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Allowable umbrella company expenses are listed below while the qualifying conditions are explained in the qualifying expense claims page.
Travel
Car Rental
Parking
Toll Fees and Congestion Charge
Air Travel
Taxis
Travel Abroad
Travel Related Expenses
Accommodation, Meals and Subsistence
Day Subsistence
Rental Properties
Staying with Friends and Family
Personal Incidental Expenses (PIES) Allowance
Other Expenses
Telephone and Internet
Professional Subscriptions
Out of Pocket Expenses
Use of Home
Equipment
Training
Only qualifying travel expenses are allowable - see Appendix I in the qualifying expense claims section. Provided your journey qualifies you may claim the following:
Contractors using personal vehicles when travelling for business will be able to calculate a mileage cost on which they can claim tax-relief at the following rates in the tax year:
You can claim tax-relief against reasonable car rental costs where a hire car is required to travel on business journeys only. Contractors wishing to extend their car hire periods to cover additional days when no longer on business, should note that they will not be able to claim for the additional hire fees. Top
In car parks and metered car parking, contractors can claim tax relief on expenses arising from actual parking charges in association with business travel. Top
Can be claimed subject to the travel qualifying as a ‘business journey'. Top
Contractors are expected to accept the lowest available airfare as determined by the supplier for the class of travel to which they are eligible. Excess baggage charges are only allowable if the contractor is required to carry substantial business material. Top
Taxi charges can be claimed where alternatives are not available or impractical. Top
Claims that arise from travel abroad must be converted into sterling showing the exchange rate and the sterling equivalent on each receipt. Top
Provided the qualifying travel expense rules are met, the following expenses may also be claimed. Top
Hotels and other accommodation costs may only be claimed at/near a temporary workplace and never near a permanent workplace. Employees can claim reasonable meal and accommodation costs incurred whilst on company business, supported by the relevant receipts. Top
For meals, drinks and associated taxes and service charges when ‘working away from home' on the same basis as travelling costs. Actual costs must be claimed. Top
Where a property is rented in addition to a permanent residence maintained elsewhere and the rental property is required for business purposes. Only the business use element can be claimed. Top
When an overnight stay is necessary in the performance of duties but an employee is able to stay with friends or family rather than at a hotel, any reasonable payment made to the host for the cost of accommodation and meals (say up to £25 per night) may be claimed. A receipt from the host must be produced and the income received is taxable on the host (albeit subject to tax relief under the rent a room scheme). Top
An allowance of £5 per night in the UK and £10 per night overseas can be claimed to cover the costs of personal incidental expenses (No receipts are required, provided the overnight accommodations itself is receipted). These are examples of the kind of expenses which may fall in this category.
Home
Some contractors will be required to use their home telephones for business calls. The full cost (including VAT) of the business calls including internet access may be claimed. Claims must be supported by:
Mobile
Some contractors will be required to use a private mobile telephone in the performance of duties. The full cost (including VAT) of the business calls including internet access may be claimed. Claims must be supported by:
Internet access can only be claimed where there is no non-business use. Top
Contractors may claim tax-relief against professional subscription costs if they belong to professional bodies where the membership is necessary for the better performance of the individual's duties. Top
Out of pocket expenses incurred in the performance of the contractor's duties such as postage, stationery, printing and trade journals may also be claimed. Top
This can only be claimed where a contractor's home is a workplace and must relate to the proportion of home costs specifically relating to that part of the home used for business purposes. Since it may be difficult to calculate the exact amount of the allowable costs that you have incurred as a result of working at home you may, provided you satisfy the conditions for relief, claim £3 for each week that you are required to work at home, without having to justify that figure. Contractors who wish to deduct more than £3 per week will be expected to keep records and to be able to show how their figure has been calculated. TOP
Small items of equipment, including computer software, are allowable provided they are not categorised as fixed assets. As a general rule, individual items costing less than £200 will qualify where they are used for business purposes. Top
Work related training courses can be claimed. The course needs to impart, instil, improve or reinforce any knowledge, skills or personal qualities which are likely to prove useful in performing your duties or will better qualify you in the employment. Top
The following expenses are never allowable