowance for expenses incurred by being away.
So if drivers want inconvienience money they’ll have to demand it from the company and get taxed on it, then it does become part of the pay package. Of course we know many won’t and will just complain about losing night out money, but will take no action.
biggriffin:
Start keeping receipts from macdees, get a receipts when you get your duvets, n sleeping bag cleaned, when buying your food shop for the week, on Saturday put family shop through first, then put what you take to work thro separate, remember, bog rolls, shower gel, toothpaste, bottled water, cleaning polish for the dash Tec, it’s all tax deductible.
If you had a decent gaffer, he would supply all cleaning products for the truck. Why on earth do drivers pay and try and claim it back. No wonder your jobs are getting worse.
there is nothing wrong invoicing your gaffer for said utensils.
sapper:
I get £26.20 per night out tax free, for every night I am parked up somewhere, in the course of my employ, if it gets to the stage, they, (Hmrc) want to challenge this, [zb] them, I will no longer do nights out, when a farkin tory barsteward can claim an allowance of thousands for a second home, free of tax, which I pay for through my income tax, and the [zb] is cheating the system, well someone needs a big [zb] kick in the balls.
Sapper
And you think labour do not claim second house expenses … believe it or not it’s cheaper per year than keeping them in a hotel as they have to be in London and their constitutes area… you choose to do nights out, ifmyou don’t like he system try and be an MP and join hem … how can you blame a person from milking the system if it’s open to abuse.■■
years ago, MPs used to get the last train home from that there London. Then, they started using the Union Jack club ( you know for sauaddies, who kill for these parasitises. ) then the soldiers couldn’t get in.
It says ERF not RAF:
From an employed drivers point of view nothing has changed. You still get your tax free night out allowance up to £26.00 ish. The only change affects your employer, HMRC just need proof that the tax free night out money has been given to a driver who has actually had a night out !
You don’t need receipts adding up to the value of your night out money, HMRC just need proof e.g. Run/Log sheets, delivery notes, overnight parking receipt, vehicle tracking info (basically anything to show the driver was away). It’s not really any extra work for your employer as they should have all this info on file anyway ! If your employer is telling you that your night out money is now being taxed they are misinterpreting the legislation or just trying to rip you off !
The employer has to apply to HMRC to be able to make these Tax free payments. This is not a new thing as in the past Employers had to apply to be able to pay tax free meal allowances (most drivers are unaware of this as it was dealt with by their Employers accounts dept). Basically it’s a storm in a teacup fed by rumour and false information.
Not quite right
To pay the sleeper cab allowance tax free you need to obtain agreement from HMRC in the form of a
bespoke agreement. To get such an agreement, you will are required to:
get your drivers to retain receipts of the costs they have incurred when they are claiming the
sleeper cab allowance and
undertake a random check of those claims.
HMRC requires employers who are operating a ‘bespoke agreement’ to have a process in place for
checking evidence of expenditure incurred by drivers. The system requires drivers to retain evidence
of costs they incur in the form of receipts and for the employer to have a checking system in place.
That checking process needs to include an examination of a minimum of 10% of claims (ie drivers) in
each expenses period (normally one month) and that the employer will select drivers at random to
ensure that it is not always the same individuals who are selected.
In reviewing expenses it is not a case of ensuring the £26.20 was incurred on any given day because
HMRC accepts that taking one day with the next the £26.20 is a reasonable estimate of the costs a
driver is likely to incur. The demonstrated expense must be broadly in line, however. What qualifies
as broadly in line is not defined.
If a driver fails to provide adequate evidence when he/she is selected for review then you will need
to advise the driver of their failure to provide evidence that they have incurred expense and carry
out a subsequent review to see if they are now complying. For those drivers who subsequently fail to
provide adequate evidence HMRC would expect them to no longer be eligible to receive the
payment free of tax and National Insurance. RHA
So, which bit is “Not quite right” ?
