I'm just doing the year end for a client, and they have paid an employee £10 a day subsistence and £6 a day parking (Employee works away) Nothing on their payslip to indicate.
Previously there was no quibble if you stick to the published rates (£10 if away from home for more than 10 hours) providing you got a dispensation.
Now that dispensations no longer exist I know you can apply to the tax office before the start of the tax year so that it is tax free on the payroll or presumably report on P11D. However I can find no published rates for meal allowance after the rule change.
So Q1 is it a P11D job (I'm fairly certain it is) and Q2 is it tax free? Would the parking come under incidentals (£5 a night allowance or taxable on the whole) or can the parking be claimed (no receipts)?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
For the £10 per day at least I don't think they would need to go on P11d as according to HMRC here www.gov.uk/employer-reporting-expenses-benefits/dispensations if you are paying the approved flat rates. The parking I'm not 100% sure about, could you look up where they're parking and see how much it costs to see if they are reimbursing the correct amount?
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All thoughts are my own and should not be used as professional advice.
