Chargeable Expenses

If your client has contractually agreed in advance to pay for specific expense types incurred whilst carrying out your contract duties, they will reimburse you.  Whilst you will not receive tax relief on these amounts the reimbursement will mean you are not out of pocket. Typically, these expense claims are added to or along with regular timesheets.

Expense Allowance

Your client may at their discretion provide an expense allowance. Your umbrella company should check your receipts to confirm the actual costs that have been incurred.

If you can only produce receipts for part of the allocated allowance the difference should be added to your other earnings when they calculate your PAYE tax and NICs.

Any Other Expenses

You may need to claim tax relief on most expenses at the end of the tax year by submitting a form P87 to HMRC or submitting the claim via the Self Assessment process.

To find out how to claim tax relief on money you’ve spent on things like work uniform and clothing, tools, business travel, professional fees and subscriptions follow this link:

https://www.gov.uk/guidance/claim-income-tax-relief-for-your-employment-expenses-p87