LIMITED COMPANY CONTRACTOR EXPENSES LICENSE

Although your overnight stay may have only cost £70, your employer can reimburse you at the rate of £80. For example, a dispensation might say that an overnight stay can be reimbursed at the rate of £80 without the need for a receipt.

LIMITED COMPANY CONTRACTOR EXPENSES LICENSE

It is intended to reduce administration costs for the employer it is not a license to claim for expenses that have not been incurred. More from our Contractor Expenses Guide Dispensations – What is an Expenses Dispensation?Ī dispensation allows an employer to reimburse certain expenses without the need for the employee to submit receipts. Therefore if you have worked at a client site for 8 months and then sign a contract for 18 months, then you cannot claim any further expenses from the date that you sign that contract. You fall foul of this clause as soon as you sign a contract that would take you over the 2 year period. Expenses which may have a personal element.Entertaining which is not tax deductible.

Please refer to our Dispensation section for details of how a dispensation should be applied. This may seem obvious but some companies suggest that you can claim expenses under their dispensation without having incurred any cost. Any expense that you have not incurred.Any travel or subsistence claim relating to travel to a client site where you have spent at least 40% of your time within a 2 year period.What Expenses can you not claim as a contractor? Other expenses may be possible and should be discussed with your tax adviser.HMRC would expect that you live far enough away from your client site to justify such an expense. Overnight accommodation, i.e., hotel or B& B where it is necessary for you to stay over.HMRC generally require that your client site must be a minimum distance from your home, for example, 5 miles. Daily subsistence whilst at your client site.

Travel to and from home to your client site including mileage and/or public transport.If you are looking at contracting through a contractor limited company, have a look at the below contractor expenses guide to find out what you can and cannot claim as a contractor What Expenses can you claim as a contractor?

Limited company contractor expenses