HM Revenue & Customs (HMRC) has introduced new benchmark scale rates for subsistence which come into force from today.

The new rates for subsistence mean that any employer can apply for a dispensation removing the need to carry out a sampling exercise.

The benchmark scale rates are as follows: One meal rate (Five hour rate) - A rate of up to £5 may be paid where the worker has been away from his home/normal place of work for a period of at least five hours and has incurred a cost on a meal.

Two meal rate (Ten hour rate) - A rate of up to £10 may be paid where the worker has been away from his home/normal place of work for a period of at least ten hours and has incurred a cost on a meal or meals.

There are also two others rates, an early starter and late finisher rate, but these are restriced to exceptional circumstances.

For travel expenses, HMRC advise employers to use the already available AMAP rates, and any rates public transport rate will need to be applied for.

David Smith, director at travel and subsistence solutions provider Zeel Solutions, says: “This will make the whole dispensation process a lot smoother for the recruitment industry, allowing agencies that can provide evidence that the criteria for travel and subsistence fits their business model, can start to offer the benefits to their workforce in a shorter timeframe, and start reaping the rewards.”

For more information on the rates, go to: http://www.hmrc.gov.uk/briefs/income-tax/brief2409.htm