Taxed on per diem - can i claim tax relief ?
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bobula
Posts: 63 Forumite
I work world wide as an engineer - working for short periods(between 1 day and 6 weeks) in many different countries.
On top of my wage / Day rate when im abroad, I receive a per diem of 50USD flat rate for food which is given to me in my monthly pay itemized as "living allowance" This is then included rightly or wrongly - I'm not sure in my tax and NI contribution calculation.
A colleague has sent me through form https://www.gov.uk/government/publications/income-tax-tax-relief-for-expenses-of-employment-p87
and reckons i can claim back tax relief for this "living allowance" under general expenses section.
How ever I'm an engineer not a tax accountant and it seems too easy to me. The only thing i do know is that it costs me more than i get after tax for eating in most countries.
Any guidance appreciated.
On top of my wage / Day rate when im abroad, I receive a per diem of 50USD flat rate for food which is given to me in my monthly pay itemized as "living allowance" This is then included rightly or wrongly - I'm not sure in my tax and NI contribution calculation.
A colleague has sent me through form https://www.gov.uk/government/publications/income-tax-tax-relief-for-expenses-of-employment-p87
and reckons i can claim back tax relief for this "living allowance" under general expenses section.
How ever I'm an engineer not a tax accountant and it seems too easy to me. The only thing i do know is that it costs me more than i get after tax for eating in most countries.
Any guidance appreciated.
0
Comments
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technically speaking the employer needs approval from HMRC to pay a per diem rate tax free otherwise it is classed as a round sum allowance and is taxed
when working overseas HMRC also publish specific rates based on allowances per country https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/359797/2014_Worldwide_subsistence_rates.pdf
at USD 50/day (covering I assume food only as accommodation is paid for another way?) you will in most cases be well below the max allowed. However that does not mean you can claim up to the allowed amount
you are however correct in thinking you can claim the difference between your actual (receipted) expenditure and the $50 you received. Obviously you get tax relief on that, not a refund of the actual value.0 -
cheers for the reply ,
yes accommodation is covered by the company , usually in a staff ho
use or hotel.
so what your saying is that my 34 quid is taxable as wages and NI (which after tax is about 23 quid for 3 meals.... just about buys you a kebab in perth australia
)
and i cant claim any relief for the fact the flat rate expenses its a taxable perk ....
bummer0
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