"Per-diem" for travel costs

[lari]

Does anyone know whether a "per-diem" solution is possible in the UK?

So instead of filing and expensing all employees travel costs separately just giving a daily allowance and having the employees pay the travel costs themselves.

The big issue is that you end up with tons of small receipts for coffees, public transport and taxis and it would be easier to just give a lump sum to cover the costs each day.

 

[LABJES]

Would a dispensation from HMRC cover this ?

 

[lari]

Would a dispensation from HMRC cover this ?

Possibly. But applying for dispensation doesn't really change that it would be considered a benefit for the employees, and thus taxable?

 

[LABJES]

I recall a similar situation at a previous employer where service engineers were allowed a round sum allowance per day fro accomodation and food (I remember as they were all complaining it wasn't enough to cover the actual costs) and some other expenses were dipensated due to the large volume of info. However they were working away and a lot of internationall and long term service contracts so that may have made the difference!