Err, all of it. Proof that you had a night out is no lnger sufficient, as has been explained you need to be able to show that you incurred expenses amounting to your night out allowance, the only acceptable proof to HMRC are receipts. You don’t have to show all your receipts but enough to show that you spend the money on average. In other words if you spend your night out money then HMRC are happy to treat it as a tax free expense reimbursement, but if you try to live for nothing and treat it as wages, they want their share. And what the tax man wants, eventually he tends to get.
I’m not surprised that this has happened. When the MPs expense scandal was going on, there where many talking heads on the TV and radio saying how outrageous it was, that MPs could claim expenses without receipts and nobody else could. At the time I thought, I know another group who can, trouble ahead.
I can see what will happen if you only have to show the odd days receipts. 1 day per week the full £25 will be spent on a nice evening meal etc . Then when HMRC ask for proof that the night out allowance is been used properly these are the receipts that will be handed over.
It says ERF not RAF:
From an employed drivers point of view nothing has changed. You still get your tax free night out allowance up to £26.00 ish. The only change affects your employer, HMRC just need proof that the tax free night out money has been given to a driver who has actually had a night out !
You don’t need receipts adding up to the value of your night out money, HMRC just need proof e.g. Run/Log sheets, delivery notes, overnight parking receipt, vehicle tracking info (basically anything to show the driver was away). It’s not really any extra work for your employer as they should have all this info on file anyway ! If your employer is telling you that your night out money is now being taxed they are misinterpreting the legislation or just trying to rip you off !
The employer has to apply to HMRC to be able to make these Tax free payments. This is not a new thing as in the past Employers had to apply to be able to pay tax free meal allowances (most drivers are unaware of this as it was dealt with by their Employers accounts dept). Basically it’s a storm in a teacup fed by rumour and false information.
Not quite right
To pay the sleeper cab allowance tax free you need to obtain agreement from HMRC in the form of a
bespoke agreement. To get such an agreement, you will are required to:
get your drivers to retain receipts of the costs they have incurred when they are claiming the
sleeper cab allowance and
undertake a random check of those claims.
HMRC requires employers who are operating a ‘bespoke agreement’ to have a process in place for
checking evidence of expenditure incurred by drivers. The system requires drivers to retain evidence
of costs they incur in the form of receipts and for the employer to have a checking system in place.
That checking process needs to include an examination of a minimum of 10% of claims (ie drivers) in
each expenses period (normally one month) and that the employer will select drivers at random to
ensure that it is not always the same individuals who are selected.
In reviewing expenses it is not a case of ensuring the £26.20 was incurred on any given day because
HMRC accepts that taking one day with the next the £26.20 is a reasonable estimate of the costs a
driver is likely to incur. The demonstrated expense must be broadly in line, however. What qualifies
as broadly in line is not defined.
If a driver fails to provide adequate evidence when he/she is selected for review then you will need
to advise the driver of their failure to provide evidence that they have incurred expense and carry
out a subsequent review to see if they are now complying. For those drivers who subsequently fail to
provide adequate evidence HMRC would expect them to no longer be eligible to receive the
payment free of tax and National Insurance. RHA
So, which bit is “Not quite right” ?
Err, all of it. Proof that you had a night out is no lnger sufficient, as has been explained you need to be able to show that you incurred expenses amounting to your night out allowance, the only acceptable proof to HMRC are receipts. You don’t have to show all your receipts but enough to show that you spend the money on average. In other words if you spend your night out money then HMRC are happy to treat it as a tax free expense reimbursement, but if you try to live for nothing and treat it as wages, they want their share. And what the tax man wants, eventually he tends to get.
I’m not surprised that this has happened. When the MPs expense scandal was going on, there where many talking heads on the TV and radio saying how outrageous it was, that MPs could claim expenses without receipts and nobody else could. At the time I thought, I know another group who can, trouble ahead.
I don’t want to keep going on about this but you are confusing 2 different HMRC agreements (as are the RHA, judging by your copy/paste off their website ?).
The ‘Bespoke Agreement’ to which you refer is only relevant to Companies who want to pay an amount to their drivers above the agreed ‘Industry Scale Rate’ which is currently £26.20 .
