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bigduckontax, Accountant
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My company is transferring an employee from India on a 5 year

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My company is transferring an employee from India on a 5 year visa. The employee says that in similar circumstances for a different employer: "Also, for the first 2 years in the UK, we claimed tax exemptions on any subsistence related payments based on bills submitted to the in-house finance team. These include (house rent + council tax) + any weekday breakfast and lunch bills + any weekday travel charges."
Could this be correct?
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Indeed, it could, two years being the maximum period for which subsistence payments for temporary duty can be made. Thereafter, the employee is deemed to have transferred their duty location. I do hope that my reply has been of assistance.
Customer: replied 2 years ago.

Thanks Keith. Are there any limitations/rules around this?

(And would it be 'temporary duties' if they come in on a 3 or 5 year visa?)

The staff are being transferred to the UK as part of their employment; the visa conditions are irrelevant unless. of course, they preclude working as many so do. There are limitations, but this matter is quite complex. The basics can be found here: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim05255 Please be so mind as to rate me before you leave the Just Answer site.
Customer: replied 2 years ago.

Just one more point. I assume that this would not work if we simply employed someone from India directly in the UK without them first being employed by our Indian subsidiary? That being the case, would they have to work for the Indian subsidiary for a 'qualifying period' before being transferred to get the benefits? Thanks.

Your surmise is correct. A new employee recruited from India would not qualify. The Gov UK guidance is silent on any qualification period. I would tend towards caution here.
Customer: replied 2 years ago.

OK, many thanks.

Delighted to have been of assistance.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

I just noticed that your first comment referred to 'subsistence' only. Did you deliberately not say travel? Or is any travel to/from home/workplace allowable?

No, by subsistence I meant travel and subsistence, my omission. Travel between residence to place of work on a daily basis is never allowable unless the individual is on temporary duty away from their normal place of work. An employee can only have one place of work, usually specified in their contract of employment.
Thnk you for your support.
Customer: replied 2 years ago.

So hang on then. I think you are now saying that the following from the original question are in fact NOT allowable: "...any weekday breakfast and lunch bills + any weekday travel charges." Please clarify.

You are transferring an existing employee from India to the UK. For the first two years this can be considered temporary duty, thereafter they are deemed to be permanently transferred for this purpose.
Customer: replied 2 years ago.

So their 'place of work' is India. So for two years any travel and subsistence costs whilst in the UK are reclaimable because anywhere in the UK is regarded as a temporary workplace.

Correct, as he is an existing employee whose original place of employment was India.
Customer: replied 2 years ago.

OK, I get it. Thanks.

Excellengt.
Customer: replied 2 years ago.

HI Keith, I have just read an article (below) where it indicates that 'temporary workplace relief' will not be available if the new workplace was intended to be the same for more than 2 years. Since the employees are transferred on a 5 year visa to the UK, and the UK is regarded as the 'temporary workplace' would this not actually be regarded as 'permanent'?

http://www.payandbenefitsmagazine.co.uk/article/tax-update-expenses-and-temporary-workplaces

Ye, I have looked, but a transfer of an employee from India would definitely trigger a temporary location. The lengtb of the visa is irrelevant.
Additional post to clear my question list.
Customer: replied 2 years ago.

OK, thanks.

I opted out in an attempt to clear my question list!
Nothing seems to be working, sigh.
Customer: replied 2 years ago.

I could rate again if you give me the option?

You have already rated me on your other similar question.
Customer: replied 2 years ago.
OK.
Post to clear my question list.