£8.75 is tax free
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THE INLAND REVENUE has agreed that subsistence of up to £8.75 will be free from income tax.
Following talks with the Road Haulage Association and trade unions, it has been agreed also that drivers should not produce receipts to substantiate the expense up to £8.75.
Above that, the law requires drivers to produce receipts which show that anything over £8.75 has been spent, but special arrangements may be made where a higher level has been paid traditionally.
The Transport and General Workers Union's Jack Ashwell says he does not anticipate any serious difficulties where a higher rate is paid.
And he added: "This is a big step forward. Some tax inspectors were applying different rules in different localities and now we hope we have achieved a measure of order in the situation."