Subsistence expenses

Produced by Tolley in association with Philip Rutherford
Employment Tax
Guidance

Subsistence expenses

Produced by Tolley in association with Philip Rutherford
Employment Tax
Guidance
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Introduction

Subsistence is the amount incurred as a consequence of business travel. Typically, it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel expenses guidance note for more information of when travel expenses are allowable.

If an employee qualifies for tax relief for a travel expense, they should also qualify for relief for the cost incurred on subsistence associated with the travel. These rules are different from the general rule for deductibility of expenses in that the subsistence expense does not need to be incurred ‘wholly and exclusively’. This is because with any subsistence there are likely to be elements of mixed or private purpose rather than a 100% business purpose, eg meals taken on a trip or overnight accommodation because the employee needs to eat and sleep.

As a result of the exemption for expenses that are either business expenses or the reimbursement of HMRC-approved amounts, it is incumbent on an employer to keep the necessary processes,

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Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company


Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties.   Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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  • 10 Jul 2026 13:50

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