Sign up on-line -
it's easy and risk free...

We'll call you back...

Email us...

or call at local rate

Contractors

Allowable Expenses

ALLOWABLE EXPENSES

We have secured special dispensation from the inland revenue approving the payment of the following types of expenditure assuming they are incurred wholly and exclusively in the performance of your chargeable work.

The overriding rule applying to the following expenses are they are not allowable if you work longer than two years at the same location. In fact, as soon as you know you will be working more than two years at the same location, the expenses become disallowable.

In addition, receipts must be produced for all expenses including mileage.

Mileage

Mileage can generally be claimed to and from your place of work.

The following mileage rates can be claimed:

Rail, Bus and Air Travel

Rail, bus and air travel to and from your place of work is allowable.

Parking Charges

Car parking including parking meters are claimable.

Congestion Charging

You will be able to claim congestion charges, although the days claimed must relate specifically to days worked at the client site.

Accommodation

Bed and breakfast costs up to £95 per night (depending on location) can be claimed as well as £5 incidental costs (which do not require a receipt).

The following expenses are not subject to the two year rule:

Telephone (Landline and Mobile)

Business calls may be claimed. They must me identified on your telephone bill (no rental costs or private calls are claimable).

Office Supplies

Reasonable amounts (around £35 per month) for office supplies are claimable. This will normally be stationery, postage and other consumables and receipts will always be required.

Professional Subscriptions

Certain costs of professional subscriptions are allowable expenditure.

Technical Publications

Assuming receipts are supplied, technical publications are reclaimable.

Eyesight Tests

If you use visual display units during the course of your work you will be able to claim £15 towards the cost of an eye test. This must be carried out by a qualified optician.

Training

Broadly speaking work related training is allowable. Work related training is that which is designed to impart, instil, improve or reinforce any knowledge, skills or personal qualities which are useful to you as a contractor, or will better qualify you to undertake the assignment.

Computer Hardware and Software

Computer hardware and software expenditure (up to a maximum of £500) is allowable where it can be proved it is essential to your role.

If in any doubt about expenditure incurred during the course of your assignments always obtain a receipt. It is far better to have a receipt that turns out to be rejected as disallowable, than to find out expenditure you incurred is allowable but not claimable due to the lack of supporting documentation.