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Posted Tue, 14 Nov 2023 15:14:53 GMT by Donna Lawrence
Under EIM05275, an employee working abroad and living in vacant residential property or a serviced flat can be paid 80% per day of the appropriate total residual rate for the first 7 days, and 50% for the eighth and subsequent days. My question is - is there any time limit to how long this can be paid beyond the eighth day? Can the payment be made indefinitely at 50% per day? Thanks!
Posted Mon, 20 Nov 2023 13:36:36 GMT by HMRC Admin 8 Response
Hi,
If an employee stays in vacant residential property, or a serviced flat with cooking and/or laundry facilities, all paid for by the employer or a third party, the employer may reimburse:
for the first 7 days of any stay, 80% per day of the appropriate total residual rate
for the eighth and subsequent days, 50% per day of the appropriate total residual rate there is no mention of a maximun ammount of days. 
Thank you.
Posted Mon, 20 Nov 2023 13:51:47 GMT by Donna Lawrence
Admin 8, Thanks very much.
Posted Tue, 23 Jan 2024 10:01:51 GMT by Donna Lawrence
A further question please. What overseas scale rates is an employee entitled to when they rent a room from a private individual (colleague) and have to pay for their own meals? Or when they rent the room and get meals provided? This doesn't appear to be covered by either EIM05265 or EIM05275. Thank you.
Posted Thu, 25 Jan 2024 16:12:20 GMT by HMRC Admin 25 Response
Hi Donna Lawrence,
Generally the other colleague would have to report this to their tax authority as if they were a business, this way you would receive a receipt/invoice for the costs.
If this doesnt happen then this most likely would not be covered within a scale rate.
Thank you. 

 
Posted Mon, 29 Jan 2024 13:46:49 GMT by Donna Lawrence
Hi Admin 25. Thanks for your response. So if our employee working abroad is invoiced for their room rental, and the company reimburses the employee (or pays the landlord direct), is it ok if we then pay the employee scale rates according to EIM05275 at 80% then 50% of the total residual rate? This seems to fit the spirit of the law if not the letter of the law. EIM05275 stipulates a vacant residential property or a serviced flat and the employee would be in a rented room rather than one of these. But otherwise as far as I can see the arrangement is the same, so EIM05275 should apply. Please can you confirm? Thanks.
Posted Fri, 02 Feb 2024 16:12:59 GMT by HMRC Admin 25 Response
Hi Donna Lawrence
If you are reimbursing an employee then you would not be paying the empoloyee any scale rate. 
Thank you. 
Posted Mon, 05 Feb 2024 10:17:39 GMT by Donna Lawrence
Hi Admin 25. Sorry - I obviously didn't make myself clear. We will reimburse the employee for their room rental cost - rental only, not covering food. We are proposing paying scale rates for meals according to EIM05275. Is this ok? Thanks
Posted Wed, 07 Feb 2024 12:47:52 GMT by HMRC Admin 25 Response
Hi 
With regards to this, we would suggest this guidance here:
Expenses rates for employees travelling outside the UK
Thank you. 

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