Travel and Subsistence (Salary Sacrifice)

HM Revenue and Customs can grant dispensation to employers of temporary and overarching contracted employees. This dispensation reduces the requirements to complete travel and subsistence expense details against forms P11D and P9D. Additionally it allows payment of fixed subsistence amounts depending on how long the employee works and when they work.

When employees usually go to work they go to a fixed location such as their head office, and they would not normally be able to claim for travel or subsistence. Temporary workforces such as Security Guards, Cleaners and Temporary Agency staff travel to temporary (3rd Party) work places on short term contracts and can with dispensation from HM Revenue and Customs, be paid both their travel expenses and a subsistence value to cover meals.

The dispensation allows the employee to sacrifice some of their pre-tax/NI pay in return of a post tax/NI benefit.

Organisations that have obtained dispensation and run this scheme will pay much less Employer NI, but can also share in the savings/benefit given to the employee. These two combined can give rise to major cost saving benefits to employers.

eZworkforce™ will manage every aspect of compliance and eligibility, calculating routes and travel and all with a full audit trail which offers a great deal of flexibility combined with full control over the way you choose to run the T&S scheme.

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