Per diem allowances for business travel
Now you know all there is to know about per diem allowances; it’s time to share that knowledge with your employees. A corporate travel policy that includes information on per diem payments is key to keeping your employees in the loop and in line with travel budgets.Keeping all your travel information in one place takes the hassle out of business travel and lets your employees know they’re covered when travelling for business. It’s a one-stop shop for all your employees’ business travel questions, from allowances to per diem reimbursement.First, let’s quickly recap the key aspects of per diem allowances.Per diem allowances for travelling employees: a recap
Per diem payments are daily allowances given to travelling employees to cover costs associated with business travel and trips. The allowances and methods of determining per diem allowances vary by country and are influenced by the local cost of living.In the UK, rates are decided by HMRC. They cover meal expenses and incidental expenses (M&IE). Lodging expenses for overnight stays must be arranged with HMRC via a bespoke rate application. In order to do this, businesses must provide previous business expenditure proof.The main benefits of per diem allowances are that they aren't taxable income and offer flexibility to the employees in how they spend travel allowances. Per diem payments are also less hassle than reimbursing actual business travel expenses, as the latter requires expense reports and receipts for proof of per diem expenses.The potential downside to per diem payments is that they can push employees to cut corners to pocket any excess of their daily rates. The same trust offered as a benefit can ultimately be abused.Find out your per diem allowance for your upcoming trip
Our per diem calculator works out the exact, fixed amount you’re entitled to spend when you travel for work.What to include in your company per diem policy
Corporate travel policies are useful for business travellers as they’re an easy way to check their allowances while on a business trip. A policy should provide all the key information so travellers can follow corporate guidelines and simplify employee expense management.A well-put-together corporate travel policy includes information on the company’s per diem policy for employees. It should provide your team with details on:- Reimbursable business expenses
- Non-reimbursable expenses
- Reimbursement method (if not using a corporate credit card)
- International travel policy
Check out our full guide on creating a sample travel policy for employees.What to add to your corporate travel risk management policy
Here are some key categories to consider when putting a travel risk management policy together:2. Roles and responsibilities
This section outlines the key points of contact when it comes to travel risk management. It should inform all parties of their roles within the process and remind everyone of their responsibilities while away on travel.3. Travel status and approval
This section details the proposed travel to obtain approval before travel. This should list potential risks faced by the travelling employee and how to minimise those risks beforehand.These include location-based risks, such as the standard risk associated with travelling somewhere, and individual-based risks.Key takeaways: Managing per diem allowances for effective business travel
That’s a wrap on per diem payments for travelling employees—from domestic to international business trips. Per diem is a great way to monitor business travel expenditures and ensure that all travel expenses are tax-deductible.Per diem allowances are a key part of any corporate travel policy, whether they’re benchmark rates or bespoke rates. Keep employees informed of what they can and can’t afford while away on business. For help creating a comprehensive corporate travel policy, head to our full guide here, and don’t hesitate to get in touch with the TravelPerk team for any other business travel needs.?)
?)
?)
?){kind=icon}
?){kind=icon}