Four Parts in One Single Form
Part A – Travel Request & Authorisation. Destination, business purpose, travel dates/period, mode of transport, estimated costs, and formal management approval.
Part B – Subsistence & Per Diem Allowances (Meal Allowances). Daily absence times, qualifying hours, benchmark scale rates / per diem rates, provided meals, mandatory deductions, and calculated reimbursement amounts.
Part C – Business Mileage & Travel Costs. Journey details, route, vehicle type, business miles travelled, applicable HMRC Mileage Allowance Payment (MAP) rates, and total claim amount.
Part D – Accommodation and Incidental Expenses. Receipted actual expense reimbursement (hotel accommodation, parking fees, tolls, public transport, and qualifying incidental overnight expenses).
At the bottom of the form: total business expenses claimed, deduction of any company advance payments, and the net balance payable to the employee.
Meal Deductions and Provided Subsistence
Where the employer or a third party (such as a conference organiser or client) provides a meal free of charge during qualifying business travel, the corresponding HMRC benchmark scale rate cannot be paid tax-free. HMRC does not operate a percentage-reduction scheme: the rate for the meal in question is simply unavailable, because the employee has not actually incurred the cost.
| Scenario | Effect on the HMRC benchmark scale rate |
|---|---|
| Breakfast included in the hotel tariff | The 5-hour rate cannot be claimed in respect of that meal |
| Lunch provided at a conference or client site | The 5-hour rate cannot be claimed in respect of that meal |
| Evening meal provided | The 15-hour (late evening) element cannot be claimed |
| All meals provided | No benchmark scale rate is payable tax-free for the day |
The restriction applies strictly whenever a meal is provided or made available at no cost to the employee — regardless of whether the employee chooses to consume it. Scale rates exist to reimburse expenditure genuinely incurred; where no cost falls on the employee, any payment made is taxable earnings.
For this reason, Part B provides dedicated checkboxes per day rather than an ambiguous free-text field.
Permanent Workplace vs. Temporary Workplace Determines Eligibility
Under HMRC rules (Section 337–339 of the Income Tax (Earnings and Pensions) Act 2003 / ITEPA 2003), whether travel qualifies for tax-free expense reimbursement depends on whether the destination is a permanent workplace or a temporary workplace:
- Travel between an employee's home and a permanent workplace constitutes ordinary commuting — which is not eligible for tax-free expense reimbursement or tax relief.
- Travel to a temporary workplace for the purpose of performing employment duties qualifies as business travel — making tax-free mileage allowances (approved MAPs), subsistence scale rates, and necessary travel expenses reimbursable without tax or National Insurance liability.
The employment contract and operational patterns determine the status of the workplace. This must be clearly documented, as HMRC auditors routinely examine workplace determinations and travel logs during employer compliance reviews.
The 24-Month Rule for Temporary Workplaces
Under HMRC rules, a location ceases to be a temporary workplace if an employee is assigned to work there for a period of continuous work lasting — or expected to last — more than 24 months (and they spend 40% or more of their working time there). As soon as an assignment is expected to exceed 24 months, the site is treated as a permanent workplace, and travel and subsistence expenses immediately cease to be eligible for tax relief.
Travel Time and the Working Time Regulations 1998
The financial reimbursement of business travel expenses does not dictate whether travel time constitutes statutory working time. That assessment is governed by the Working Time Regulations 1998 (WTR 1998), relevant case law (such as Tyco on peripatetic workers), and individual contracts of employment.
In practice: Travel hours must be recorded under dedicated categories within your Time Tracking system. This is crucial for demonstrating compliance with the statutory 48-hour average weekly working limit (Regulation 4) and ensuring employees receive their mandatory 11 consecutive hours of daily rest in each 24-hour period (Regulation 10). For example, if business travel finishes at 11:00 PM, the employee's earliest statutory start time on the following working day is 10:00 AM.
Verify Current HMRC Approved Rates
Approved statutory rates — including HMRC Mileage Allowance Payments (MAPs), approved benchmark scale rates for subsistence, and worldwide subsistence rates — are updated periodically by HM Revenue & Customs. Consequently, this template deliberately avoids hard-coding static amounts; always verify and apply the current HMRC advisory or approved scale rates prior to finalising each payroll run.