Five- and Ten-Hour Rule for Subsistence?

What Are the Five- and Ten-Hour Rule for Subsistence?

Meal allowances are designed to meet the extra cost incurred by someone who is travelling to work away from their normal home-office or place of work; where the distance is more than five miles away from their normal place of work. Please note that the worker must be on their way to carry out their official duties, that is duties wholly and exclusively for the purposes of the trade.

The rate of allowance is determined by the length of absence from the time when the worker leaves to begin the journey from his or her home-office to the time when s/he returns from that assignment. Subsistence under the five- and ten-hour rule should be supported by receipted records. Alcohol may not be claimed as part of the expenses system.

The five-hour rule (one meal) For the five-hour rule to apply the contractor/freelancer must:

• Be carrying out duties away from his or her normal workplace
• Be more than five miles away from his or her normal workplace
• Having undertaken a qualifying journey to carry out work of more than five hours and up to ten hours, from the time the journey begins to the time of return
• Have incurred the cost of one meal and have a receipt for the expenditure.

The ten-hour rule (two meals) For the ten-hour rule to apply the contractor/freelancer must:

• Be carrying out duties away from his or her normal workplace for ten hours
• Be more than five miles away from his or her normal workplace
• Having undertaken a qualifying journey to carry out work of ten hours, from the time the journey begins to the time of return
• Have incurred the cost of two meals and have receipts for the expenditure.

This rule applies within any normal working day or 24-hour period.

Neither the five- or ten-hour rule applies if:

• The worker takes their meals at home / in the home-office,
• The place visited is less than five miles away, by the most direct route, from his or her normal place of work.
• The journey is not wholly and exclusively for the purposes of the trade.

About the author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.