Income Tax (Earnings and Pensions) Act 2003 section 268

Exemption of vouchers and tokens for incidental overnight expenses

Section 268 exempts non-cash vouchers and credit-tokens from income tax when they are used by employees to cover minor personal expenses during overnight work trips away from home.

• Non-cash vouchers and credit-tokens used for incidental expenses during qualifying overnight stays are exempt from income tax
• The goods, services or money obtained must be incidental to the employee's absence from their normal home, during a continuous period involving an overnight stay
• The cost of the goods or services must not be of a type that would otherwise qualify as a tax-deductible expense
• The total value claimed under the exemption for the qualifying period must not exceed the permitted amount (£5 per night for UK stays, £10 per night for overseas stays)