Travel: Allowances

(asked on 18th January 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of scale rate expenses for accommodation and subsistence paid to cabin crew and other employees who travel outside of the UK.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 21st January 2021

The Overseas Scale Rates (OSR) guidance was last updated in February 2019 and applied from 6 April 2019.

The published rates are designed to reflect the average cost of subsistence, including local taxes and gratuities, when staying overseas. This will, of course, vary from case to case as well as city to city.

Employers can pay or reimburse employees’ allowable travel expenses free of tax and National Insurance contributions in two ways. They can pay the actual expenses or use the scale rates HM Revenue and Customs (HMRC) set. If they pay the actual expenses, they must check the employee’s receipts, but do not have to do this if they use the scale rates.

If an employee spends more than the amount their employer pays, they can claim tax relief on the difference. Guidance on how to do this can be found at: www.gov.uk/guidance/claim-income-tax-relief-for-your-employment-expenses-p87.

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