What is travel & subsistence (T&S) planning?

T&S planning is a method of replacing taxable pay with tax/NIC free scale rate payments. These scale rate payments can then be integrated into the employees pay package. The advantage of this is that gross pay can be reduced, although the total reward to employee remains the same, whilst increasing net pay. This is achieved by generating savings of PAYE and Class 1 NIC (both employer's and employee's) which can be split between both parties or retained in full by the employer.

Who can benefit?

T&S planning can be effective where any organisation has employees incurring regular business related travel and subsistence expenses. Typically, these would fall into the following categories:

• Site based workers e.g. employees working at client sites;
• Area based employees e.g. engineers and/or sales staff; and
• Directors or other employees spending considerable time
  "out of the office".

For further information please contact the Cobia team on 0845 226 0580 or email info@cobia-uk.com