A Guide to Expenses

What, how and when you may be able to claim

Depending on the way in which you work, you may be entitled to claim allowable expenses that have been incurred wholly, necessarily and exclusively for the purpose of your assignment.


To find out more, select the button below that relates to the solution you work through.

1. Supervision, Direction or Control

2. Multi-Site Worker

If you're unsure which solution you work through please contact your payroll team who will be happy to help.

1. Working under Supervision, Direction or Control

Under supervision, direction or control the only expenses you can claim, and have offset through your pay, are Chargeable Expenses. These are expenses your agency has agreed to reimburse and are sometimes also referred to as billable expenses.


Chargeable Expenses can be offset against Tax and National Insurance (NI) providing:

They are allowable (non-commuter expenses incurred wholly, necessarily and exclusively for the purposes of your assignment)

There’s a written claim

You can provide evidence of the expense in the form of receipts

We have confirmation that your agency are reimbursing you for the expenses

If you are claiming mileage, you must provide full details of your vehicle which can be done on your portal or via your payroll team; every time you submit a claim, you must provide VAT receipts for the fuel used

How to claim through us

Claims should be submitted through your online portal. We can only process claims which are supported with receipts showing clearly:

  • the date of the expense
  • a VAT breakdown

IMPORTANT NOTE


Even if you have already been through this process with your recruitment agency we will still need you to submit your claim with receipts to allow us to offset it against Tax and National Insurance.


When we process a claim for Chargeable Expenses, a charge of £5 will be made to cover the cost of verifying and processing your claim. This will show on your payslip as a deduction from your net pay.

Non-commuter business mileage - how much can you claim?

Own Vehicle

Conditions

Rate (per mile)

45p

First 10,000 miles in a year

Car or Van

Over 10,000 miles in the same year

25p

At the start of the tax year your mileage resets to zero

Any amount of mileage

Motorcycle

24p

Bicycle

Any amount of mileage

20p

How to claim through HMRC

You may be able to claim allowable, non-commuter expenses from HMRC if you don’t have them offset through your pay.


These may include:

  • Accommodation
  • Subsistence (food & drink)
  • Travel costs including parking, tolls etc.
  • Professional fees and subscriptions
  • Computer hardware
  • Incidental expenses


You can claim at any point in the tax year, using a P87 form as long as your claim is less than £2500, or at the end of the tax year using a Self-Assessment Tax Return.

Please note that you will need to retain your receipts as evidence of the expense.

If you have any questions about the contents of this guide, please contact your Payroll Team, who will be happy to help.

2. Multi-Site Workers

As a multi-site worker, there are some allowable expenses that you're able to claim, providing that they are legitimate, meaning that you have incurred a cost, and they were incurred wholly, necessarily and exclusively for the purpose of your assignment.


It's important to remember that 'regular commuting' - travelling from home to your workplace and back - is not an allowable expense.

Claiming weekly or monthly with your pay

You're able to claim for business mileage throughout the year, on a weekly or monthly basis, with your pay. These claims can be made using your online portal..

What you can claim:

Own Vehicle

Conditions

Rate (per mile)

45p

First 10,000 miles in a year

Car or Van

Over 10,000 miles in the same year

25p

At the start of the tax year your mileage resets to zero

Any amount of mileage

Motorcycle

24p

Bicycle

Any amount of mileage

20p

So that we can verify and approve your claims, here's what you'll need to provide:

Journey Details

To help us determine which journeys you can claim for, we’ll need to verify the route you’ve taken. To do this we will need you to provide us with the following information for every journey:

  • postcodes
  • the reason for your journey

Your online portal will automatically calculate your mileage using your postcodes. This sometimes means that the mileage you claim and the mileage we allow can vary slightly if you use a different route planner.


If there’s a difference, we’ll resolve this in agreement with you.

Vehicle Details

We need the following information about your vehicle:

  • make
  • model
  • fuel type
  • engine size
  • registration number

You can add these details yourself when you set up your account. The same information must be provided for any new or additional cars you use.


Before you submit your expenses you'll be asked to confirm that the vehicle has a valid MOT and tax where applicable, and that you’re fully insured for business purposes.

VAT Receipts

Every time you submit a mileage claim you must provide VAT receipts for the fuel used. These can be uploaded to your portal or emailed to us.


The receipts must be sufficient to cover the miles you claim and depends on the engine size of your vehicle.


We would advise that you send us your fuel receipt every time you fill up your vehicle.


The receipt must clearly show the date, type of fuel and amount of the purchase

Chargeable Expenses

Chargeable Expenses are expenses your agency has agreed to reimburse and are sometimes also referred to as billable expenses.

Chargeable Expenses can be offset against Tax and National Insurance (NI) providing:

They are allowable (non-commuter expenses incurred wholly, necessarily and exclusively for the purposes of your assignment)

There’s a written claim

You can provide evidence of the expense in the form of receipts

We have confirmation that your agency are reimbursing you for the expenses

If you are claiming mileage, you must provide full details of your vehicle which can be done on your portal or via your payroll team; every time you submit a claim, you must provide VAT receipts for the fuel used

How to claim Chargeable Expenses

Claims should be submitted through your online portal. We can only process claims which are supported with receipts showing clearly:

  • the date of the expense
  • a VAT breakdown

IMPORTANT NOTE


Even if you have already been through this process with your recruitment agency we will still need you to submit your claim with receipts to allow us to offset it against Tax and National Insurance.


When we process a claim for Chargeable Expenses, a charge of £5 will be made to cover the cost of verifying and processing your claim. This will show on your payslip as a deduction from your net pay.

Claiming expenses through HMRC

These are some expenses which you may be able to claim through HMRC at the end of the Tax Year. You must, however, retain receipts as evidence of these expenses.


These expenses you may claim are:

  • Accommodation
  • Subsistence (food & drink)
  • Travel costs including parking, tolls etc.
  • Professional fees and subscriptions
  • Computer hardware
  • Incidental expenses

There are two ways in which you can make a claim through HMRC:

This is a form available from HMRC, which is free of charge and can be used for claims that

are less than £2500.


You can submit a P87 yourself at any time either online or by post.

Option 1.P87

You can submit your claim in this way for any amount but if your claim is over £2500 you can only use this method. 


As a Danbro employee you can benefit from a discounted Self-Assessment Tax Return with our team of qualified accountants, if you’d like to know more, speak to a member your team.

Option 2.Self-Assessment Tax Return

If you have any questions about the contents of this guide, please contact your Payroll Team, who will be happy to help.

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