Question to the Department for Transport:

To ask His Majesty's Government what is the tax-free overnight allowance for HGV drivers and when was it last uprated in line with inflation.

The agreed industry scale rate for lorry drivers’ overnight subsistence allowance is currently £34.90, or 75% of this figure (£26.20) where the driver uses a sleeper cab. These are the maximum amounts that can be paid free of Income Tax and National Insurance Contributions under the agreed industry scale rate.

There is no commitment to uplifting agreed industry scale rates in line with inflation. In order to seek an increase in the rate, haulage operators would need to provide evidence to His Majesty’s Revenue and Customs (HMRC) that drivers are incurring expenses that exceed the current benchmark rate.

Alternatively, employers can reimburse drivers for their actual travel costs incurred when staying away from home rather than pay the set benchmark scale rate.