I'm an IT contractor & wondering if I have to adopt the reduced civil service subsistence & mileage rates? Are these rates an official maximum rate that can be paid?
They are the MAXIMUM rates that can be paid under the approved rates scheme. However I am not aware that one MUST pay those rates. I.e. if one wishes to pay less then one may do so. The Revenue Statement of Practice says "up to" and "must not exceed"
These rates are the maximum the employer can reimburse free of tax.
Im not sure but would assume that the recently announces decrease of mileage and subsistence would be reflected in the tax arrangements just as increases were over the last few decades.