EIM02760 - Employment income: incidental overnight expenses: example
An employee stays in a hotel for one night as part of a business trip. His employer pays him an allowance of 拢6 to cover incidental expenses.
The employee is taxable on the whole of the 拢6 unless 拢1 is reimbursed within a reasonable time. The 拢6 cannot be paid tax free under the incidental overnight expenses legislation because it exceeds the permitted amount, see EIM02730.