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Posted Wed, 01 Feb 2023 18:36:56 GMT by doris1
I've been offered a temporary contract that would require me to work in Italy for a total of 4 months this year. The money provided is 3000 Euro/month, out of which I would need to cover my travel and accomodation and other living expenses. Clause 7.4 of Document 490 "what qualifies for tax relief" seems relevant here and states: for the cost of accommodation and subsistence but only to the extent that this cost is included in the employee’s earnings, for example, where the cost is borne or reimbursed by, or on behalf of, their employer However, I'm unclear as to the meaning of "where the cost is borne or reimbursed by, or on behalf of, their employer" Does this mean that because my salary is required to cover these expenses then the employer bears the cost and so I can claim the expense? thanks
Posted Thu, 09 Feb 2023 08:12:40 GMT by HMRC Admin 20
Hi doris1,

The example at 7.4 explains this quite well.
The cost of accommodation and subsistence would only be due relief to the amount this is re-imbursed or paid by the employer.
This is because by re-imbursing the employee, the employer is creating a taxable benefit.
The relief under the special allowances would be set against the taxable benefit but we would not give relief for any amount not re-imbursed.
I hope this makes sense.

Thank you.

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