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
imgtext

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,

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
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.

Powered by Tolley+
  • 10 Jul 2026 13:50

Popular Articles

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more

Exemption ― burial and cremation

Exemption ― burial and cremationThis guidance note provides an overview of the VAT treatment of services that are provided in connection with the burial or cremation of human remains.VAT treatmentThe following services are exempt from VAT:•the disposal of the remains of the dead•making arrangements

14 Jul 2020 11:38 | Produced by Tolley Read more Read more

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more