Night deal with Inland Revenue
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• Employed drivers can claim up to £21.15 untaxed subsistence allowance per night following a Road Haulage Association-brokered deal with the Inland Revenue.
Drivers in sleeper cabs will still only be able to claim 75% of the allowance, which raises their tax-free element to £15.86.
But the 3.2% rise will not apply to self-employed drivers, whose annual overnight allowance is limited effectively to what their accountant can negotiate for them following tax changes introduced last year.
Where haulage companies have agreed higher tax-free allowances with their local tax office, the rate has been increased by 3.2%—the rate of inflation in December 1995. All the changes are backdated to 1 January 1996.