UK Expenses and Tax Allowances

 

UK Expenses And Tax Allowances
Allowable business expenses are treated in two different ways:
  • Billable (or claimable, or rechargeable) - agreed with your agency or end client, they are invoiced together with your timesheet and get reimbursed
  • Non-Billable (or Schedule E) – paid by you out-of-pocket, which are claimed to reduce your tax and National Insurance liabilities
Allowable business expenses, incurred wholly and exclusively in the performance of business duties (more details at http://www.hmrc.gov.uk/helpsheets/hs207.pdf), and always supported by valid receipts, include:
  • Subsistence
    • Up to £5 per day if you work more than 5 hours (excluding travel)
    • Up to £15 per day if you work more than 10 hours (including travel)
    • Up to £21 per day if you work more than 10 hours (including travel) and you are staying in a hotel
  • Rail, bus, taxi and air travel
    • At cost indicated in receipts. For full details see the HMRC Helpsheet 490 at http://www.hmrc.gov.uk/helpsheets/490.pdf

Vehicle type
Pence/mile
(below 10,000 miles/year)
(above 10,000 miles/year)
Bicycle
20
20
Motorcycle
24
24
Car
40
25

 
In addition, fuel VAT receipts are required for every 100 miles covered, as follows:

Engine size
Fuel type
Petrol
Diesel
LPG
Up to 1,400 cc
£10.00
£9.00
£7.00
1,401 to 2,000 cc
£12.00
£9.00
£8.00
Over 2,000 cc
£16.00
£13.00
£10.00

  • Accommodation

    • Overnight stay in hotel or B&B: only cost of room and breakfast can be claimed
       

  • Landline and mobile phones

    • Clearly identified business calls in the phone bill
    • Equipment and line rental costs can be claimed only if the line is separate from your personal one and used exclusively for business purposes
       

  • Professional accounting and legal costs

  • Trade books and publications
  • Membership of professional organisations
    •  As approved and defined by HMRC. Please see http://www.hmrc.gov.uk/list3/list3.pdf
  • Training and seminars
  • Consumables, stationery and postage

 

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