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Irs announces 2023-2024 per diem rates for taxpayers who travel for business.

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Traveling for business.

The IRS has released its annual update of special per diem rates for taxpayers to use in substantiating business expenses while traveling away from home. The new numbers are effective as of October 1, 2023, and are to be used for per diem allowances paid to any employee on or after October 1, 2023, for travel away from home. The new rates include those for the transportation industry, the rate for the incidental expenses, and the rates and list of high-cost localities for purposes of the high-low substantiation method.

The IRS allows the use of per diem (that’s Latin meaning "for each day” - remember, lawyers love Latin) rates to make reimbursements easier for employers and employees. Per diem rates are a fixed amount paid to employees to compensate for lodging, meals, and incidental expenses incurred when traveling on business rather than calculating the actual expenses.

A per diem rate can be used by an employer to reimburse employees for combined lodging and meal costs, or meal costs alone. Per diem payments are not considered part of the employee’s wages for tax purposes so long as the payments are equal to, or less than the federal per diem rate, and the employee provides an expense report with a reasonable amount of time. The report must include the business purpose of the trip, the date and place of the trip, and receipts for lodging (if using the meals-only per diem rate). If the employee doesn't provide an expense report meeting all of that criteria, the payments will be taxable to the employee.

It’s important to note that employees don’t have to stick to the per diem rate. They can pay more or less than the federal per diem rate. However, if an employer pays more than the federal per diem rate, the excess will be taxable to the employee.

Self-Employed Taxpayers

What about self-employed taxpayers? The good news is that while employees may not deduct business-related expenses on a Schedule A as part of the Tax Cuts and Jobs Act (TCJA), self-employed taxpayers can still deduct business-related expenses on a Schedule C. That doesn’t mean that self-employed taxpayers can’t receive a per diem rate reimbursement—they can. But the per diem rates aren't typically as useful for self-employed taxpayers because they can only use the per diem rates for meal costs.

Best Tax Software Of 2022

Best tax software for the self-employed of 2022, income tax calculator: estimate your taxes, m&ie rates for the transportation industry.

As of October 1, 2023, the special meals and incidental expenses (M&IE) per diem rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CONUS) and $74 for any locality of travel outside the continental United States (OCONUS). The per diem rate for meals & incidental expenses (M&IE) includes all meals, room service, laundry, dry cleaning, and pressing of clothing, and fees and tips for persons who provide services, such as food servers and luggage handlers.

Incidental Expenses

The rate for incidental expenses only remains $5 per day, no matter the location. Incidental expenses include fees and tips paid at lodging, including porters and hotel staff.

High-Low Substantiation Method

Since the cost of travel can vary depending on where—and when—you're going, there are special rates for certain destinations. For purposes of the high-low substantiation method, the per diem rates are $309 for travel to any high-cost locality and $214 for travel to any other locality within the continental United States. The meals & incidental expenses only per diem for travel to those destinations is $74 for travel to a high-cost locality and $64 for travel to any other locality within the continental United States.

You can find the list of high-cost localities for all or part of the calendar year—including the applicable rates—in the most recent IRS notice .

As you can imagine, high cost of living areas like San Francisco, Boston, and New York City continue to make the list. There are, however, a few noteworthy changes, including:

• The following localities have been added to the list of high-cost localities: Yosemite National Park, California; Tampa/St. Petersburg, Florida; Atlanta, Georgia; Missoula, Montana; Saratoga Springs/Schenectady, New York; Eugene/Florence, Oregon; Montpelier, Vermont.
• The following localities have changed the portion of the year in which they are high-cost localities: San Diego, California; District of Columbia (see also Maryland and Virginia); Fort Lauderdale, Florida; Fort Myers, Florida; Fort Walton Beach/DeFuniak Springs, Florida; Miami, Florida; Vero Beach, Florida; Portland, Maine; Washington, D.C. Metropolitan Area in Maryland (Counties of Montgomery and Prince George’s); Hilton Head, South Carolina; Manchester, Vermont; Washington, D.C. Metropolitan Area in Virginia (Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax); Seattle, Washington.
• The following localities have been removed from the list of high-cost localities: Los Angeles, California; Durango, Colorado; Portland, Oregon; Vancouver, Washington.

You can find the entire high-cost localities list, together with other per diem information, in Notice 2023-68 . To find the federal government per diem rates by locality name or zip code, head over to the General Services Administration (GSA) website.

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Table of Contents

IRS mileage rates for 2023

Irs issues mileage rates for 2024, irs standard mileage rate for business, calculating standard mileage vs. actual expenses for business, other irs mileage rate types, how to claim tax deductions using irs mileage rates, tracking your mileage.

Certain taxpayers can deduct mileage from vehicle use related to business, charity, medical or moving purposes

To take the deduction, taxpayers must meet use requirements and may have to itemize on their returns if claiming certain types of mileage.

For 2023, the IRS' standard mileage rates are $0.655 per mile for business, $0.22 per mile for medical or moving, and $0.14 per mile for charity.

If you drive for your business or plan to rack up some miles while volunteering this year, you might be eligible to deduct some of that mileage on your tax return.

To qualify for this deduction, the miles must have been driven for qualifying business, medical, moving or charity purposes, and you may have to itemize on your return to claim the tax break. Rates are valid for electric, PHEV, gas, and diesel-fueled cars.

For the 2023 tax years (taxes filed in 2024), the IRS standard mileage rates are:

65.5 cents per mile for business.

14 cents per mile for charity.

22 cents per mile for medical and moving purposes.

On Dec. 14, 2023, the agency announced the forthcoming tax year's optional mileage rates. Business rates will increase by 1.5 cents, charity miles will remain the same at 14 cents per mile, and medical and moving miles will decrease by 1 cent.

67 cents per mile for business.

21 cents per mile for medical/moving.

If you’re self-employed or work as a contractor, you might be able to deduct the cost of the use of your car for business purposes. Your tax deduction depends on how you use your vehicle. Commuting to work is generally not deductible mileage, but you may be able to deduct mileage for business-related trips, such as those made to clients, meetings or temporary workplaces [0] Internal Revenue Service . Publication 463: Travel, Gift, and Car Expenses . View all sources .

