Quick one Jay - do you have the specific link with the allowable? Not seen that one and interested.
Immediate thoughts, without seeing the above, is that there can only be a BIK is the employee stayed more than the time required or had room service or took their partner so it became an extended or partial jolly.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I wasn't aware that there was a maximum allowed as long as receipts were provided and its a genuine business expense (for example we currently have workers working on a construction site 80 miles from our office). There is a maximum amount of cash per day for meal subsistence I know.
I usually book hotels on a company credit card so this rarely comes into play but on the odd occasion where someone has had to stay over unexpectedly and booked on their private card as long as a VAT receipt has been provided we reimburse in cash without going through payroll.
"Employers are not bound to use the benchmark room rate. Some employers may prefer to pay for accommodation and subsistence separately, perhaps reimbursing (or paying for) their employees actual, room only accommodation expenses, or paying a lower scale rate for accommodation. Such employers may then use the benchmark rates to pay tax/NIC free subsistence expense, as follows. They may do so using the over 5 hour, over 10 hour and total residual rates or, if they prefer, the separate amounts for meals, etc."
Thank-you for that link abacus. Its something I hadn't come across before and could help our firm as currently we are now having to pay slightly less meal allowance since our dispensation expired and the process to change it to the new exemption thing seems very complicated.
If someone travels to Canada and the rate shown is the equivalent to £134 to stay in a hotel but they actually spend £300 what are the implications? The trip is 100% for business travel.
If there are no implications then I am wondering what the purpose to the above link is?
Thanks, Jay
-- Edited by Jay3 on Wednesday 19th of April 2017 10:40:57 AM
"Employers are not obliged to use the published rates. It is always open to an employer to reimburse their employees actual, vouched expenses, or to negotiate a scale rate amount which they believe more accurately reflects their employees spending patterns. Employers wishing to negotiate such an amount must of course be able provide HMRC with evidence in support of their figures."
It's just a guide as to what is reasonable and not BIK related - sorry for any confusion.
Hi, I read it as all business related is allowable and in the case of overseas travel, 10 per night on incidental expenses are exempt - any amount over means all of the incidental must be reported. If business related and all usual conditions are met, I see no reason why you cannot stay at the Ritz, as an example.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