If the Company want to pay their drivers an amount up to the agreed ‘Industry Scale Rate’ (which is the majority of us) of £26.20 they have to apply to HMRC for an ‘Approval Notice’ (which is not a Bespoke Agreement). When applying for an Approval Notice to use the ‘Industry Scale Rate’ the Company will state details of its own checking system it has in place. HMRC will then decide if the ‘checking system’ the employer submits on the application is suitable, if it is, an ‘Approval Notice’ will be issued allowing tax free night out payments to be made.
Below are a couple of paragraphs I copied off the HMRC website (updated 27 June 2017).
Overnight allowances in the UK HMRC has agreed a reasonable amount employers can pay to lorry drivers for nights away in the United Kingdom provided the employer has a checking system in place. Although this is a bespoke rate (see EIM30250), amounts up to this level can be paid under the terms of an approval notice without an employer needing to undertake a sampling exercise. The rate has been agreed as a standard industry rate EIM30255. Where the employer knows that the driver uses their 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. 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 expenses the driver incurred while staying overnight away from home and the permanent workplace (if any). Where documentary evidence is needed to support a checking system for scale rate subsistence payments, it may include: receipts. drivers’ log sheets. drivers’ expenses claims. receipts obtained on payment for lodging (for example hotel bills). parking receipts and itinerary records kept by the employer in the pay records, or separately, as evidence of nights away from home and permanent workplace.
The reason I know this (other than reading through all the info on the HMRC website) is I have gone through the process of applying for an ‘Approval Notice’ to use the ‘Industry Scale Rate’ and have also just received the ‘Approval Notice’ allowing tax free night out payments of up to £26.20 to be made (without having to account for every penny by means of receipts, how can you when night out money goes towards upkeep of bedding etc ?).
Personally, I think too many ‘accounts depts/transport offices’ are overthinking a minor change in legislation. As far as I’m concerned, the only real change is now you/your employer need permission off HMRC to be able to pay tax free night out money.
You will only be liable for taxation on your night out money if you/your employer have not applied to HMRC for an Approval Notice or the night out money is higher than the agreed rate !
It says ERF not RAF:
From an employed drivers point of view nothing has changed. You still get your tax free night out allowance up to £26.00 ish. The only change affects your employer, HMRC just need proof that the tax free night out money has been given to a driver who has actually had a night out !
You don’t need receipts adding up to the value of your night out money, HMRC just need proof e.g. Run/Log sheets, delivery notes, overnight parking receipt, vehicle tracking info (basically anything to show the driver was away). It’s not really any extra work for your employer as they should have all this info on file anyway ! If your employer is telling you that your night out money is now being taxed they are misinterpreting the legislation or just trying to rip you off !
The employer has to apply to HMRC to be able to make these Tax free payments. This is not a new thing as in the past Employers had to apply to be able to pay tax free meal allowances (most drivers are unaware of this as it was dealt with by their Employers accounts dept). Basically it’s a storm in a teacup fed by rumour and false information.
Not quite right
To pay the sleeper cab allowance tax free you need to obtain agreement from HMRC in the form of a
bespoke agreement. To get such an agreement, you will are required to:
get your drivers to retain receipts of the costs they have incurred when they are claiming the
sleeper cab allowance and
undertake a random check of those claims.
HMRC requires employers who are operating a ‘bespoke agreement’ to have a process in place for
checking evidence of expenditure incurred by drivers. The system requires drivers to retain evidence
of costs they incur in the form of receipts and for the employer to have a checking system in place.
That checking process needs to include an examination of a minimum of 10% of claims (ie drivers) in
each expenses period (normally one month) and that the employer will select drivers at random to
ensure that it is not always the same individuals who are selected.
In reviewing expenses it is not a case of ensuring the £26.20 was incurred on any given day because
HMRC accepts that taking one day with the next the £26.20 is a reasonable estimate of the costs a
driver is likely to incur. The demonstrated expense must be broadly in line, however. What qualifies
as broadly in line is not defined.