You can also choose whether to deduct standard mileage using the rates above versus actual expense (e.g., repairs, depreciation, gas, and so forth), but you can't deduct both. Expenses for tolls or parking fees related to business use, however, are separately deductible regardless of which method you use [0] Internal Revenue Service . Topic no. 510, Business Use of Car . Accessed Jan 17, 2024. View all sources .

There are two options for calculating the business deduction for the use of your vehicle.

1. Standard mileage deduction

This is the most straightforward way of calculating your driving expense: simply multiply the number of business miles by the IRS mileage rate. However, you’ll need to keep a record of your business-related mileage.

To use the standard IRS mileage deduction method, you must own or lease the car. But the rules for business mileage deductions can be complex, especially if you use lots of vehicles for business. The IRS website has more details [0] Internal Revenue Service . Topic No. 510, Business Use of Car . Accessed Jul 18, 2023. View all sources .

2. Actual expenses

If you don’t want to track your mileage, you could track and deduct the actual expenses you incur while using your vehicle for business purposes. These expenses may include:

Depreciation.

Lease payments.

Registration fees.

Gas and oil.

» MORE: See what other tax breaks you can take if you’re self-employed

IRS standard mileage rate for volunteering and charitable activities

If you used your car to help a charity or to go somewhere to volunteer, the mileage can be deductible. You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to the use of your car in giving services to a charitable organization. Also, you can't deduct repair and maintenance costs, depreciation, registration fees, tires or insurance [0] Internal Revenue Service . About Publication 526, Charitable Contributions . View all sources .

» MORE: See what else counts as a charitable deduction

IRS standard mileage rate for moving

Only active-duty members of the military can deduct mileage related to moving. The move has to be related to a permanent change of station [0] Internal Revenue Service . Instructions for Form 3903 . View all sources .

IRS standard mileage rate for medical

If you used your car for medical reasons, you may be able to deduct the mileage. "Medical reasons" include:

Driving to the doctor, hospital or other medical facility.

Driving a child or other person who needs medical care to receive medical care.

Driving to see a mentally ill dependent if the visits are recommended as part of treatment.

You can deduct parking fees and tolls as well.

If you don’t want to deduct your mileage, you can deduct your unreimbursed out-of-pocket expenses, such as gas and oil. However, the expenses have to relate directly to the use of your car for medical purposes. Also, you can't deduct repair and maintenance costs, depreciation or insurance.

Mileage isn’t the only transportation cost you might be able to deduct as a medical expense. IRS Publication 502 has the details. Here’s a big caveat: In general, you can deduct qualified, unreimbursed medical expenses that are more than 7.5% of your adjusted gross income .

» MORE: See what else you might be able to deduct as a medical expense

If you're deducting mileage for moving, medical or charity purposes, you'll need to itemize on your tax return in order to claim the tax deduction. Itemizing means you’ll need to set aside extra time when preparing your returns to fill tax forms Form 1040 and Schedule A , as well as supporting schedules that feed into those forms.

If you're self-employed, you’ll claim your mileage deduction as a business expense on Schedule C . If you file your taxes online , the software will ask about your mileage during the interview process and calculate the deduction.

This is important because if you’re audited, you may need to substantiate your deduction by showing a log of the miles you drove.

There are lots of ways to keep track of your mileage. Something as simple as keeping a pen and paper in the glove compartment can suffice, but a quick trip to Google or your phone's app store will reveal a variety of tools that can streamline things.

On a similar note...

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Per diem rates

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• Per Diem Lookup

FY 2024 Per Diem Rates Now Available

Please note! The FY 2024 rates are NOT the default rates until October 1, 2023.

You must follow these instructions to view the FY 2024 rates. Select FY 2024 from the drop-down box above the “Search By City, State, or ZIP Code” or “Search by State" map. Otherwise, the search box only returns current FY 2023 rates.

Rates are set by fiscal year, effective Oct. 1 each year. Find current rates in the continental United States, or CONUS rates, by searching below with city and state or ZIP code, or by clicking on the map, or use the new per diem tool to calculate trip allowances .

Search by city, state, or ZIP code

Required fields are marked with an asterisk ( * ).

Search by state

Have travel policy questions? Use our ' Have a Question? ' site

Have a question about per diem and your taxes? Please contact the Internal Revenue Service at 800-829-1040 or visit www.irs.gov. GSA cannot answer tax-related questions or provide tax advice.

Need a state tax exemption form?

Per OMB Circular A-123, federal travelers "...must provide a tax exemption certificate to lodging vendors, when applicable, to exclude state and local taxes from their hotel bills." GSA's SmartPay team maintains the most current state tax information , including any applicable forms.

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

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Travel and Expense

What is a travel allowance definitions and insights.

A travel allowance can be an effective way to manage employee travel expenses and manage costs for the employee. 

When employees travel for business, there are myriad expenses, from hotels to taxis or ride-sharing services. Using a travel allowance can help give travelers flexibility and control while increasing compliance with tax regulations. 

What Is a Travel Allowance? 

A travel allowance is compensation paid by an employer to employees to cover expenses incurred when traveling for business. In addition to lodging and transportation, travel allowances are typically used for airfare, meals, and other expenses related to business travel. It is business travel compensation, provided either before or after travel is completed. 

Managing business travel compensation can be complex and hard to manage. The way businesses handle travel compensation is changing, as leaders look to implement tools that aid travelers and companies alike. 

Technology is transforming how companies manage all aspects of employee travel , including the creation and coordination of travel allowances. 

Types of Travel Allowance 

There are many types of travel allowances, which can be given upfront or based on a reimbursement schedule. Here is a look at some of the most common. 

Fixed Travel Allowance 

A fixed travel allowance is a flat rate that is offered to an employee, irrespective of the level of expenses incurred. Employees are responsible for managing their travel expenses and determining how to use the money best to accommodate their needs. It is commonly used with employees for short trips or who travel infrequently. 

Typically, with a fixed allowance, if the employee spends less than the allocated amount, the employee can keep the difference. If the employee spends more, they are responsible for making up the difference. Businesses using fixed travel allowance should work with their tax professional to understand the implications of this practice. 

Daily Travel Allowance 

Also called a per diem, a daily travel allowance is an amount used for each day of travel and can be used for lodging, transportation, meals, and other travel expenses. Typically, a traveler will reconcile the per diem by submitting an expense report and receipts. The traveler will be reimbursed for any expenses they spent in excess and will return money that was unspent. 

