Any registered company in business would need to consider travel and subsistence rates for their employees as part of the regulated tax requirement. Some tax rates can be quite high on various sectors which might incur a higher cost on companies and not benefit the employees. However, with proper travel and subsistence rates, both employee and employer can benefit.
Benefits
The travel and subsistence option is an available cost savings strategy that benefits both the employee and employer as it can replace taxable pay via NIC free payments and taxes. This scheme allows traveling employees to various tax reliefs on their expenses.
Such schemes benefit mobile workers, site workers and agency workers that include cleaners and security guards who need not be taxed on various travel expenses such as meals and travel expenses as these are considered work related necessities. Employers need to provide assistance on claiming travel and subsistence benefits for employees to enjoy reduced taxes and increased take home pay.
Employers would also enjoy making some savings from such schemes as negotiations can be conducted with employees in splitting the savings. There should be good travel and subsistence rates that would benefit both parties on NIC and reduced taxes. It is possible for both parties to enjoy a significant reduction of taxes with the proper attractive rates on allowable travel and subsistence expenses depending on rates and volume.
Desirable rates
Good travel and subsistence rates are secured through approved HMRC dispensation with the proper contracts, company policies and procedures are used in place of expenses. There are professional tax and financial or legal consultants who can advice on the best of rates for travel and subsistence for any company. There are professional travel and subsistence advisors in the market who can offer attractive rates through a number of panels for the best travel and subsistence package.
These financial experts and professionals are armed with the relevant experience and knowledge on travel and subsistence issues for securing the best rates that would benefit the company.
Travel and subsistence expenses need not be complicated and tedious with the right professional assistance. A clear and workable solution is plausible with the right rate that benefits the company. Employees would enjoy tax free payments on a business journey even if travelled from home.
An employee is allowed to claim the currently approved mileage rate allowance by HMRC which is 45 pence for the first ten thousand miles with 25 pence every other mile in a year using their personal transportation including fuel.
