2nd February 2007, 10:00 AM
If subs are intended to cover the extra costs of working away from home, they should not be at a flat rate but should reflect the real costs on a project-by-project basis.
For instance, short-term self-catering accommodation can be expensive to rent(if you have a small number of people sharing and it is during peak tourist season) or cheap (if you have a larger number and it is out of season).
If they are not to be taxable, payments to cover such expenses need to be supported by evidence that the costs are genuine. The logical way to do this is through reclaiming expenses supported by receipts. I know this means waiting for the money, but it can also include an up-front 'float' to be discounted against the first expense claim.
If you are paying a flat rate as compensation for working away from home, that is a very different matter, and would probably be a taxable allowance.
For instance, my company repays genuine expenses on the receipt of a claim. They also pay an overnight allowance if you work away from home, which is taxable (£5, not increased for 11 years, which perhaps puts the perception of the plutoctatic consultant in perspective!).
1man1desk
to let, fully furnished
For instance, short-term self-catering accommodation can be expensive to rent(if you have a small number of people sharing and it is during peak tourist season) or cheap (if you have a larger number and it is out of season).
If they are not to be taxable, payments to cover such expenses need to be supported by evidence that the costs are genuine. The logical way to do this is through reclaiming expenses supported by receipts. I know this means waiting for the money, but it can also include an up-front 'float' to be discounted against the first expense claim.
If you are paying a flat rate as compensation for working away from home, that is a very different matter, and would probably be a taxable allowance.
For instance, my company repays genuine expenses on the receipt of a claim. They also pay an overnight allowance if you work away from home, which is taxable (£5, not increased for 11 years, which perhaps puts the perception of the plutoctatic consultant in perspective!).
1man1desk
to let, fully furnished