Because there are many different categories of expense, it can often be confusing which expenses are suitable to claim, and for many people the question of how those claims might affect other financial returns on your work is a confusing one.
The legislation covering expenses is complex and many edge cases and exceptions exist, so we would recommend consulting a professional for anything unusual and for any substantial purchase where claiming or not claiming them will significantly affect your bottom line, rather than risk being wrong.
However, there are some basic guidelines for contractors working under the ICS Umbrella solution.
Mileage
As the name suggests, mileage is calculated based on the number of miles travelled to and from specific site locations, calculated over a week. If travelling by car or van, the first 10,000 business miles travelled in every year can be claimed for 45p each. Afterwards the rate drops to 25p per mile.
Travelling by motorcycle, you can claim a flat rate of 24p, and if you cycle for business, your mileage is also a flat rate, this time of 20p.
The expenses for public transport are more complex and can vary depending on whether season tickets are purchased or if public transport in the relevant area is subsidised or free. As these topics change significantly, we would recommend discussing your specific case with an expert.
Not all workers can claim for expenses, so it is important to check whether you are eligible to do so. This can often depend on what you are claiming for, why and whether you are subject to (or to the right of) supervision, direction and control (SDC). It may also depend on whether the client has agreed to reimburse you for the mileage.
If you think you may be eligible to claim for expenses, get in touch with a member of our team today. We will guide you through whether this is possible and if so, what our processes are for this.
We’ll help make sure you remain in full compliance.
Expenses will only be processed with full supporting documentation of the claim and receipt.
To find out more, please contact us directly.
