Maximum Expenses Allowed?

[techi_girly]

Hi All, I am very confused and was hoping someone would be able to clarify a few things for me. I'm due to start a new contract in a few weeks, I have been a contractor before and used Mantor Umbrella which have been great but have been looking into a few umbrella companies as I am looking to claim childcare vouchers. I have provided each company with the same details, hrs, wages and expenses and each company have told me different things. Apparently I cannot claim expenses even if I have incurred them? 1 company told me the max I can claim is £66 pw, another £90 and another £132??

I will be working 32 hrs a week across 4 days at £11 ph, I will be travelling £88 miles pw, paying £7 per day car parking and leaving at 7:15am and getting home around 6:30pm. I was under the impression I could therefore claim £10 per day subsitance (I will keep meal reciepts)

My calculations are £102.20 per week expenses. All of which are incurred. Does anyone know why would I then be told I cannot claim this amount by some companies but others saying I can? Its so confusing!

Also I am entiltiled to £55 per week childcare vouchers which I was under the impression could b purchased as a salary sacrifice so my £55 per week would be deducted from my gross pay however each company has told be that I would not be better off claiming this as I cannot claim these and the expenses.

Sorry for such a long thread Im just so confused, I want to claim all incurred expenses but also am being told different things from each company and at a loss to what is legal and what isnt. Any help would be greatly apprecaited.

Thanks

[northernladuk]

It's very interesting to see that the term 'childcare' in the accounts thread on the search returns over 27 results.. Now there is a surprise!!

I would hate to think how many threads would appear should you try a search for terms such as subsistence and expenses!!!!

[LisaContractorUmbrella]

You may have been told that you cannot claim certain expenses because the umbrella company you contacted does not have a dispensation covering those expenses. This would mean that the umbrella company would have to file those claims at the end of the financial year and provide receipts for HMR&C which some smaller companies are not prepared to do.

I can think of no other reason why you could not claim a legitimately incurred expense i.e. a cost incurred wholly and exclusively because of the contract. You should just be aware that you will need to keep receipts.

HTH

[Brussels Slumdog]

What my umbrella allows

I will be working 32 hrs a week across 4 days at £11 ph, I will be travelling £88 miles pw, paying £7 per day car parking and leaving at 7:15am and getting home around 6:30pm. I was under the impression I could therefore claim £10 per day subsitance (I will keep meal reciepts)

My calculations are £102.20 per week expenses. All of which are incurred. Does anyone know why would I then be told I cannot claim this amount by some companies but others saying I can? Its so confusing!


Thanks

Here is an extract from the Umbrella company that I use.

Provided you meet the HMRC temporary work place rules, XXXXXXXX is able to accept receipted expenses covering all the main areas of contractors' expenses: travel, accommodation and subsistence at a temporary work site.
For example:
Travel to and from a temporary work site (receipts required)
Travel includes business mileage, trains, taxis, buses and planes. Mileage is claimable at the HMRC approved rates: 40p per mile up to 10,000 miles and 25p thereafter per tax year (fuel receipts required)
Parking (receipts required)
Food / subsistence when at the temporary work site (receipts required)

[MarkOD]

Lisa tends to be the expert on these sort of things working for an umbrella company. Obviously childcare is a big thing for you so just make sure the Umbrella you look at is able to offer this for you. I know Crystal Umbrella do without trying to soud like i'm bigging them up! there are a couple of others that do it also i believe. If you've incurred the cost for the purpose of the contract which you clearly have there's no reason you can't offset this as an expense

HTH

[TheFaQQer]

You can claim what you employer allows you to claim. If one umbrella says no, then find another one that will allow it.

Of course, that doesn't mean that it won't be classed as a benefit in kind and you'll pay tax on that as if you had earned the money and spent it yourself.

(and as ever - if you don't incur the expense, don't claim it)

[original PM]

£11 *32 = £352

Remove their fee £20? (you did not say)
Remvoe employers NI approx £30

This leaves £302

Minimum wage (what is it now about £5.70 per hour?)

so 32 hours at minimum wage is £182

take into account take an NI on the £182 which will be about £30?

this leaves about £90 which can be taken as salary or as expenses (including childcare vouchers)

Obviously calcs are a bit rough but it should give you an idea of why you can get what you can get.

[techi_girly]

£11 *32 = £352

Remove their fee £20? (you did not say)
Remvoe employers NI approx £30

This leaves £302

Minimum wage (what is it now about £5.70 per hour?)

so 32 hours at minimum wage is £182

take into account take an NI on the £182 which will be about £30?

this leaves about £90 which can be taken as salary or as expenses (including childcare vouchers)

Obviously calcs are a bit rough but it should give you an idea of why you can get what you can get.

Thanks for the info, I'm going to try and get them to clarify this as its really be confusing me.

The company I been using for my previous contracts doesnt deduct the expenses from the gross, they add them to the gross then deduct them at the end, this apparently results in paying less tax, not sure whether that is the case though?.

If expenses are to be deducted I figure I could claim

£55 would be a salary sacrifice so gross salary would be £297 - £103.20 (expenses) and £20 (fee) that would make the gross income £173.80 / 32 =£5.43 ph - below minimum wage

Whereas

£297 gross after salary sacrifice - minimum wage is £5.80 *32 = £185.60 so I think the maximum expenses I can claim is £111.40 No one has given me this calculation though so I've prob got it completly wrong....