What does the term 'per diem' mean?
Per diem US Business Mileage Reimbursement Rate. Fixed "per diem" (and "per mile") rates eliminate the need for employees to prepare, and employers to scrutinise, a detailed expense report with supporting receipts to document amounts spent while travelling on business. Instead, employers pay employees a standard daily rate without regard to actual expenditure. Accommodation and subsistence (meals) payments paid as fixed daily amounts are described as "scale rate expenses payments" by the UK HM Revenue & Customs (HMRC). HMRC guidance does not use the term "per diem", but it is used by some organisations. HMRC allows scale rate expenses payments for income
Per diem properties in the local lodging industry."; this means that per diem varies depending on the location of the hotel—for instance, New York City has a higher rate than Gadsden, Alabama. To qualify for a "per diem", work-related business activity generally requires an overnight stay. The IRS code does not specify a number of miles. However, based on case precedent and IRS rulings, it is commonly accepted that an overnight stay is required and actually occurs to justify payment of per diem allowance. The purpose of the per diem payment (or the deduction of expenses when inadequate reimbursements are provided) is