Contractor Expenses

What expenses can I claim?

As a contractor working under an umbrella company, you are entitled to claim certain allowable expenses. The expenses must be directly related to your work assignment. This is one of the major benefits of being a contractor rather than being permanently employed. Submit your expenses along with your timesheets and the umbrella company will manage all of the necessary administration for you. Your expenses will be offset against your taxable income for that week/month, therefore saving you money on your tax deductions, increasing your take home pay.

Here are the main expenses allowed as a contractor under an umbrella company:

Travel

Contractors can claim the cost of travel to and from your place of work, provided your workplace is "temporary" i.e. your contract is for less than two years. If you will be working at the same place for two years or more, this no longer counts as a temporary workplace and you will not be entitled to claim travel expenses. Read more about the two year rule here.

All methods of public transport are compensated for such as bus or train. Car travel expenses are paid per mile to cover petrol and maintenance. You can also claim for parking at your work assignment.

The current approved mileage allowance payments (AMAP) are:

Vehicle

Cars / Vans

Motorbikes

Bicycle

Per Mile

25p

24p

20p

Business Items

Certain other business expenses can be claimed back like training and equipment.

All items must be specifically necessary for your work assignment. Electronic devices like smart phones and laptops are included as well as software.

You may be eligible to claim for a tax refund on other things like stationery, equipment, accommodation and subsistence. You can apply directly to HMRC at the end of the tax year (5th April) via a self-assessment form.

Keep records of your expenses

Your umbrella company may not ask to see receipts but HMRC will if they are inspecting you.

Read More

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Contractor Expenses

What expenses can I claim?

As a contractor working under an umbrella company, you are entitled to claim certain allowable expenses. The expenses must be directly related to your work assignment. This is one of the major benefits of being a contractor rather than being permanently employed. Submit your expenses along with your timesheets and the umbrella company will manage all of the necessary administration for you. Your expenses will be offset against your taxable income for that week/month, therefore saving you money on your tax deductions, increasing your take home pay.

Here are the main expenses allowed as a contractor under an umbrella company:

Travel

Contractors can claim the cost of travel to and from your place of work, provided your workplace is "temporary" i.e. your contract is for less than two years. If you will be working at the same place for two years or more, this no longer counts as a temporary workplace and you will not be entitled to claim travel expenses. Read more about the two year rule here.

All methods of public transport are compensated for such as bus or train. Car travel expenses are paid per mile to cover petrol and maintenance. You can also claim for parking at your work assignment.

The current approved mileage allowance payments (AMAP) are:

Vehicle

Cars / Vans

Motorbikes

Bicycle

Per Mile

25p

24p

20p

Business Items

Certain other business expenses can be claimed back like training and equipment.

All items must be specifically necessary for your work assignment. Electronic devices like smart phones and laptops are included as well as software.

You may be eligible to claim for a tax refund on other things like stationery, equipment, accommodation and subsistence. You can apply directly to HMRC at the end of the tax year (5th April) via a self-assessment form.

Keep records of your expenses

Your umbrella company may not ask to see receipts but HMRC will if they are inspecting you.

Read More

The quickest way to get
the best take home pay

Stop losing your hard earned cash!

Fill in your details below and start saving now!

Your information is safe: Privacy Policy