# 'Per diem' day rate to cover expences in UK



## Paul

I am taking up a new position with my company which involves 3/4 days per week in the UK.

My company are proposing to offer me a "per diem" day rate concept to cover my daily accomadation,lunch and evening meal.

Can you confirm the current per diem rates ?

Are there any income tax implications ?

Would you recommend this per diem concept ?


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## Novice

*Re: Per diem*

My employers offer £45 STG as a UK per Diem.  Apparently this is the max before there are tax implications.  This is quite a good per diem I know of other companies who offer less.  It's a good system and you can make a fair bit of extra if you are disciplined when you are away - however, it is very easy to blow the lot when you are feeling a bit lonely from all that hotel room living. I spent quite a bit in htels bars over the years.


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## stuart

*Re: Per diem*

In what way lonely?

£45 wouldn't go far would it


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## Gordanus

*Re: Per diem*

>My company are proposing to offer me a "per diem" day rate concept to cover my daily accomadation,lunch and evening meal<

Well, I travel frequently and stay in B&Bs in the UK- most B&Bs with en-suite cost £45/48/50.   I'm self-employed so tend to be a bit stingy, but these were the best rates I could get, and this was in the Midlands, not even a large city.  You'd find yourself in a minus situation very fast on that!


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## legend99

I think Per Diems do not generally include accomadation cost, that is seperate. per Diem is the cost of lunch and dinner provided you are staying somewhere that includes breakie.
I worked in the UK a few years back. When we were on expenses we ate in the finest of restaurants, having duck etc for starters. The week we switched to per diems people were having a bag of crisps and a half prcied sandwich for dinner! Pocketing the difference!

there is as far as I recall now an upper limit before it is taxable. 

Someone also once claimed that you cannot be on per diems for more than something like 16 weeks before all of the per diem becomes taxable as revenue say you should just relocate but we never got that confirmed by anyone.


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## Novice

Accomadation costs and travel costs are not included in that £45 per diem.  It is only your meals and incidental expenses.


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## Paul

Thanks for your replies

The rate I am being offered is €136 per day (approx Stg£ 92). This is to cover accomadation / breakfast / lunch and evening meal.
Is there a standard rate, or is it at the employers discression what they offer ?
My initial feeling is that Stg£ 92 will not cover all the above and I could find myself in a negative position very quickly unless I stay in very standard accomadation.


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## Novice

Wow that is pretty bad.  A hotel in UK you are talking £100 a night on average.  Don't think there is a max on what they can offer you.  There is a max on what is tax free (I think this is £45 STG).  Normally the cost of hotel and travel is excluded in per diems (and wouldn't have any impact on the employee's tax) so I'm not sure what your situation would be here.  Think that this is a rough deal.  If I were you I'd be pushing for vouched expenses - i.e. that you just show receipts for what was spent and your employer refunds you.


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## Robin

Expenses in my company are a 100 euro a day to the UK.

Robin


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## Robin

Just to mention hotel and taxi charges are separate so the 100 euro is to cover meals for yourself etc..so its pretty good!

rOBIN


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## Paul

*Re: 'Per diem' day rate to cover expenses in UK*

Thanks, seems like I need to renegotiate with my employers.


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## Lemurz

[broken link removed]


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## Robin

Just to mention guys that companies should be basing their daily rates against the standard GDP of the country and a government agency should have a set accound of fixed daily rates for all countries so you should investigate! My company is a foreign multinational so their figures are based on their own governments ratings.

Robin


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## Robin

Woops! Just saw the post above now!


Robin


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