Travel allowances or LAFHA: Which applies to you?

Travel Allowance or living-away-from-home allowance (LAFHA)? Understanding the difference between these two allowances can be difficult, particularly when there is the perception of an overlap. The allowances are in fact different and have different consequences for the person receiving them. An amount paid by your employer to cover expenses such as accommodation, food, or drinks while you travel for business is typically know as a travel allowance. There is also another type of allowance, called the living-away-from-home allowance (LAFHA), which compensates you for additional expenses when you are required to live away from home due to work duties. So, … Continue reading Travel allowances or LAFHA: Which applies to you?