Travel Reimbursement 

This travel allowance requires the traveler to submit receipts for actual expenses incurred, which are then reimbursed. This process can be cumbersome and time-consuming for the traveler. If reimbursement is not done in a timely manner, it can be burdensome for the employee, who is essentially lending money to the company. Fortunately, there are technologies available today to simplify this work. 

Mileage Allowance 

This type of allowance pays the employee for miles traveled on business. It is typically used when employees use their own car for business-related travel. Technologies can tracking and  reimbursing for mileage simpler and more accurate. 

Methods for Calculating Travel Allowances 

When using travel allowances as part of a corporate travel program, one key consideration is how the travel allowances are calculated. 

The process often has to consider the distance traveled and the time spent traveling. Here is one way to calculate a travel allowance. 

Location and Days of Travel 

Start by determining the location of the traveler at midnight on each day of travel. A day of travel is defined as a 24-hour period an employee is conducting business while traveling. 

The day of travel ends when the next day starts or they return home from a business trip to their home or office. For example, if an employee leaves for a trip at 4 p.m., the first day of travel is from 4 p.m. that day until 4 p.m. the next. 

Lodging allowances are provided based on whether an employee spends the night in accommodations other than their own home. Typically, lodging allowances are based on the location and the current price rates for various hotel categories, based on company preferences for the level of hotels allowed. 

Unlike with other categories, usually lodging is an either/or determination. Employees are either allowed the lodging allowance or not based on the circumstances of the trip. 

Like with lodging, meal allowances are usually based on the prevailing costs of meals in each location. It assumes that a traveler will have three meals a day. 

Typically, a meal allowance covers both meals and incidentals, such as snacks. Often it is prorated based on the time in any given day a traveler is on the road. 

The meal allowance may also be reduced if there are meals provided as part of the work travel, such as part of a conference registration fee or transportation ticket. 

Managing Travel Allowances 

Managing travel allowances is a complex task. Here are some tips on how to effectively implement and manage a program: 

• Develop a Clear Policy. Travelers need to understand the specifics in your travel program and how allowances are used. The policy needs to spell out, for example, what expenses are allowed and not allowed and the ways in which allowances are calculated. Transparency is essential to ensure all employees understand how travel expenses are covered 
• Consider Incidentals. Business travelers face many complexities and challenges. You want a policy that makes it easy for travelers to navigate while on the road. Be sure your policy covers costs that may arise, including parking, fuel, tips, laundry services, printing, internet fees, and luggage check fees 
• Analyze Data. You need a system in place that collects and reports on travel data to allow you to better understand trends, shifts and challenges. With visibility into your travel program, you can make timely, well-informed decisions 

Developing Travel Allowance Policies and Guidelines 

If your company wants to develop a travel allowance policy, where should you begin? 

The policy should be rooted in a broader travel policy which should consider the following: 

• Scope. What aspects of business travel will your policy cover? 
• Coverage. Determine which elements of travel the policy will cover, such as air travel, lodging, meals, incidentals, and ground transportation 
• Reimbursement Types. Will your company use travel allowances and, if so, which types? 
• Participation. How will policies be determined? Be sure to include staff from human resources, finance, and departments that frequently travel, in determining the policy 
• Safety. Be sure your policy provides protection for employees while they are traveling  
• Expense Reporting. Develop tools or adopt that will be used for the reporting of travel expenses, with an emphasis on scalability, technology integration, and ease of use 

Technological Advancements in Travel Allowance Management 

Technology is changing the way companies manage business travel . There are powerful platforms available today that integrate travel policies, allow for the booking of travel and itinerary management and provide robust data collection and travel. 

Employees need access to easy-to-use tools that allow for the recording of receipts and other transactions, let them reconcile expenses and generate expense reports, and simplify approvals and routing. 

SAP Concur solutions can provide companies with integrated business travel, expense, and invoice solutions. With SAP Concur solutions, companies can book travel, manage expenses, integrate with business systems, manage invoices, and more. 

Learn more about how SAP Concur solutions can simplify your travel management . 

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Meal and vehicle rates used to calculate travel expenses for 2023

The rates for 2024  will be available on our website in 2025 . If you are an employer, go to Automobile and motor vehicle allowances .

Meal and vehicle rates for previous years are also available.

The following applies to the 2023 tax year.

To calculate meal and vehicle expenses, you may choose the detailed or simplified method. Your total travel expenses equal the total of the value of travel assistance provided by your employer and the travel expenses incurred by you. Include any travel expenses paid by your employer.

Detailed method – This method allows you to claim the actual amount that you spent. Keep your receipts in case the CRA asks to see them at a later date.

Simplified method – This method uses a flat rate for meals and vehicle expenses. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim.

Meal expenses

If you choose the  detailed method  to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent.

If you choose the  simplified method , claim in Canadian or US funds a flat rate of $23 per meal , to a maximum of $69 per day (sales tax included) per person, without receipts. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim.

Vehicle expenses

If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year; or during the 12-month period you choose for medical expenses.

Vehicle expenses include:

• operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs
• ownership expenses such as depreciation, provincial tax, and finance charges

Keep track of the number of kilometres you drove in that time period, as well as the number of kilometres you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometres driven for moving or medical expenses, or for northern residents deductions.

For example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return.

Although you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method , the CRA may still ask you to provide some documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to moving expenses and northern residents deductions, or the 12-month period you choose for medical expenses. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate from the chart below for the province or territory in which the travel begins.

Table of 2023 kilometre rates for the province or territory

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• Personal tax

Rates and allowances: travel — mileage and fuel allowances

Rates and allowances for travel including mileage and fuel allowances.

Travel — mileage and fuel rates and allowances

The attached document is classified by HMRC as guidance and contains information about rates and allowances for travel, including mileage and fuel allowances.

Rates for fuel charges have been updated for 2024 to 2025.

Rates for fuel charges have been updated for 2023 to 2024.

Rates for fuel charges have been updated for 2022 to 2023.

Rates for fuel charges have been updated for 2021 to 2022.

Information has been updated to include tax years 2018 to 2019 and 2019 to 2020, also removed some older details.

