Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when HMRC last reviewed the overseas subsistence scale rates; what assessment she has made of the potential impact of those rates on employees working abroad, in the context of increases in the cost of food; and whether she plans to bring forward an updated schedule.

Where employers reimburse allowable travel expenses, tax relief is available provided the expenses are wholly, exclusively and necessarily incurred for work purposes.

Ordinarily, employers must hold evidence of the employee’s actual expenditure. However, to reduce administrative burdens on employers, HMRC allows expenses for travel outside the UK to be reimbursed without evidence up to the levels contained within the Overseas Scale Rates.

Where the Overseas Scale rates do not cover the expense incurred by employees, employers can still reimburse and provide tax relief provided they have appropriate evidence.

The Government keeps all taxes under review as part of the policy‑making process. Any decisions on future changes in this area will be taken in the context of the wider public finances.