What is a Subsistence Tax Rebate?

Subsistence is the term given by HMRC to food and refreshments bought when working at a temporary workplace.

It’s common to have both travel and subsistence costs at the same time. When you travel to a temporary work location, you often need to buy your own meals and drinks while you’re there.

You can claim a tax rebate for your subsistence costs at the same time or separately to a mileage or accommodation tax rebate claim.

To be allowable you must be attending a place of work that HMRC deems ‘temporary’. Travel and subsistence tax relief is not available to taxpayers who work at a fixed place of employment.

Our guide to claiming subistence tax relief focuses on eligibilty criteria, the evidence you need and how to make your claim directly with HMRC.

What is a temporary workplace for subsistence?

To be eligible for a subsistence tax rebate you must be able to show HMRC that you were working at a temporary workplace.

The same temporary workplace rules apply to a mileage, travel and accommodation tax rebate claim.

In general terms a temporary workplace for HMRC purposes is classed as a place of work that you attend or expect to attend for 24 months or less.

• You are entitled to claim for any food and refreshments bought from the beginning to the end of your temporary workplace journey. If you work away from home this includes all the meals and snacks you buy whilst living away.
• You are not allowed to claim for food and refreshments bought before your journey began. For example if you prepared food at home the day before your journey began this would not be permissible.

What do I need to make a subsistence tax rebate claim?

HMRC will require some evidence to prove your temporary workplace status and how much you spent.

We have made a short list below of what is usually needed so you can gather what you need before you claim.

Subsistence tax rebate claim records:

• Contract of employment or statement from your employer confirming that you have a temporary workplace status.
• A record confirming the temporary workplace address with the dates you worked there.
• Receipts or other digital record showing your subsistence purchases.

Can I claim a subsistence tax rebate if my employer reimburses me?

Some employers reimburse the full cost of subsistence tax free which means you don’t need to make a tax rebate claim.

If you are not reimbursed for your subsistence costs or you are reimbursed and the money is taxed along with your salary a claim should still be allowable.

For a claim where you have been reimbursed and the reimbursement has been taxed HMRC will normally need to see your payslips to confirm how you have been paid by your employer.

Can I claim a tax rebate for accommodation costs?

Accommodation costs can be claimed for in the same way as subsistence with the same temporary workplace rulings applying.

HMRC will typically need to see the same type of evidence as a subsistence claim so keep all of your records and receipts along with payslips if you are reimbursed a taxed accommodation allowance by your employer.

How to claim a subsistence tax rebate from HMRC

HMRC offers both offline and online options to claim tax relief for subsistence and other employee expenses, depending on your circumstances.

Using HMRC’s online iForm

This digital service allows you to submit claims and supporting evidence electronically, eliminating postal delays and form-filling hassles.

To use the online service:

• Sign in using your Government Gateway ID and password.
• Answer eligibility questions before accessing the form.
• Upload evidence of expenses directly.
• Receive a reference number to track your claim progress.

Filling out and posting form P87

Alternatively, you can submit claims via post using form P87, which HMRC requires as their standard postal claim form. When completing this form:

• Download it from GOV.UK and complete it on-screen or print and fill by hand.
• Include all mandatory information to prevent rejection, including employer PAYE reference.
• Attach relevant evidence (receipts, logs, etc.).
• Sign and date the form – unsigned forms are typically rejected.

Send your completed form with supporting evidence to the postal address on the form.

When to use self assessment instead

For larger expense claims exceeding £2,500 in a single tax year, you must use Self Assessment rather than the P87 form. Through Self Assessment:

• Claim in the “Employment income” section
• No need to provide evidence when filing, though keep records in case HMRC requests them
• Include all necessary information as with P87 claims

Subsistence tax relief FAQs

What types of expenses can I claim as an employee? As an employee, you can claim tax relief on expenses that are “wholly, exclusively and necessarily” for work. This includes costs for uniforms and work clothing, business mileage and travel, professional fees and subscriptions, working from home expenses, and certain tools required for your job.

How much tax relief will I receive on my subsistence expenses? The amount of tax relief you receive depends on your tax rate. Basic rate taxpayers (20%) will get 20% of the expense back, while higher rate taxpayers (40%) will receive 40%. For example, if you claim £100 in expenses as a basic rate taxpayer, you’ll get £20 back in tax relief.

Do I need receipts for all my expense claims? For most expense claims, you’ll need to provide receipts or other evidence of payment. However, some expenses like the £60 annual uniform allowance are flat-rate claims that don’t require receipts. Always keep detailed records, including receipts, mileage logs, and proof of necessity for your job.

How far back can I claim subsistence expenses? You can claim tax relief on work expenses for up to four years from the end of the relevant tax year. This means you have the opportunity to recoup historical expenses you might have overlooked, potentially recovering a significant amount in tax relief.