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Where Taxpayers and Advisers Meet

Tax on per diems (while travelling for work)

Posts: 1
Joined: Sun Mar 19, 2017 8:35 pm

Tax on per diems (while travelling for work)

Postby piscean_male » Sun Mar 19, 2017 8:44 pm


I'm in full time employment in London with a consulting company and it seems like I might have to travel for work, to US, for short/medium term in the near future. I wanted some advice what kind of 'financial incentive' I should ask for (to minimize taxes).

Officially, for UK based employees, our organisation has a policy of reimbursing daily living expenditure (b'fast, lunch, dinner and hotel room rent). But I'm hearing from some well placed colleagues that I could negotiate a financial incentive.

By that what I understood was some kind of a per diem (for e.g. sake USD 50 per day) - now my question is - what does that do to my tax situation? How would I be taxed?

I'm in a 100k+ salary bracket and have no other source of income.

Thanks a lot in advance, I hope my question is clear.

Kind regards

Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Tax on per diems (while travelling for work)

Postby AmanSood » Wed Mar 22, 2017 11:29 am


I think you need to look at the arrangement more broadly and whether there will potentially be US taxes due on your UK income and if so what your net tax position would be. That's the starting point and then it's a case of determining what kinds of benefits the Company can provide you with which wouldn't be taxable in the UK (per diems, accommodation, flights home etc). Worth asking the Company if they have an assignment policy which would normally set out the benefits you would receive and the tax implications.

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