Guide to claiming expenses
Following amendments to the general expenses rule from 6 April 2016 any expense must not be part of a relevant sacrifice arrangement, this means the expense claim should:
Not reduce the contractor’s taxable employment income.
Be reimbursed in addition to an agreed rate, or
Reimbursed out of a separately identified expense allowance.
With further introduction of Optional Remuneration Arrangements (opra) on 6th April 2017, a contractor cannot give up income in exchange of benefits, meaning any expense claim that reduces the contractors taxable income will be caught under the changes and will be disallowed by HMRC. The only exception to this is mileage where the contractor is working multi-site or expenses reimbursed by the agency in addition to the normal pay. For claiming any expense, we will require a completed expense claim form and it should pass the wholly, exclusively and necessarily test.
Expense claim can be a complicated matter and is discussed with you as part of the joining process. To know more please contact our team on 02035002615 or email us firstname.lastname@example.org