In September 2017 HMRC backtracked on a change introduced in April 2016 regarding overnight expenses for truck drivers. Following negotiations with the Road Haulage Association HMRC have agreed to reinstate fixed tax free payments for overnight stays. The agreed amounts are £26.20 where the driver stays in the cab and £34.90 where they stay in other accommodation.
There are some strings attached but these should not prove difficult to deal with. Firstly, as an employer you need to be satisfied that some cost will be incurred. This could include food bought at a supermarket for example, so should not be a difficult condition to meet. Secondly employers will have to ask HMRC for permission to use the fixed rate amounts. This should be a simple administrative task.
If you as an employer think that these rates are not high enough you can apply to HMRC for a bespoke arrangement, which should be considered on its merits. You can also pay drivers £5 per night tax free for “incidental” overnight expenses if they are in the UK and £10 if outside the UK.
If you would like any information regarding these haulage industry changes please contact us for further guidance.