"Umbrella companies that ask their contractors to keep receipts are providing absolutely the right advice. However, as Hill warns: “Some umbrella companies, and their representatives, have been known to tell contractors that receipts are unnecessary. That is not the case, and HMRC requires that contractors keep receipts or, where these are not available, detailed records of what for, when, where, how and why the expenses were incurred.”

John Hill, John Hill Associates

 

Expenses:

 

We are often asked "what can we claim?"


The guidlines from HMRC are:

“Only expenses that are incurred wholly, necessarily and exclusively in the performance of duties can be claimed against earned income"

 

At Maxim we have a documented expense policy, that you can download here. this details how our company deals with creating a claim that will allways pass inspection. Generally as we operate an asset finance business as well, we can provide funding for other items that are to do with work and can be claimed. It is always best to call us if you believe that something that you need for work is a justified claimable expense, (we'll ask Inland Revenue for an answer).

 

These are some examples of what can be claimed.

  • Subsistence (food and drink) costs incurred when working at a temporary workplace
  • Mileage (for a car), at 45p per mile for the first 10,000 miles and 25p per mile thereafter
  • Rail, bus, taxi, car hire and air travel to and from the temporary place of work, or on solely business travel, such as to attend meetings
  • Parking and other travel expenses, can include tolls and congestion charges, but not parking fines
  • Accommodation, such as the cost of a hotel or bed and breakfast for overnight stays and, in some cases, the rental cost of a property used by a contractor on working days
  • Professional subscriptions, but only those included on the approved list created and maintained by HMRC
  • Work-related training, where the training is directly related to the kind of work performed by the contractor, and related costs such as travel and subsistence when attending the training
  • Eyesight tests, where it is necessary for the contractor to use, or continue to use, visual display equipment, such as PC monitors
  • ‘Sundry expenses’, which could include items such as personal protection equipment for engineering contractors, replacement hand tools, or hardware and software where personal use is incidental.

 

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