What
are allowable expenses:
Set
out below are brief summaries of the rules for expense
and travel claims.
Travel
Expenses
Travel expenses incurred in the course of your duties
are an allowable expense, for example visiting a site
from your office. Travel to and from a temporary place
of work is also allowable.
Travel
should normally be by second class rail or standard
class air fares.
TIP:
Buy your tickets with your bank debit card or
credit card so that you have a receipt slip that can
be used to vouch the expense and confirm the journey.
Motor
Expenses
If you use your own car for business motoring, e.g.
visiting sites or home to temporary workplace, then
you may claim an allowable expense of 40p per mile
for the first 10,000 miles and 25p per mile thereafter.
To claim this, you need to maintain a log of your
business journeys which should be written up on a
daily basis. Also, parking costs may be claimed as
can the Congestion Charge in London.
Other
mileage rates are claimable for use of motorcycles
and bicycles.
TIP:
Keep a diary in the car and write your journeys
in it along with the start and finish mileage readings
and any additional costs such as parking (keep the
ticket), etc.
Overnight
Accommodation
If you have to work away from your "normal place of
employment" you may have to use overnight accommodation
such as hotels, etc. An element of common sense is
necessary in these circumstances. Dasa Consultancy
Limited has negotiated agreed overnight rates for
subsistence rates. Please note that two different
rates apply, depending on your proximity to central
London.
If
you stay with friends or family, you may claim expenses
of up to £40 per night but you will need to
provide a receipt.
Subsistence
If you work away from your "normal place of work"
or at a "temporary" workplace, you may claim expenses
in respect of a meal allowance. These amounts can
be substantiated from your time sheet.
TIP:
Remember to claim these expenses when you fill
in your timesheet. It is the easiest time to remember
them.
Entertainment
You must be careful with this. Entertainment can be
an allowable expense but only in certain specific
circumstances. The rules surrounding this area are
very tricky. If you are requested to entertain clients
by the contractor you are working with, you must make
arrangements to claim any expenses in respect of this
directly from the contactor.
Clothing
Protective clothing such as waterproofs, high visibility
clothing, overalls, work boots, etc are allowable
areas of expense if your job necessitates them, for
example for site visits. Also, the cleaning and maintenance
of them is allowable.
Other
clothing, such as business suits, are not allowable
and neither is their upkeep, even if you may not wear
such clothing other than for work.
Training
& Professional Subscriptions
If you are a member of a professional body, you will
incur membership fees, these are an allowable expense
against your taxable income. In addition, most professional
bodies require that their members should undertake
training during the year to maintain their expertise.
As such, subscriptions to professional publications
are an allowable expense. Day or weekend training
courses are usually allowable as well, when clearly
tied into a professional update or perhaps a new piece
of software or hardware.
Events
such as week long "seminars" in exotic locations or
golf days run by suppliers are more likely to be corporate
hospitality events and, as such, not allowable expenses
for tax purposes.
TIP:
Be sensible about this. If you're enjoying it,
it probably isn't a training experience. Usually the
paperwork in respect of an event will clarify its
nature. Make sure you keep supporting documentation.
Telephone
Expenses
Business use of your own phone is also allowable for
business calls. An itemised phone bill is required
to substantiate your claim. The line rental, personal
calls, messaging, etc is not allowable. If your contractor
supplies you with a mobile phone, to better perform
your duties, no benefit arises.
TIP:
Reasonable use of a contractor's phone for personal
calls will not usually create a benefit charge but
check with your contractor first.
Other
Expenses
Most personal expenses are not allowable expenses
for tax purposes. Items such as hairdressing, dentistry,
personal grooming, etc may not be claimed as expenses.
Other sundry items such as the supply of equipment
necessary for you to perform your duties are allowable.
TIP:
If you have any doubts as to the allowability
of an expense, please contact your Account Manager
first to avoid any disappointment or frustration.
The
detailed rules for expense claims are available from
HM Revenue and Customs web site at: http://www.hmrc.gov.uk/guidance/480.pdf
and for travel expenses at: http://www.hmrc.gov.uk/helpsheets/490.pdf
Both
these leaflets are in Adobe pdf format and you will
need to download the Adobe Acrobat Reader from this
site,
if you do not already have it.
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