Expenses Policy

Expenses

The Total Umbrella Expense policy is based upon the guidelines and requirements of HMRC (Her Majesty Revenue and Customs) to ensure that expenses submitted are compliant and do not incur any unnecessary tax repayment at the end of the financial year.

Total Umbrella Expense Policy

Business expenses are costs that are incurred by you in order for you to fulfil your contract. If you adhere and follow the Total Umbrella expense policy you can be assured that your expense claim will be valid and comply with HMRC rules.

There are two types of expenses that can be claimed, these are as follows:-

Firstly, billable expenses as shown above will be reimbursed to you tax free as agreed through your agency.

Secondly, non-billable expenses are incurred by you whilst fulfilling the duties of your contract e.g. travel, congestion and parking charges. These are not reimbursed to you. These expenses are funded from earnings received from your assignments only. We have listed below suggested expenses that you may incur and comply with the tax rulings governed by HMRC:-

Mileage

Records of travel must be kept as receipts are not required when you claim business related mileage when you travel to and from your temporary place of work. These mileage rates incorporate an allowance for fuel and maintenance costs of the vehicle you use.
The following mileage rates can be claimed:-

Travel

Travel costs in relation to rail, bus and air, congestion, toll and parking charges are claimable where receipts are provided, again when travelling to and from your temporary place of work.

Subsistence

Day Subsistence (meal costs incurred whilst working at a temporary place of work)

Breakfast £5.00 can be claimed if you leave home before 7am.
Lunch £6.00 can be claimed if you work over 5 hours a day.
Dinner £15.00 can be claimed if your work over 10 hours a day 

If you travel in excess of 2 hours this qualifies you to a long journey break at £2.50 per hour.

Overnight Subsistence (meal costs incurred whilst staying away from home)
Bed and Breakfast £21.00 can be claimed.
Room Only £26.00 can be claimed.

Accommodation 

Receipts are required for all accommodation expenses whether this be the cost of a hotel or bed and breakfast but remember when claiming these expenses they must be at an acceptable level of cost.

Renting accommodation (including the costs for gas, electricity, council tax) close to your temporary place of work can be reclaimed only if you continue to pay for a main residence elsewhere in the UK which you return to on a frequent basis e.g. every weekend. If you do not return to your main residence then you can only claim 5 out of the 7 nights for each week. Again receipts for the payment of rent must be submitted with each expense claim.

Renting accommodation where family members are present is not claimable. When you stay with friends or family you can claim £25.00 per night. You will however need to obtain a receipt with the name, address and with whom you stayed.

Personal Incidental Expenses

You can claim £5 per day only if you are staying away from home. This is to cover expenses that you incur such as laundry, personal telephone calls and newspapers etc.

Entertainment

Claiming expenses for business entertainment can be somewhat onerous. You will need to ascertain or understand why you are entertaining and whether it is a legitimate business cost. You will need to identify on your expense claim who is being entertained, the purpose of the entertainment, the place and produce a receipt. 

Telephone 

Identified and itemised business calls from home, a personal mobile can be claimed. Please note that a copy of your telephone bill with the relevant business calls clearly highlighted is required when submitting your claim.

Tools and Clothing

Protective clothing and tools that are required for you to carry out your duties while fulfilling a contract can be claimed with receipts when submitting an expense claim.

Subscriptions

A list of allowable professional subscriptions are available but recommend that you go to the following link http://www.hmrc.gov.uk/list3/list3.htm 

Office consumables and stationery

Again acceptable limits of office stationery, postage and consumables which are wholly used in the performance of your duties can be claimed on production of receipts.

Training

Training courses that are undertaken will need to be relevant in assisting your performance of your current role and duties. In order to verify whether the training course you are about to engage in is a viable expense, please contact Total Umbrella Services Ltd.

If you have any queries in relation to what expenses can be claimed then please do not hesitate to contact us.