What is Travel & Subsistence?
Travel and Subsistence is a method of replacing taxable pay with tax and National Insurance Contribution (NIC) free payments.
It allows any employees that are travelling to temporary places of work i.e. agency workers, mobile workers and site-based workers (such as security guards and cleaners) tax relief on certain expenses incurred for travelling to and from or at the temporary place of work - such as expenses for meals.
By enabling your temporary employees to claim travel and subsistence, they will pay less tax and NIC and increase their take home pay. You benefit as an employer by reducing your employers NIC payment and you can also decide how you choose to split the savings with your workers.
The savings can be significant, dependant upon your volume and pay rates.
Any travel and subsistence arrangement is pre-approved in the form of a dispensation from HMRC. The dispensation will give sign off on contracts, policies, procedures and systems and replace the need to report any expenses on a P11DX.
Zeel works very closely with some of the leading advisors in the specialist area of travel and subsistence. We would be more than happy to refer you to anyone on our carefully selected panel.
For more information regarding travel and subsistence and to find out whether it is something that could benefit your business then please call 0845 3131311.