Rates, allowances and duties have been updated for the tax year 2017 to 2018.

First published.

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Declaring your travel allowance and claiming expenses

What to do if you receive a travel allowance to cover your travel expenses when travelling for work.

Last updated 25 April 2023

Deductible travel allowance expenses

Receiving a travel allowance from your employer does not automatically entitle you to claim a deduction for travel expenses.

A travel allowance expense is a deductible travel expense :

• you incur when you're travelling away from your home overnight to perform your employment duties
• that you receive an allowance to cover
• for accommodation, meals (food or drink), or incidentals.

You incur a travel allowance expense when you either:

• actually pay an amount for an expense
• have an obligation to pay an amount for the expense.

You can't claim a deduction if your employer either pays for or reimburses you for the expense.

If you don't incur any deducible travel allowance expenses, there is no need to consider if a travel allowance record keeping exception applies .

Example: no deductible travel allowance expenses incurred

Ainsley lives in Melbourne and is the regional manager of a clothing store chain. She must travel to Sydney for 3 days to attend the annual conference of managers.

Ainsley’s employer pays for her accommodation in Sydney, but she buys her own meals. When she returns to the office, Ainsley puts in a reimbursement claim for her meals, and her employer reimburses her for these expenses.

As Ainsley doesn't incur accommodation expenses and receives a reimbursement for the meal expenses, she can't claim a deduction for these expenses.

Since Ainsley hasn't received an allowance and she can't claim a deduction for her accommodation and meals, she doesn't need to consider whether she can rely on the travel allowance record keeping exception.

What to do if you receive a travel allowance

If your travel allowance is shown as an allowance on your annual income statement or payment summary, you:

• must include the allowance as income in your tax return
• can claim a deduction for the amount you spent on deductible travel allowance expenses
• you don't need to keep detailed records if your deduction for travel allowance expenses is within the reasonable amounts we specify.

If your travel allowance isn't shown on your annual income statement or payment summary and you spent the whole amount on deductible expenses, you:

• don't include the allowance as income in your tax return
• can't claim any deduction for your travel allowance expenses
• don't need to keep written evidence or travel records.

If you do this, you will not pay any income tax on your travel allowance.

However, if you spent more than your travel allowance on deductible travel allowance expenses, you:

• include the allowance as income in your tax return
• can claim a deduction for your travel allowance expenses
• you don't need to keep detailed records if your deduction for travel expenses is within the reasonable amounts we specify.

Example: travel allowance on income statement

William works for a company in Sydney. William’s employer requires him to visit clients in country New South Wales once a month. This involves William sleeping away from his home for 3–4 nights.

William’s employer pays him an allowance of $150 per night to cover accommodation, meal and incidental expenses, and includes the allowance on his income statement.

As William’s employer reports the travel allowance on his income statement, William must include the allowance as income in his tax return. He can claim a deduction for the amount he spends on accommodation, meals and incidental expenses while he is travelling away from his home overnight for work.

Unless he can rely on the travel allowance record keeping exception, William will have to keep receipts or other written evidence for all his accommodation, meals and incidental expenses.

Example: travel allowance not reported on income statement

George's employment duties require him to occasionally travel away from his home overnight. When he travels overnight for work, his employer pays him an allowance of $80 to cover accommodation expenses and reimburses him for the cost of his meals. George's employer doesn't show the allowance on his income statement.

When George travels overnight for work he stays in the same place, which costs him $100 per night.

As the travel allowance isn't on George's income statement and he has spent the entire allowance on deductible travel allowance expenses, he doesn't need to:

• declare the travel allowance as income in his tax return
• keep written evidence of his accommodation expenses.

George also can't claim a deduction for the expenses.

However, as George has spent more than the amount of the allowance on deductible travel allowance expenses, he can include the amount as income in his tax return. He can then claim a deduction for the amount he spent on accommodation. Unless George can rely on the travel allowance record keeping exception, he will have to keep written evidence.

A Quick Reference For Australian Tax Rates And Related Information

ATO Reasonable Travel Allowances

‘Reasonable’ allowances received in accordance with ATO’s reasonable travel allowances schedules are not required to be declared as income, and can be excluded from the expense substantiation requirements.

Per diem rate schedules of amounts considered reasonable are set out in Tax Determinations published by the Tax Office annually.

Tax Ruling TR 2004/6 describes the substantiation exception for expenses which are in line with the prescribed reasonable allowance amounts.

2021, 2022, 2023 and 2024 rates and for prior years are set out below.

The annual determinations set out updated ATO reasonable allowances for each financial year for:

• overtime meal expenses – for food and drink when working overtime
• domestic travel expenses – for accommodation, food and drink, and incidentals when travelling away from home overnight for work
• overseas travel expenses – for food and drink, and incidentals when travelling overseas for work

On this page:

2017- 18-Addendum

More information

Substantiation rules

Substantiation in practice

Alternative: Business travel expense claims

Distinguishing Travelling, Living Away and Accounting for Fringe Benefits

See also: Super for long-distance drivers – ATO

Allowances for 2023-24

The full document in PDF format: 2023-24 Determination TD TD 2023/3 (pdf).

The 2023-24 reasonable amount for overtime meal expenses is $35.65.

Reasonable amounts given for meals for employee truck drivers (domestic travel) are as follows:

• breakfast $28.75
• lunch $32.80
• dinner $56.60

For full details including domestic and overseas allowances in accordance with salary levels, refer to the full determination document:

2023-24 Domestic Travel

Table 1：Salary $138,790 or less

Table 2: Salary $138,791 to $247,020

Table 3: Salary $247,021 or more

Table 4: High cost country centres accommodation expenses

Table 5: Tier 2 country centres

Table 5a: Employee truck driver’s meals (food and drink)

2023-24 Overseas Travel

Table 6: Salary $138,790 or less

Table 7: Salary $138,791 to $247,020

Table 8: Salary $247,021 or more

Table 9: Table of countries

Table 1：Reasonable amounts for domestic travel expenses – employee’s annual salary $138,790 or less

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $138,791 to $247,020

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $247,021 or more

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,790 or less

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $138,791 to $247,020

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary $247,021 or more

Allowances for 2022-23

The full document in PDF format: 2022-23 Determination TD 2022/10 (pdf).