If a driver fails to provide adequate evidence when he/she is selected for review then you will need
to advise the driver of their failure to provide evidence that they have incurred expense and carry
out a subsequent review to see if they are now complying. For those drivers who subsequently fail to
provide adequate evidence HMRC would expect them to no longer be eligible to receive the
payment free of tax and National Insurance. RHA
So, which bit is “Not quite right” ?
Err, all of it. Proof that you had a night out is no lnger sufficient, as has been explained you need to be able to show that you incurred expenses amounting to your night out allowance, the only acceptable proof to HMRC are receipts. You don’t have to show all your receipts but enough to show that you spend the money on average. In other words if you spend your night out money then HMRC are happy to treat it as a tax free expense reimbursement, but if you try to live for nothing and treat it as wages, they want their share. And what the tax man wants, eventually he tends to get.
I’m not surprised that this has happened. When the MPs expense scandal was going on, there where many talking heads on the TV and radio saying how outrageous it was, that MPs could claim expenses without receipts and nobody else could. At the time I thought, I know another group who can, trouble ahead.
I don’t want to keep going on about this but you are confusing 2 different HMRC agreements (as are the RHA, judging by your copy/paste off their website ?).
The ‘Bespoke Agreement’ to which you refer is only relevant to Companies who want to pay an amount to their drivers above the agreed ‘Industry Scale Rate’ which is currently £26.20 .
If the Company want to pay their drivers an amount up to the agreed ‘Industry Scale Rate’ (which is the majority of us) of £26.20 they have to apply to HMRC for an ‘Approval Notice’ (which is not a Bespoke Agreement). When applying for an Approval Notice to use the ‘Industry Scale Rate’ the Company will state details of its own checking system it has in place. HMRC will then decide if the ‘checking system’ the employer submits on the application is suitable, if it is, an ‘Approval Notice’ will be issued allowing tax free night out payments to be made.
Below are a couple of paragraphs I copied off the HMRC website (updated 27 June 2017).
Overnight allowances in the UK HMRC has agreed a reasonable amount employers can pay to lorry drivers for nights away in the United Kingdom provided the employer has a checking system in place. Although this is a bespoke rate (see EIM30250), amounts up to this level can be paid under the terms of an approval notice without an employer needing to undertake a sampling exercise. The rate has been agreed as a standard industry rate EIM30255. Where the employer knows that the driver uses their 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. 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 expenses the driver incurred while staying overnight away from home and the permanent workplace (if any). Where documentary evidence is needed to support a checking system for scale rate subsistence payments, it may include: receipts. drivers’ log sheets. drivers’ expenses claims. receipts obtained on payment for lodging (for example hotel bills). parking receipts and itinerary records kept by the employer in the pay records, or separately, as evidence of nights away from home and permanent workplace.
The reason I know this (other than reading through all the info on the HMRC website) is I have gone through the process of applying for an ‘Approval Notice’ to use the ‘Industry Scale Rate’ and have also just received the ‘Approval Notice’ allowing tax free night out payments of up to £26.20 to be made (without having to account for every penny by means of receipts, how can you when night out money goes towards upkeep of bedding etc ?).
Personally, I think too many ‘accounts depts/transport offices’ are overthinking a minor change in legislation. As far as I’m concerned, the only real change is now you/your employer need permission off HMRC to be able to pay tax free night out money.
You will only be liable for taxation on your night out money if you/your employer have not applied to HMRC for an Approval Notice or the night out money is higher than the agreed rate !
This is correct. We are randomly selected to complete a log sheet of a weeks worth of expenditure and this placed on file at head office should HMRC ever want check. I get asked approximately 2/3 times a year it’s no great trauma and I don’t have to provide receipts as there is an arrangement in place.
sapper:
I will no longer do nights out, when a farkin tory barsteward can claim an allowance of thousands for a second home, free of tax, which I pay for through my income tax, and the [zb] is cheating the system, well someone needs a big [zb] kick in the balls.
Sapper
