Linking subsistence allowances to mileage capture system saves £500,000 a year at Willmott Dixon.
Linking subsistence allowances to mileage capture system saves £500,000 a year at Willmott Dixon.
2 PagesThe arrangement optimises the tax advantages of using HMRC’s fixed rate subsistence allowances for the cost of meals incurred when on company business. Willmott Dixon passes on the full effect of the income tax and National Insurance (NI) savings to the employees. The company benefits from lower employer’s NI. The company developed the scheme in-house with support from TMC. Graham Dundas, Deputy Chief Financial Officer at Willmott Dixon, explained: “We saw the advantage of allowing our staff to receive the £5 or £10 benchmark subsistence allowances through a salary sacrifice arrangement. We wanted to obtain HMRC approval for the arrangement and realised that we would need a very robust control mechanism for identifying when people were on qualifying company business. “Since
