Outputs and Overnight Expenses


Part of the terminology relating to VAT.  Outputs are your sales and inputs are your purchases.

When you complete your VAT return your sales will be included in box 6 (excluding VAT) the VAT on your sales will be included in box 1.

If you are registered under the Flat Rate scheme (see letter F) you will include the VAT payable at your flat rate percentage in box 1.  The sales including the VAT will be included in box 6.

Overnight expenses

Also known as Incidental Overnight Expenses.

The maximum overnight expense is £5 for each night away in the UK and £10 for each night away outside the UK.

For example an employee stays away from home overnight elsewhere in the UK for 4 nights.  The employer arranges his accommodation and pays his hotel bill – including £12 for laundry services.  The employer also gives him a cash allowance of £3 per night to cover other incidental expenses.

The employee has received the value of £24 which consists of:

  • the benefit of £12 for laundry services; and
  • cash amounting to £12.

The average received per night away is £6.  As this exceeds the £5 limit the exemption will not apply and NICs will be due on the full benefit-in-kind of £24.