Overnight Subsistence – Lorry Drivers

Lorry Driver Subsistence Allowances

One of our HGV Insurance advisors here at Isis Insurance was last week chatting to a client about overnight subsistence allowances for HGV drivers. Many HGV drivers sleep away from home during the course of their work, either in a hotel or in their sleeper cab (if they have one.) 

Looking up the Government’s advised rate, below are the headline figures derived from https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim66205

The figures below were formulated in 2014, and our first thought is that they are most probably pretty low given inflation and the cost of living crisis in the ten years since!

The maximum amount that can be paid free of income tax and NICS is £34.90 per night, or 75% of this figure £26.20 if the driver has a sleeper cab.

Haulage companies need to have a checking system in place to undergo periodic checks to ensure drivers are indeed incurring expenses while travelling. Expenses are considered to be a reasonable mix of food and drinks.

If a company wants to pay more that the agreed amount, they will need to apply for an individual bespoke scale rate.