HMRC ruling over drivers’ allowance is wrong, says RHA 29 February 2016

A key tax allowance for HGV drivers is causing problems as a result of an error at HMRC (HM Revenue & Customs), according to the RHA (Road Haulage Association).

Jack Semple, RHA director of policy, says the association has an historical agreement over the payment of a round sum allowance to drivers who use sleeper cabs while on business journeys.

The agreement requires the employer to be satisfied that the driver is away from his normal base and hence sleeping in his cab.

HMRC has been telling hauliers that, in addition to the above, they need to get proof of purchases from drivers if they are going to pay an overnight subsistence allowance up to the rate agreed with the RHA.

“This is quite wrong,” says Semple.

“There is no change to the system. Drivers have to be genuinely away in their cabs overnight – in a genuine subsistence position – but nothing further is required.”

“HMRC inspectors have, in some cases, been imposing new demands on hauliers. And the website has been incorrect. It should have been put right immediately and we have made that point to HMRC.”

“I fear that many hauliers, from the smallest to the very large, may have been told there are changes when there are none... [And] that a more complicated system is being imposed, when that is not the case,” insists Semple.

Author
Brian Tinham

Related Companies
Road Haulage Association Ltd

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