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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4416
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I work for a company based in London and am currently on a

Customer Question

I work for a company based in London and am currently on a 12 month assignment in Scotland. As part of this I receive a £50/day per diem for days spent in Scotland. Do I need to declare this as part of my annual self assessment (I am on PAYE but also rent out a property) or are the per diem payments exempt?
Thanks
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
No, the reimbursement of reasonable travel and subsistence expenses is outside the scope of UK taxation. Here is the HMRC advice on this matter:
'When you can get tax relief for travel and subsistence costs
If you've got to make journeys for business purposes you can deduct your travelling expenses and any subsistence costs you've paid whilst on those journeys from your taxable income - so you'll pay less tax..What are business journeys
You can only get tax relief on the cost of business journeys. These are when, as part of your job:
You have to travel from one workplace to another - this includes travelling between your main 'permanent workplace' and a 'temporary workplace'
You've got to travel to or from a certain workplace because your job requires you to
Business journeys don't include:
Ordinary commuting - when you travel between your home (or anywhere that is not a workplace) and a place which counts as a permanent workplace
Private journeys - which have nothing to do with your job
If you're not sure if a place you travel to counts as a permanent workplace telephone HM Revenue & Customs for advice.'
Reimbursement of expenses for temporary duties is so commonplace as not to warrant comment. These payments do not need to be declared on your annual self assessment tax return.
I do hope I have put your mind at rest on this matter.
Customer: replied 3 years ago.

Hi Keith,

Thank you for your reply. That is reassuring and it sounds like I don't need to worry. If you don't mind I'd like to expand on a couple of details just to make sure you still think the same. As part of my assignment my employer also pays my accommodation in Scotland (they pay the rent directly to a letting agents). I have been in Scotland pretty much full time for the past 9 months with only a few trips back to London. In 3 months the assignment is over and I will return to London full time and no longer receive the per diem. Just wanted to clarify my situation as it does add up to quite a large additional sum over the 12 months.

Thanks again

Expert:  bigduckontax replied 3 years ago.
In my opinion it is outside the scope of UK Income Tax. In fact the daily allowance is positively stingy in today's financial environment. Just look at the levels of claim sculling about the recent Parliamentary scandal! I would not concern yourself in the slightest in the matter.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.