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Subsistence expenses paid to employees were within the scope of a dispensation

By Mark McLaughlin, June 2023

Subsistence payments from an employer to employees were not round sum allowances; the payments were within the scope of a dispensation and met the purported ‘qualifying conditions’, and it was not open to HMRC to assess any payment purportedly made under the dispensation. 

Summary 

Subsistence payments from an employer to employees were not round sum allowances; the payments were within the scope of a dispensation and met the purported ‘qualifying conditions’, and it was not open to HM Revenue and Customs (HMRC) to assess any payment purportedly made under the dispensation. 

Background 

The appellant company (NWMSL) made payments to its employees for subsistence payments based on scale rates set by HMRC. A dispute arose over whether those payments ought to be subject to income tax and National Insurance contributions (NICs). HMRC issued income tax

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