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HMRC announce Benchmark Scale Rates for Travel and Subsistence

HMRC announce Benchmark Scale Rates for Travel and Subsistence
 
HM Revenue & Customs (HMRC) has now issued the benchmark scale rates for subsistence which come into effect from 6th April 2009, which will make the process of offering Travel and Subsistence to your workforce smoother.
The new benchmark scale rates for subsistence means that any employers can apply for a dispensation without the need to carry out a sampling exercise.
 
HMRC recognises that a sampling exercise can be burdensome and expensive for employers. It has therefore introduced an advisory system of benchmark scale rates for day subsistence payments that an employer can use without having to carry out a sampling exercise.
 
The benchmark scale rates are as follows:
One meal rate (Five hour rate) - A rate of up to 5.00 may be paid where the worker has been away from his home/normal place of work for a period of at least five hours and has incurred a cost on a meal.
Two meal rate (Ten hour rate) - A rate of up to 10.00 may be paid where the worker has been away from his home/normal place of work for a period of at least ten hours and has incurred a cost on a meal or meals.
There are also two others rates, an early starter and late finisher rate, but only for use in exceptional circumstances.
For travel expenses, HMRC advise you to use the already available AMAP rates, and any rates public transport rate will need to be applied for.
 
Full detail of the of the benchmark scale rates can be found on the HMRC website http://www.hmrc.gov.uk/briefs/income-tax/brief2409.htm
 
David Smith of Zeel Solutions, market leaders in Travel and Subsistence software solutions commented, This will make the whole dispensation process a lot smoother for the recruitment industry, allowing agencies that can provide evidence that the criteria for Travel and Subsistence fits their business model, can start to offer the benefits to their workforce in a shorter timeframe, and start reaping the rewards
 
At Zeel we work alongside some of the leading auditing firms, all with experience at getting dispensations in the recruitment industry and have negotiated packages to reflect the new scale rates process

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