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Accounting Freedom are dynamic, forward thinking accountants providing clients across the country with a range of professional services.

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Expenses Explained

Perhaps the biggest advantage that you have, being a contractor, is being able to claim tax-free expenses. This greatly reduces the amount of tax and national insurance that you pay and putting more money in your pocket.

You will probably incur genuine business expenses as you perform your duties as a contractor. By using the services of Accounting Freedom you will be able to claim tax relief on these expenses. Make the most out of contracting by claiming genuine expenses. It will make a great deal of difference to the amount that you get paid each week.

Make sure you claim what is rightfully yours.

How much can you claim?

There's no limit as to how much you can claim, except that:

  • your expenses must be incurred solely and exclusively when performing your duties and
  • your gross taxable pay does not fall below the National Minimum Wage

Note that tax free expenses are not paid to you as an extra payment over and above the amount received from your agency. We simply offset them against your gross pay and, in doing so, reduce the amount of tax and national insurance that you pay. The result is more take home pay.

Again, simplicity works

It could not be easier to claim expenses through Accounting Freedom.

You simply collect your receipts and log them on to our expenses sheet and e-mail it back to us. The expenses will then be processed and used on your next payroll. In addition, if you join Accounting Freedom's Umbrella scheme, you will have access to our new online members area designed to cater for all your Umbrella needs. In the members area you can submit your hours, expenses and mileage details using our improved online timesheet form. You can also download files and documents relevant to your employment and member status.

It is your responsibility to keep any receipts that you use to make a claim as the Inland Revenue may ask to see them. You must be able to produce them should that happen.

Remember:

Green Tick SymbolWe do not charge for processing your expenses
Green Tick SymbolIt is your right to claim for them so use it
Green Tick SymbolReduce the amount of tax and national insurance that you pay
Green Tick SymbolTake more money home

What you can claim:

The following expenses can be claimed when travelling to a temporary workplace.

1. Mileage - incurred when using private cars on company business may be claimed at the following rates:

Cars:

- 45p per mile for the first 10,000 miles
- 25p per mile excess over 10,000 miles

Motorcycles: - 24p per mile
Bicycles: - 20p per mile

2. Travel - plane, bus, tube, taxi, etc - You should use only the most cost effective form of transport available.

3. Overseas travel - must be converted to sterling showing the exchange rate and the corresponding sterling amount in each receipt.

4. Parking and toll

5. Food and drink - with receipts - daily lunch can be claimed. You can also claim for breakfast if leaving home before 7.00 am and a evening meal if working late.

6. Accommodation - with receipts - if staying overnight near your temporary work place at a B&B or hotel.

7. Staying with Friends or family - You can claim £25 per night without receipts.

8. PIE's - Personal Incidental Expenses - without receipts £5 per night in the UK or £10 per night if abroad can be claimed to cover things like laundry, magazines, etc.

9. Professional Training - If the training is relevant to your current contract the full cost can be claimed.

10. Professional Subscriptions - if you need to subscribe to a professional body because of your contract, the cost of these subscriptions can be claimed.

11. Telephone - if you are required to use your own mobile or home phone to make genuine business calls you can claim for the cost of them. You will need to provide supporting evidence in the form of the front page of the bill plus the pages containing the bill details with all business calls highlighted.

12. Internet Access - If you use your personal internet access mainly for your contract the full cost can be claimed.

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Fax back : 0871 661 7134

Or call us on 0845 257 6692

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