8.0
A daily subsistence allowance is to be paid to staff going racing Monday through to Saturday. There is a tax free element to these allowances as set out below. The allowances may be paid in cash in advance to enable staff to buy refreshments but tax must be paid on the non-tax free element. The rate of daily subsistence allowance is based on the number of hours away from the yard outside of normal working hours.
Where a payment is tax free, it is also NI free.
Hours away from yard outside normal working hours
Up to 8 hours
8+ hours
Daily Subsistence Allowance
£10
£13.50
Tax free element
£10*
£13.50*
* By an agreement with the HMRC the full amount of these payments (£10 and £13.50) can now be paid tax free provided the employer complies with revised HMRC requirements in place since 6th April 2016. To meet these requirements the employer must apply to HMRC to use the racing industry bespoke payments and have a checking system to check around 10% of expense claims to ensure they are being properly incurred, namely that the employee has gone racing and incurred expenses.