Expenses paid in wages

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    We have a customer who receives a set amount in his wage which is intended to pay for food etc whilst he is away working – he is a coach driver. If he does not actually incur any expenses eg takes a packed lunch!, do we include this in his gross pay?
    If he does incur costs, do we have to deduct it from the gross?

    Kevin D

    HBR 35(2)(b) uses the work “incurred”. On that basis, if expenses are not [u:48fc41be16]actually[/u:48fc41be16] incurred, monies paid counts as earnings and should not be disregarded.

    In my view, money spent to purchase the ingredients for a packed lunch is also not allowable as an expense. Any number of people take lunch in that way – approx 3,000,000 per day with about the same number again purchasing pre-packed sandwiches from supermarkets etc.

    In the circumstances described, I can’t see how a self-made packed lunch is an expense incurred in the performance of the duties of the employment.

    However, it becomes a bit blurry if he is away overnight (due to his work) and having to pay for evening food. That may well be allowable.


    He would have to eat regardless of whether he was at work or sat at home in front of the TV! 😆

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