What Expenses Can A Contractor Claim?

Accommodation There are several categories for submitting accommodation costs and here’s how they all stack up: • All accommodation (hotels and B&B’s) must be accompanied by an original receipt • If you’re claiming accommodation rental costs, your rental agreement must be made under the name of your business and must be the original signed copy. It must also meet HMRC Dual Purpose rules, which means you’re already maintaining a property and are renting a second property for the purpose of your contract • You may be able to make a claim for staying with friends or family while at a temporary work place. Travel You can claim rail, bus, taxi and air travel as well as other travel-related costs such as tolls, tunnel fees and congestion charges, subject to the general travel rules explained at the bottom of this document. Parking charges Parking can be claimed as long as an original receipt detailing the date and cost is available for each amount. Training and tuition Any training or tuition to do with your current trade can be claimed. Training is treated like any other deductible business expense; it must be ‘wholly, exclusively and necessarily’ in the performance of duties. It must also be directly linked to existing income, if not then it cannot be treated as a deductible expense through your limited company. Manuals and text books A reasonable amount may be claimed for the cost of manuals and text books required for business purposes where receipts are provided. Eye sight tests An eye test may be claimed for as long as a receipt is provided. The cost of spectacles may be claimed if they are prescribed for VDU use only. This will need to be confirmed on the receipt from the optician. Computers and other office equipment The cost of hardware, software and other office equipment essential to your business can be claimed. There’s no limit to the amount that can be claimed. Postage Office consumables Any office consumables (printer ink, pens, etc) and stationery you use for business may be claimed. This total cost must be for a reasonable amount and you’ll need original receipts to validate your claim. Telephone Itemised business calls from home or a personal mobile phone are fully claimable, while unfortunately private calls or line rental costs are not. To claim business calls a copy of your itemised telephone bill must be kept. Internet subscriptions cannot be claimed. If the telephone/internet contract is taken in the company name the full cost of the line rental/call charges can be claimed. Advertising/marketing Costs of advertising your business is an allowable expense, so for example online search engine listings, telephone directories or even sponsorship of a local team. Childcare Up to £55 per week, per employee, paid to a registered childcare provider can be claimed through your company. Bicycle You could claim for the cost of a bicycle through the Cycle to Work scheme. Charitable donations Donations to a UK registered, HMRC approved, charity are allowable. Use of home as office In 2012 a fixed rate of £4 a week was announced as an acceptable flat rate claim for general costs associated with the use of home as office, and it was confirmed that no detailed expense claim needs to be prepared to justify such an amount. Staff entertaining The cost of an annual staff function can be claimed through your company. This should be supported by receipts and it’s important that the receipts for this expense do not exceed £150 per employee. Pension contributions Pension contributions made by an employer on behalf of its employees are an allowable expense. I Life insurance You can save tax by paying for some life insurance policies through your limited company. NOTE INFORMATION HERE IS SUBJECT TO CHANGE DEPENDING ON ALLOWABLE EXPENSES, ALSO ADVICE SHOULD BE TAKEN FROM A PROFESSIONAL ACCOUNTANT- IF YOU NEED A REFEERAL TWEET ME @procuretweets and send me a direct message with your name and I will send you details of the company I use.