Q. The Sales Representative for My Company Leaves Home Early in the Morning for a Two-Day Business Trip that Includes an Overnight Stay. What can the Company Pay him as a Daily Allowance if he Does not Produce any Receipts?
A:By the end of day 1 the sales rep will have been traveling on business for more than 15 hours and will also be away from the office at 8 pm. He can thus be paid a tax-free meal allowance for that day totaling £25. However, the sales rep does need to provide evidence of their expenditure on food and drink during that trip. He can also be paid a tax-free £5 allowance for incidental expenses as he is away overnight and doesn’t need to produce a receipt for that.