Travel: Tax Allowances
The question
To ask the Chancellor of the Exchequer, whether she has plans to review and update the Overseas Scale Rates.
Answered by James Murray
Employers have a choice about whether to use the Overseas Scale Rates (OSR) or to pay the actual expenses incurred. If an employer pays actual expenses, they must check the employees’ receipts, but they do not have to do this if they use the OSR.
There will be occasions where OSR may not reflect the current prices in a particular location. If the employer chooses not to reimburse all of the actual expenses, the employee may claim tax relief on the difference from HMRC. The employee must provide HMRC with evidence such as receipts and what the employer has reimbursed.
The Government keeps all aspects of the tax system under review and any decisions on future changes will be taken in the context of the wider public finances.
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