The 2022-23 reasonable amount for overtime meal expenses is $33.25.

Reasonable amounts given for meals for employee truck drivers are as follows:

• breakfast $26.80
• lunch $30.60
• dinner $52.75

2022-23 Domestic Travel

Table 1: Salary $133,450 and below

Table 2: Salary $133,451 to $237,520

Table 3: Salary $237,521 and above

2022-23 Overseas Travel

Table 6: Salary $133,450 and below

Table 7: Salary – $133,451 to $237,520

Table 8: Salary – $237,521 and above

Table 1: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,450 and below

Table 2: Reasonable amounts for domestic travel expenses – employee’s annual salary $133,451 to $237,520

Table 3: Reasonable amounts for domestic travel expenses – employee’s annual salary $237,521 and above

Table 4: Reasonable amounts for domestic travel expenses – high-cost country centres accommodation expenses

Table 5a: Reasonable amounts for domestic travel expenses – employee truck driver’s meals (food and drink)

Table 6: Reasonable amounts for overseas travel expenses – employee’s annual salary $133,450 and below

Table 7: Reasonable amounts for overseas travel expenses – employee’s annual salary $133,451 to $237,520

Table 8: Reasonable amounts for overseas travel expenses – employee’s annual salary $237,521 and above

Allowances for 2021-22

The full document in PDF format: 2021-22 Determination TD 2021/6 (pdf).

The document displayed with links to each sections is set out below.

For the 2021-22 income year the reasonable amount for overtime meal expenses is $32.50

2021-22 Domestic Travel

Table 1: Salary $129,250 and below

Table 2: Salary $129,251 to $230,050

Table 3: Salary $230,051 and above

2021-22 Overseas Travel

Table 6: Salary $129,250 and below

Table 7: Salary – $129,251 to $230,050

Table 8: Salary – $230,051 and above

2021-22 Domestic Table 1: Employee’s annual salary – $129,250 and below

2021-22 Domestic Table 2: Employee’s annual salary – $129,251 to $230,050

2021-22 Domestic Table 3: Employee’s annual salary – $230,051 and above

2021-22 Domestic Table 4: High cost country centres – accommodation expenses

2021-22 Domestic Table 5: Tier 2 country centres

2021-22 Domestic Table 5a: Employee truck driver’s meals (food and drink)

2021-22 Overseas Table 6: Employee’s annual salary – $129,250 and below

2021-22 Overseas Table 7: Employee’s annual salary – $129,251 to $230,050

2021-22 Overseas Table 8: Employee’s annual salary – $230,051 and above

2021-22 Overseas Table 9: Table of countries

Allowances for 2020-21

Download full document in PDF format: 2020-21 Determination TD 2020/5 (pdf).

The document displayed with links to each section is set out below.

For the 2020-21 income year the reasonable amount for overtime meal expenses is $31.95 .

2020-21 Domestic Travel

Table 1: Salary $126,970 and below

Table 2: Salary $126,971 to $225,980

Table 3: Salary $225,981 and above

2020-21 Overseas Travel

Table 6: Salary $126,970 and below

Table 7: Salary – $126,971 to $225,980

Table 8: Salary – $225,981 and above

2020-21 Domestic Travel 2020-21 Domestic Table 1: Employee’s annual salary – $126,970 and below

2020-21 Domestic Table 2: Employee’s annual salary – $126,971 to $225,980

2020-21 Domestic Table 3: Employee’s annual salary – $225,981 and above

2020-21 Domestic Table 4: High cost country centres – accommodation expenses

2020-21 Domestic Table 5: Tier 2 country centres

2020-21 Domestic Table 5a: Employee truck driver’s meals (food and drink)

2020-21 Overseas Travel 2020-21 Overseas Table 6: Employee’s annual salary – $126,970 and below

2020-21 Overseas Table 7: Employee’s annual salary – $126,971 to $225,980

2020-21 Overseas Table 8: Employee’s annual salary – $225,981 and above

2020-21 Overseas Table 9: Table of countries

Allowances for 2019-20

The determination in sections:

Domestic Travel

Table 1: Employee’s annual salary – $124,480 and below

Table 2: Employee’s annual salary – $124,481 to $221,550

Table 3: Employee’s annual salary – $221,551 and above

Table 4: High cost country centres – accommodation expenses

Table 5a: Employee truck driver’s meals (food and drink)

Overseas Travel

Table 6: Employee’s annual salary – $124,480 and below

Table 7: Employee’s annual salary – $124,481 to $221,550

Table 8: Employee’s annual salary – $221,551 and above

For the 2019-20 income year the reasonable amount for overtime meal expenses is $31.25.

The reasonable travel and overtime meal allowance expense amounts commencing 1 July 2019 for the 2019-20 income year are contained in Tax Determination TD 2019/11 (issued 3 July 2019).

Download the PDF or view online here .

Domestic Travel Table 1: Employee’s annual salary – $124,480 and below

Domestic Travel Table 2: Employee’s annual salary – $124,481 to $221,550

Domestic Travel Table 3: Employee’s annual salary – $221,551 and above

Domestic Travel Table 4: High cost country centres – accommodation expenses

Domestic Travel Table 5: Tier 2 country centres

Domestic Travel Table 5a: Employee truck driver’s meals (food and drink)

Overseas Travel Table 6: Employee’s annual salary – $124,480 and below

Overseas Travel Table 7: Employee’s annual salary – $124,481 to $221,550

Overseas Travel Table 8: Employee’s annual salary – $221,551 and above

Overseas Travel Table 9: Table of countries

Substantiation and Compliance

Taxation Ruling TR 2004/6 explains the the way in which the expenses can be claimed within the substantiation rules, including the requirement to obtain written evidence and exemptions to that requirement.

Allowances which are ‘reasonable’ , i.e. comply with the Reasonable Allowance determination amounts and with TR 2004/6 are not required to be declared as income and are excluded from the expense substantiation requirements.

These substantiation rules only apply to employees. Non-employees must fully substantiate their travel expense claims. Expenses for non-working accompanying spouses are excluded.

