Review and increase expense rates for employees traveling outside the UK

HMRC sets scale rate expenses for subsistence paid to employees who travel outside the UK, such as Cabin Crew. We feel the rates are not reflective or the real costs for people whose work takes them abroad, and that the way they are put into blocks of 5/10 or 24 hour blocks is completely unfair.

The Government recognises that employees who travel overseas for work, including cabin crew, incur additional costs and that employers need practical ways to reimburse those costs fairly. HMRC’s overseas scale rate system is intended to support this by providing a consistent, evidence based framework for tax free subsistence payments where employees are travelling abroad as part of their role.

Overseas scale rates are designed as an administrative easement to employers. They are not intended to mirror individual expenditure in every case, but to provide a standard set of benchmark amounts that most employers and employees can use without needing to keep and check receipts.

Employers are not required to use HMRC’s published scale rates if they believe these do not reflect their employees’ circumstances. Employers can agree bespoke rates with HMRC based on evidence of actual costs, or they can reimburse the actual costs incurred where receipts are available. These alternatives allow employers greater flexibility where working patterns, disruption or sector specific issues mean the standard rates are not appropriate.

The Government keeps all taxes under review as part of the policy making process. Any decisions on future changes in this area will be taken in the context of the wider public finances.

HM Treasury