EIM02770 | Employment income: incidental overnight expenses: example
From HM Revenue & Customs · Employment Income Manual
An employee stays in a hotel for 3 nights as part of a business trip. Her employer reimburses the following personal expenses.
| Night | Amount reimbursed |
|---|---|
| Night 1 | £5.50 |
| Night 2 | £6 |
| Night 3 | £2.50 |
| Total | £14 |
The reimbursement by the employer can be made tax-free under the incidental overnight expenses legislation. Although she was reimbursed more than £5 for each of the first 2 nights, the total reimbursement did not exceed £15 for the 3 nights, see EIM02730.