Broadly, reasonable travel and subsistence allowances paid to employees are excluded from ‘earnings’ attracting NICs.

Site-based employees

Reasonable costs paid by employers towards the costs of travel and/or subsistence of employees with no permanent workplace, may be excluded from gross pay.

Triangular travel

Where an employee with a normal, permanent place of work travels directly from his home to another temporary place of work, reasonable travel and subsistence expenses paid by the employer can be excluded in calculating gross pay for NIC purposes. Previously, the amount normally excluded from gross pay was the smaller of:

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