Key points :

To be claimable as a tax deduction, and to be excluded from the expense substantiation requirements, travel and overtime meal allowances must:

• be for work-related purposes; and
• be supported by payments connected to the relevant expense
• for travel allowance expenses, the employee must sleep away from home
• if the amount claimed is more than the ‘reasonable’ amount set out in the Tax Determination, then the whole claim must be substantiated
• employees can be required to verify the facts relied upon to claim a tax deduction and/or the exclusion from the substantiation requirements
• an allowance conforming to the guidelines doesn’t need to be declared as income or claimed in the employee’s tax return, unless it has been itemised on the statement of earnings. Amounts of genuine reasonable allowances provided to employees(excludng overseas accommodation) are not required to be subjected to tax withholdings or itemised on an employee’s statement of earnings.
• claims which don’t match the amount of the allowance need to be declared.

The Tax Office has issued guidance on their position.

[11 August 2021] Taxation Ruling TR 2021/4 reviews the tax treatment of accommodation and food and drink expenses, and provides 14 examples which distinguish non-deductible living expenses from deductible travelling on work expenses. FBT implications for the ‘otherwise deductible’ rule and travel and LAFHA allowances are also considered.

[11 August 2021] Practical Compliance Guideline PCG 2021/3 (which finalises draft PCG 2021/D1 ) provides the ATO’s compliance approach to determining if allowances or benefits provided to an employee are travelling on work, or living at a location.

For FBT purposes an employee is deemed to be travelling on work if they are away for no more than 21 consecutive days, and fewer than 90 days in the same work location in a FBT year.

See also: Travel between home and work and LAFHA Living Away From Home

The issue of annual determination TD 2017/19 for the 2017-18 year marked a tightening of the Tax Office’s interpretation of the necessary conditions for the relief of allowances from the substantiation rules, which would otherwise require full documentary evidence (e.g. receipts) and travel records. (900-50(1))

For a full discussion of the issues, this article from Bantacs is recommended: Reasonable Allowance Concessions Effectively Abolished By The ATO .

Prior to 2017-18

In summary: Prior to 2017-18 the Tax Office rulings stated the general position that provided a travel allowance was ‘reasonable’ (i.e. followed the ATO-determined amounts) then substantiation with written evidence was not required. “In appropriate cases”, however employees may have been required to show how their claim was calculated and that the expense was actually incurred.

What changed

The relevant wording was changed in the 2017-18 determination to now require that more specific additional evidence be available if requested. This additional evidence is not prescribed in the tax rules, but represents a higher administrative standard being applied by the Tax Office.

The required evidence includes being able to show:

• you spent the money on work duties (e.g. away from home overnight for work)
• how the claim was worked out (e.g. diary record)
• you spent the money yourself (e.g. credit card statement, banking records)
• you were not reimbursed (e.g. letter from employer)

Other requirements highlighted by the Bantacs article include:

• a representative sample of receipts may be required to show that a reasonable allowance (or part of it) has actually been spent (TD 2017/19 para 20)
• hostels or caravan parks are not considered eligible for the accommodation component of a reasonable allowance because they are not the right kind of “commercial establishment”, examples of which are hotels, motels and serviced apartments (para 14)
• reasonable amounts for meals can only be for meals within the specific hours of travel (not days), and can only be for breakfast, lunch or dinner (para 15), and therefore could exclude, for example, meals taken during a period of night work.

Tip : The reasonable amount for incidentals still applies in full to each day of travel covered by the allowance, without the need to apportion for any part day travel on the first and last day. (para 16).

Alternative: business travel expense claims

With the burden of proof on ‘reasonable allowance’ claims potentially quite high, an alternative is to opt for a travel expense claim made out under the general substantiation rules for employees, or under the general rules for deductibility for businesses.

The kind of business travel expenses referred to here could include:

Airfares Accommodation Meals Car hire Incidentals (e.g. taxi fares)

The Tax Office has an article describing how to meet the requirements for claiming travel expenses as a tax deduction. See: Claiming a tax deduction for business travel expenses

Travel diary

A travel diary is required by sole traders and partners for overnight expenses and recommended for everyone else (including companies and trusts).

It is important to exclude any private portion of travelling expense which is non-deductible, or if paid on behalf of an employee gives rise to an FBT liability.

For example the expenses of a non-business associate (e.g. spouse), the cost of private activities such as sight-seeing, and accommodation and associated expenses for the non-business portion of a trip.

Airfares to and from a business travel destination would not need to be apportioned if the private element of the trip such as sightseeing was only incidental to the main purpose and time spent.

This is an example of a travel diary for Rebecca who owns a business as a sole trader landscape gardener. (courtesy of ATO Tax Time Fact Sheet )

Allowances for 2018-19

For the 2018-19 income year the reasonable amount for overtime meal allowance expenses is $30.60 .

The meal-by-meal amounts for employee long distance truck drivers are $24.70, $28.15 and $48.60 per day for breakfast, lunch and dinner respectively.

This determination includes ATO reasonable allowances for

(a) overtime meal expenses – for food and drink when working overtime (b) domestic travel expenses – for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and Federal Members of Parliament) (c) overseas travel expenses – for food and drink, and incidentals when travelling overseas for work

Allowances for 2017-18

An addendum was issued modifying paragraphs 23 to 30 of determination TD 2017/19 setting out the new reasonable amounts, and consolidated into TD 2017/19 as linked above. For reference purposes, the first-released version of TD 2017/19 issued 3 July 2017 is linked here .

2017-18 Addendum: ATO reinstates the meal-by-meal approach for truck drivers’ travel expense claims

On 27 October 2017 the ATO announced the reinstatement of the meal-by-meal approach for truck drivers who claim domestic travel expenses for meals. The following new reasonable amounts have now been included in an updated version of the current ruling (see on page 7)：

For the 2017-18 income year the reasonable amount for overtime meal allowance expenses is $30.05 .

This determination contains ATO reasonable allowances for:

• overtime meals
• domestic travel
• employee truck drivers
• overseas travel
• $24.25 for breakfast
• $27.65 for lunch
• $47.70 for dinner

The amount for each meal is separate and can’t be combined into a single daily amount or moved from one meal to another.

See: ATO media release

Allowances for 2016-17

For the 2016-17 income year the reasonable amount for overtime meal allowance expenses is $29.40 .

Allowances for 2015-16

Download the PDF or view online here . For the 2015-16 income year the reasonable amount for overtime meal allowance expenses is $ 28.80 .

