Last updated: 14 October 2026
How much can you pay a sales rep for overnight business trips?
You can reimburse a sales rep’s actual costs of business travel, hotel accommodation and meals tax-free, as long as the trip is to a temporary workplace and the costs are reasonable. Alternatively, you can pay HMRC’s benchmark scale rates without receipts: £5 for a journey of 5 hours or more, £10 for 10 hours or more, £25 for 15 hours or more and still ongoing at 8pm, or £15 for a late evening meal when work runs past 8pm. On top of this, you can pay up to £5 a night (£10 abroad) for incidental overnight expenses such as phone calls home and newspapers.
HMRC benchmark scale rates (UK)
| Qualifying trip | Maximum tax-free payment |
| 5 hours or more away | £5 |
| 10 hours or more away | £10 |
| 15 hours or more, ongoing at 8pm | £25 |
| Breakfast (if leaving before 6am) | £5 |
| Late evening meal (working past 8pm) | £15 |
Accommodation
Hotel costs aren’t covered by a UK scale rate, so reimburse actual receipted costs, or use HMRC’s overseas accommodation and subsistence rates when abroad. A hotel at a reasonable standard for the area is fine; luxury costs above the business need may be taxable.
Incidental overnight expenses
| Where | Tax-free per night |
| UK | £5 |
| Abroad | £10 |
If you pay more than this, the whole amount becomes taxable, not just the excess.
Example
Natalie, a sales rep, spends 3 nights in Manchester visiting clients. Her employer pays her hotel bills of £360 directly, reimburses her receipted evening meals of £75, and pays £15 incidental expenses (£5 a night). None of this is taxable or reportable. If the employer had paid her a flat £50 a night “allowance” without checking costs, the excess over actual costs would be taxable through payroll.
Conditions for scale rates
- The trip must be qualifying business travel
- The employee must actually incur a cost on meals
- You need a checking system to confirm business trips
- Scale rates can’t be paid for travel to a permanent workplace
Bespoke rates
If your reps regularly spend more, you can apply to HMRC for approval of bespoke rates based on a sample of actual expenses.
Reporting
Exempt payments at or below HMRC rates don’t need to go on a P11D or through payroll. Payments above those rates, or flat allowances, are taxable and subject to NIC.
Common mistakes
- Paying a round-sum allowance with no checking system
- Paying £6 a night for incidentals, making the whole amount taxable
- Reimbursing travel to a regular office
- Not keeping hotel receipts
VAT on overnight costs
The business can reclaim VAT on hotel bills and meals for employees on business trips if it holds a valid VAT invoice addressed to the business. It can’t reclaim VAT on scale rate payments or incidental expenses, as there is no supply to the business.
Frequently asked questions
Can a rep claim alcohol with dinner?
Reasonable drinks with a meal are usually accepted.
What about staying with friends?
Pay incidental expenses only; no accommodation cost incurred.
Are overseas rates different?
Yes, HMRC publishes country-specific rates.
Can directors use scale rates?
Yes.
Related: 2nd class travel and 2-star hotels, claiming without hotel receipts and business travel for a sole director.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with expenses and payroll. See our payroll services service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
