Tax return // allowable expenses

[FuzzyLogic]

Hopefully a quick question please. I'm flight crew with an airline. Until recently we were permitted a decent amount of daily 'per diems' NIC/tax free to cover meals in the evenings. Recently this amount was adjusted down significantly (mainly because a large percentage of surveyed crew could not produce receipts to evidence expenditure). The new amount does not cover what I actually spend most evenings when I am away. I keep all of my receipts. Am I permitted to claim the difference between actual expenditure and the new low allowance for all my meals? To give you an idea for the last 12 months - this would currently be a claim of around £1600 on my tax return.

[Eric Mc]

Was the expenditure incurred "wholly, exclusively and necessarily" as part of your engagement with your employer.

If it is, you can offset the difference you are being paid by the airline to cover these costs and the actual costs for offset against your taxable income.

Note that you only get tax relief, not an actual reimbursement of the cost.

For example, if your actual costs are £1,600 and the employer reimburses you £1,000, you can claim tax relief on the £600 difference. If you are a basic rate taxpayer, that will save you £120 tax. If you are a higher rate taxpayer, the tax saving is £240.

[FuzzyLogic]

Hi Eric, thank you for the reply. I can answer yes to your first question so that is helpful, thank you. The £1600 I mentioned is the difference between my actual expenses and the allowance, so as a higher rate tax payer, that should be worth £640 tax relief to me.