Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to review worldwide subsistence rates set by HMRC used by British overseas workers to cover living costs in line with local inflation rates.

The Overseas Scale Rates guidance was last updated in February 2019 and applied from 6 April 2019.

The published rates are designed to reflect the average cost of subsistence, including local taxes and gratuities, when staying overseas. It is possible these rates will increase and fall as they do not consider fluctuations in currency exchange rates. Employers can use the rates to pay or reimburse employees’ allowable travel expenses free of tax and National Insurance contributions without checking an employee’s receipts. Employers can also reimburse employee’s actual expenses, but they must check the employee’s receipts.

In addition, if an employee spends more than the amount their employer pays, they can claim tax relief on the difference. Therefore, it is not necessary to review the rates at this time.