Allowances for 2014-15

Allowances for 2013-14

The reasonable travel and overtime meal allowance expense amounts for the 2013-14 income year are contained in Tax Determination TD 2013/16 . For the 2013-14 income year the reasonable amount for overtime meal allowance expenses is $ 27.70 .

Allowances for 2012-13

The reasonable travel and overtime meal allowance expense amounts for the 2012-13 income year are contained in Tax Determination TD 2012/17 . For the 2012-13 income year the reasonable amount for overtime meal allowance expenses is $27.10

Allowances for 2011-12

The reasonable travel and overtime meal allowance expense amounts for the 2011-12 income year are contained in Tax Determination TD 2011/017 . For the 2011-12 income year the reasonable amount for overtime meal allowance expenses is $26.45

This page was last modified 2023-06-28

Money blog: Cost of £7 pint broken down - how much is tax and profit?

The cost of draught lager has gone up nearly 30% since January 2019, according to the Office for National Statistics. Read this and more in the Money blog, your place for personal finance news. Leave a comment on stories we've covered, or a question for our experts, in the form below.

Thursday 4 April 2024 20:15, UK

• British Savings Bonds announced in the budget go on sale - but experts aren't convinced
• What makes up the cost of a £6 pint - and how much is profit?
• How to make your money work harder while it's sat in your current account
• How much will your take-home pay increase this month with NI cut? Use our calculator
• 'Are they going to go around sniffing people?' Big Issue founder says government has 'lost the plot' over homelessness plan
• Eight big price hikes this week - and six boosts to Britons' pockets
• All the places kids can eat cheap or free this Easter

Ask a question or make a comment

Tens of thousands of people are facing crippling tax demands from HMRC for taxes their employers failed to pay. 

It's a campaign that has driven people to the brink of bankruptcy and devastated families.

At least 23 victims have taken - or attempted to take - their own lives.

For the first time, two people who tried to end their lives have shared their story with Sky News.

The following article contains references to suicide that readers may find distressing.

We've all found ourselves stuck on a delayed train and wished we'd chosen any other route to get home. You might even be on one right now.

Well, thanks to a new study you can at least take note of routes you might want to avoid.

It has listed the worst offending companies on the UK's rail network by looking at official data from the Office of Rail and Road between January 2021 and September 2023.

It looked at trains that were cancelled or delayed by 15 minutes or more during that time period.

The research found Avanti West Coast had 15.36% of its services delayed or cancelled. 

The study's second worst offender, with 12.32% of all trains either cancelled or seriously late, is Grand Central Rail . 

And  CrossCountry was the third least reliable operator, with 12.26% of trains arriving 15 minutes or more late, or being cancelled altogether. 

Axel Hernborg, founder of Tripplo , which conducted the study, said: " It's no secret that the UK's rail network is a far shout from those within mainland Europe in terms of efficiency and reliability, and these findings simply underscore that."

Look at the table below for the full list of the 10 least reliable train operators, as ranked by the travel website. The column on the right shows the number of minutes customers lost in delays.

By Faith Ridler, news reporter

At the start of the year, I set myself what felt like an impossible challenge - to make enough cash to finally go on my dream holiday to Japan – all through side hustles.

After a few false starts – and a lot of cat sitting – I discovered Vinted, a second-hand selling app which had the very convenient side effect of helping me declutter my very tiny London flat.

I set up my account at the very end of January, listing a few items that were spilling out of my wardrobe – jackets, dresses and shoes I hadn’t worn once since purchasing them.

I also listed some craft supplies that had become a hobby graveyard on my cluttered desk during COVID lockdowns.

To my surprise, pretty much everything sold.

And to date, I've made the hefty sum of around £1,500. 

This was more than enough for my flight to Japan, a new suitcase, and a hotel for my arrival in Tokyo this summer.

Here are the tips and tricks I’ve learned along the way…

Do your research

The biggest piece of advice I could give you if you’re thinking about selling on Vinted is to make sure you know the value of what you're selling.

I was surprised to find through my own selling experience that some brands hold their value much better than others. 

For example, a dress I bought for £40 from a brand called Louche sold (after some weeks) for only £4.

On the other hand, a Lucy & Yak T-shirt I bought for £30 sold used for £20.

You may ask, how do I know what something is worth?

The best way to investigate this is to check what other people are doing on the app. That way, you don’t list things too cheaply and end up losing out.

Other items I found hold their value are Nintendo Switch games, some of which I sold on for face value after completing a playthrough myself.

An important note – make sure you check which items you can sell through Vinted before listing. If you have listings deleted too often, you can get your account banned. You can find this information through the app itself.

No printer? InPost lockers are your friend

A key element of Vinted selling is physically posting the items, which can become a bit of a headache if you don’t know the ins and outs of the app.

I fell victim to the many shipping options at the start of my selling journey – until a kind friend mentioned you can actually switch off methods not available in your area in the Postage tab of Settings.

My advice would be to have a good look at what you can offer for delivery, and make sure those are the only options available for people buying items through your page.

If – like me – you don’t have a printer, you can turn off every option but InPost lockers.

These are postal lockers you simply need to scan a QR code to open and leave the parcel inside.

No label, no problem.

Learn how to haggle

This was something that shocked me about the app.

Although you set a price for your items, almost everybody will try to haggle the price down.

You can ask for people not to send offers in the description of the items, but I’ve had very limited success with that method.

What I find works best is to list the item for slightly more than you would accept, and just let people haggle down. You're still earning the best price, and the buyer goes away with a "deal".

Everybody wins.

Taxes and Vinted

When it comes to earning money through any method, you always have to consider the tax ramifications.

However, as Vinted explains clearly on its website , if the money you make on the app over a year is less than what you paid for the items initially, you pay no tax.

It adds: "The only time that an individual item might be taxable is when you sell it for more than £6,000 and there is a profit from the sale.

"Even then, you can use your capital gain tax-free allowance (which is £3,000) to reduce this profit."

Essentially, if, like me, you're simply decluttering your way to Japan, you're very unlikely to find yourself crossing paths with HMRC.

Trade groups have warned of higher food prices and empty supermarket shelves because of new post-Brexit border fees being introduced this month.

