Travel: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of the overseas scale rates.
Answered by James Murray
The Overseas Scale Rates are an administrative easement and do not limit the amount an employee can claim for. They reduce the need to provide evidence to support an employee’s claim for tax relief.
Employees travelling overseas for work have the same entitlement to tax relief whether they use the rates or not. An employee can claim tax relief on a higher value if that is appropriate, with the only distinction being they must provide receipts.
There will be occasions where OSR may not reflect the current prices in a particular location. In these cases, the employer can choose to reimburse the full expenses incurred by their staff, if receipts are kept. Should the employer choose not to reimburse all the actual expenses, the employee may claim tax relief on the difference from HMRC.
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