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Overnight allowances

Posted: Tue Nov 27, 2018 7:15 pm
by Gouldy
Hi all,

I’m a HGV lorry driver and I have just been offered 2 nights out a week commencing in January.
My firm pays £40 a night out overnight allowance. £25 of this tax free. It’s to cover meals etc whilst on the road. My company decide the beat way to pay this is in with my wages on a separate line on my payslip.
Do you think this will count as overtime or at least some of it might? If I have to do the overtime rule 10% 50/50 that is fine by me but as this could be a permanent thing how do I stand on that?

If I have to pay additional into IVA I dont mind as im in the unique position where my total debt was 11,900 and my payments were agreed at £125pm. However a month into the Iva my payments went up to £325 due to a permanent pay rise. This meaning including about £5000 in fees my Iva could possibly be paid up a year or so early.

Has anyone had a similar situation

Thanks for any help

Re: Overnight allowances

Posted: Tue Nov 27, 2018 7:44 pm
by Foggy
I would argue that the tax free portion is actually reimbursement of extra expenses incurred, so should not be counted and any extra payment (if at all) should be based on the remaining £15 (which is taxable as it is considered income by HMRC).

Re: Overnight allowances

Posted: Tue Nov 27, 2018 7:50 pm
by Gouldy
Thanks foggy. That is what I thought it would be. Otherwise the nights away from the family are far less appealing. I will bring this up with my IP closer to the time as my annual review is due in February so I do t want wires to be crossed before then.
Thanks again