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