Expense Claims Explained
One of the main questions that is asked when using an umbrella company is “what expenses am I allowed to claim?”. This is an important question and with the support of the Brolii team we can guide you to ensure that all expense claims that are submitted are compliant and legitimate.
There are two different types of expenses. Your day to day business expenses and rechargeable expenses. Both are described below.
“Day-to-day” business expenses
These expenses are the daily cost of you doing business while you are on an assignment. They are processed along with your PAYE and are not subject to tax and national insurance.
If the expenses are allowable, they will be deducted from your earnings and the tax & national insurance calculated on the remainder. This means you get to keep more of what you earn.
You may only claim a business expense if it has been incurred 100% as a result of your work on a contract and you could not fulfil your contract without incurring the expense.
These expenses are agreed expenses that you can claim back from your agency or end client. There are no defined expenses that you can claim. The rechargeable expenses that you are able to claim will be defined in your contractual agreement between you and the agency/end client.
Rechargeable expenses are not subject to tax and national insurance and will be reimbursed to you in full by the agency/end client.
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