A maximum charge of £145 will apply on imports of plant and animal products, such as cheese and fish, entering the UK through the Port of Dover and Eurotunnel from 30 April.

The fees are intended to cover the cost of operating new border control posts required after Brexit, and will not apply to goods brought into the UK for personal use, the government said.

But importers warned the new charges could lead to higher prices for consumers.

Read more here ...

Ted Baker is the latest in a string of high-street giants to call in administrators in recent years. 

But how does it affect you? 

Let's use Ted Baker as an example. 

Purchases and returns

You can still purchase online or walk into a Ted Baker shop and buy items, but you could run into trouble returning them. 

If the retailer stops trading, it may not be able to get your money back to you.

If that is the case, you would have to file a claim with Teneo (Ted Baker's administrator) to join a list of creditors owed money by Ted Baker – and even then there's no guarantee you'd get your money back.

You could also file a claim with your debit or credit card provider - but again, no guarantees. 

TL;DR: If you have one - use it as soon as possible. 

Teneo has made no changes to the way gift cards can be used at Ted Baker, but as is the case with all administrators, it can change the terms and conditions at will. 

As above, if you lose out on cash because of a company going into administration, you can raise it with the administrators themselves. 

Credits and debits

As we mentioned earlier, you can file a claim with your debit or credit card provider to recover lost funds - but how exactly does that work?

• Credit card:  If you bought any single item costing between £100-£30,000 and paid on a credit card, the card firm is liable if something goes wrong. If any purchase was less than £100, you may still be able to get your money back via chargeback
• Debit card:  Under chargeback, your bank can try to get your money back from Ted Baker's bank. However, be aware that this is not a legal requirement and it can later be disputed and recalled back to Ted Baker's bank

A US state is considering a bill giving employees the right not to respond to calls, emails and texts from their bosses outside of paid work hours.

The so-called "right to disconnect" would allow California's labour commission to fine employers for interrupting personal time, reports our partner network NBC News.

The bill makes exceptions for emergencies, scheduling and collective bargaining.

The state's Chamber of Commerce called the proposed legislation a step backwards for flexibility.

However, Professor Amira Barger told NBC the changes would help tackle an "epidemic of burnout" and were a "necessary adaptation" for the future of work.

The planned £15bn mega-merger of UK mobile networks Vodafone and Three is to face an in-depth investigation by the competition watchdog.

The Competition and Markets Authority confirmed it will launch a so-called Phase 2 probe after both firms told the regulator they would not be offering measures to ease its concerns ahead of the deadline, 2 April.

The CMA said last month that the tie-up could have a "substantial" impact on competition, warning it may lead to higher prices and reduced quality.

Read more in our full story .

School strikes over teachers' pay and funding could be staged in September, the leader of a teaching union has warned.

Daniel Kebede, general secretary of the National Education Union (NEU), the largest education union in the UK, did not rule out launching a ballot on walkouts for the autumn term.

Teachers at the NEU’s annual conference in Bournemouth will vote today on whether the union should "build capacity" to deliver national industrial action.

Ofgem is considering plans for rules on the use of artificial intelligence in the energy industry amid fears the technology could risk "tacit collusion", reports  The Times.

Algorithms that make pricing decisions for companies would make it more difficult to identify who is accountable when it comes to competition issues, the regulator said.

Customers also need to be protected from higher-risk AI used to help balance supply and demand that could cause power outages if they fail.

By Daniel Binns, business reporter

The FTSE 100 is up more than 0.4% this morning, after a rise in the price of gold boosted precious metal mining firms.

Also up is British fintech Cab Payments. Its shares have shot up 11% in early trading.

It comes after the firm secured a payment provider licence in the Netherlands, paving the way for it to expand in the country.

Meanwhile, the cost of oil continues to slowly creep up in the wake of investor concerns over the Middle East and Ukraine's attacks on Russian refineries.

A barrel of Brent crude is currently trading at just over $89 (£70).

The currency markets remain stable, with £1 buying you $1.26 US or €1.17, with the rates almost unchanged from yesterday.

Google is considering charging for premium AI-powered features, the Financial Times reports.

It would be the first time the tech giant put any core products behind a paywall, as it seeks to gain ground in the fast-moving AI space

The FT cited sources familiar with Google's plans as saying it could incorporate a generative AI-powered search engine in its subscription services, which already provide access to its new Gemini AI assistant in Gmail and Docs.

Google's traditional search engine would remain free of charge and ads would continue to appear alongside search results even for subscribers.

"We're not working on or considering an ad-free search experience. As we've done many times before, we'll continue to build new premium capabilities and services to enhance our subscription offerings across Google," the company told Reuters.

Google, which invented the foundational technology for today's AI boom, is locked in battle with two industry players that have captured the business world's attention - ChatGPT's creator OpenAI and its backer Microsoft.

Every Thursday we look at a different savings option, explain the pros and cons, and reveal the best deals on the market (see table below for that).  This week we're talking about the top interest-paying current accounts. Savings Champion founder Anna Bowes  writes...

From time to time there are plenty of incentives available to attempt to encourage people to switch their current accounts - but switching is not always necessary. There are also some current accounts that offer competitive interest rates, even if there's not a switching incentive. 

While not as prevalent as they have been in the recent past, interest-paying current accounts can offer some very competitive interest rates – especially bearing in mind that most current accounts offer no interest at all. In fact, according to the Bank of England, there is £253bn currently held in these non-interest bearing accounts.

These accounts are usually more complicated than a traditional savings account and there are a number of hoops to jump through and potential hazards to avoid, in order to get the returns on offer. 

Potential traps to look out for are: low maximum balances, introductory rates, monthly fees, a requirement to set up direct debits, a minimum amount to pay in each month and a minimum amount to maintain in the account.

All of these factors need to be taken into account when choosing an account and if you feel that you may fall foul of the rules, take a look at one of the alternatives that will suit your circumstances better. 

Setting up standing orders is an easy way to ensure you deposit and withdraw the qualifying amounts each month and can be effective in managing multiple current accounts. It may take a while to set it all up, but the rates on offer could make it worthwhile. It is also worth remembering that many of these accounts can be opened without having to switch your main current account. 

A final point to bear in mind is that some of these accounts give you access to exclusive savings accounts, which often pay competitive rates - especially true with regular savings accounts.

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