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overnight allowances / subsistence

 
#1 overnight allowances / subsistence
22/04/2010 17:16

Pippa

I'm being told that overnight allowances, for being away from home have been stopped in the recession.

Is this just a ruse to get us to agree to losing the cash and does anyone still get them

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#2 RE: overnight allowances / subsistence
22/04/2010 17:56

Derek to Pippa (#1)

Pippa - what company has told you this?

I belong to a large outsourcer with a ridiculous expenses policy but we are still being paid.

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#3 RE: overnight allowances / subsistence
23/04/2010 23:01

Tom to Derek (#2)

I'm of graduate level and still get the same deal as everyone at my firm has had for years - £25 per night (receipts required) away from home. Hotels should be under £150/night in London and £120 outside.

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#4 RE: overnight allowances / subsistence
24/04/2010 21:13

anon to Pippa (#1)

Never had allowances - nowadays most firms do receipted expenses (with cap)

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#5 RE: overnight allowances / subsistence
13/05/2010 16:08

Pippa to anon (#4)

Thanks for the response. A friend of mine at wymans gets a salary uplift for every night away, which would be great. Does anyone else get this?

thanks

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#6 RE: overnight allowances / subsistence
14/05/2010 17:17

Tony Restell (Top-Consultant.com) to Pippa (#5)

Pippa - to my knowledge in the UK market an overnight allowance / salary uplift has always been the exception rather than the norm; the norm being to have expenses paid in full up to certain pre-agreed limits.

This is primarily a tax issue. When I worked with Roland Berger the UK consultants and the Germanic consultants had totally different expenses policies. Those in the UK office could reclaim all expenses up to certain pre-agreed limits and these were paid in full without any tax. Had we been paid fixed amounts for being away from home then this would have been treated as income and taxed accordingly. Our German colleagues by contrast could not reclaim expenses, but for every day they were away they received a per diem allowance on which in practice they could make a decent profit if they chose to live frugally...

Expenses are charged on to clients, so the only thing I could imagine may possibly have changed is that consulting staff are being asked to live within more frugal pre-agreed expenses limits, but I've not heard of any examples of this...

Tony Restell

Top-Consultant.com

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