Guide To Expenses
Expenses – What Are They?

HM Revenue & Customs (HMRC) states, that for any expense to be allowable, it must be wholly, exclusively and necessary for business purposes. It is also necessary for a valid receipt to be
retained in support of any expense claimed (excluding subsistence).

The following are a list of the major types of expenses that you are likely to incur:

  • travel – public transport or mileage (if using your own vehicle)
  • subsistence
  • hotels for business purposes
  • postage & stationery
  • training & seminars

IMPORTANT DISCLAIMER

  • If your contract rate is less than £15 per hour, you may NOT be able to claim all your incurred expenses. This is due to legislated National Minimum Wage requirements. Please seek advice from the Client Service Team.
  • When making a claim you are confirming that the expenses are wholly and exclusively on behalf of your contract.
  • Copies of valid receipts must be provided as outlined below.
  • Submitting a claim confirms that you have retained the original receipts/logs for your personal records. This is important, should HMRC request sight of them.

Travel Expenses

Examples of business travel:

  • travel from home to work site
  • attending training courses
  • travel between different work sites
  • parking & Congestion Charge

Public Transport

If you are travelling via public transport (e.g. Tube, train, bus), please complete the Timesheet Header. Receipts do not need to be submitted, however, we do recommend that you retain them for your personal records.

If you are claiming for a taxi or airfare expense, you must always send in a copy of your receipts. Faxed or emailed receipt copies are acceptable.

Mileage

If you use a vehicle for business travel then you can claim a business mileage expense. Using HMRC’s Fixed Profit Car Scheme you personally are reimbursed for each business mile travelled.

Currently, the rates per mile that may be claimed from the use of your privately owned car, motorbike or bicycle are as follows:

 

Car

 Motorbike Bicycle
Up to 10,000 miles per annum 40p per mile 24p per mile 20p per mile
Over 10,000 miles per annum 25p per mile 24p per mile 20p per mile

If you are claiming a mileage expense, please complete the enclosed Timesheet Header.

Please ensure you record the cumulative miles each time you claim in order to detect the point where the annual 10,000 mile threshold is reached.

Parking & Congestion Charge

If you use your vehicle for business travel and must park your vehicle in a paid parking lot then you may claim the cost of this expense. Likewise, if your contract requires you to use your own vehicle within London’s Congestion Zone, within the charge hours, you may also claim the cost of this.

If you are claiming for a parking or Congestion Charge, please complete the enclosed General Expense Claim form. You must always send in a copy of your receipts, faxed or emailed receipt copies are acceptable.

Subsistence

If you are a Site Based contractor you are able to claim a contribution to your subsistence. The contributions are:

  • £5 per day if your contract rate is less than £10 per hour. (This is capped to ensure that your Taxable Salary does not fall below National Minimum Wage requirements).
  • £9 per day if you work 7.5 hours or less and your travel time is less than two (2) hours per day.
  • £15 per day if you work 8 hours or more OR if you travel more than two (2) hours per day. This only applies if your contract rate is £10 or more per hour.
  • £22.50 per 24 hour period you are away from your primary residence (overnight subsistence)

Your subsistence claim must be supported by your Timesheet. Subsistence (food and drink) has to be strictly for your sustenance rather than for entertainment purpose.

To claim your subsistence contribution, please complete the enclosed Timesheet Header. Receipts are not required unless claiming overnight subsistence. In this instance, a copy of your hotel bill will be required to substantiate your claim.

Hotels for Business Purposes

If you are required to stay overnight away from home for work then you may claim back a deduction for the costs of your stay. Expenses allowed are accommodation incurred for yourself and overnight subsistence as prescribed above. Care must be taken that claims are not deemed excessive.

To claim your accommodation expense, please complete the enclosed General Expense
Claim form and provide copies of relevant receipts.

Training Courses & Seminars

Training courses, provided that they retrain or enhance existing skills, are allowable. Care must be taken to ensure that the training course does not fall foul of the Duality of Purpose rule. For example, an MBA or Degree course would be seen to enhance your own skills rather than being of benefit to the company.

To claim your training expense, please complete the enclosed General Expense
Claim form and provide copies of relevant receipts.

Postage & Stationery

To claim your postage and/or stationery expense, please complete the enclosed General Expense
Claim form and provide copies of relevant receipts.

Eye Tests

An eye test expense incurred by yourself may be claimed if your contract requires you to use a computer screen. A qualified optician must carry out the test and only one test may be claimed per year.

To claim your eye test expense, please complete the enclosed General Expense
Claim form and provide copies of relevant receipts.

Child Care

You may be entitled to claim child care as a salary sacrifice. Please speak with the Client Service Team if you think you may benefit from this expense.

For more information on what expenses can be offset please Contact Us.