A6.967 Subsistence allowances

Administration and compliance

A6.967 Subsistence allowances

A6.967 Subsistence allowances

HMRC has published benchmark scale rates for UK day subsistence payments1 and overseas subsistence2.

For years prior to 2016/17, if an employer wished to use the benchmark scale rates for UK day subsistence they needed to apply for a P11D dispensation. If the proposed payments were in excess of the scale rates, HMRC might have required a sampling exercise to be undertaken before granting the dispensation3.

No dispensation was required for overseas subsistence allowances provided that the employer paid no more than the HMRC published rate4.

A mistake could give rise to significant tax and National Insurance liability for the

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