Hi my names Alex and I work for Danbro accounting solutions for contractors as part of the marketing team. We specialise in providing quality advice and tailoring solutions to meet the need of the contractor. Danbro have been providing accounting solutions for contractors all over the UK for over 10 years and have now become one of the fastest growing companies in the UK.

In this article I will be giving a brief overview about what expenses a contractor is allowed to claim for. All expenses claimed by a contractor must be wholly, necessarily and exclusively required for them to perform their duties.

What can be claimed?

Contractors can claim expenses for the costs they incur as a result of the work they do. Some of these can be claimed before taxes are applied i.e. they are ‘tax deductable’. The expenses you claim also depend upon whether you are caught by IR35 or not. For more information on what IR35 is see my article IR35 for Dummies

Typical expenses contractors can claim-

1. Travel expenses (Parking fines)

2. Motor expenses (mileage claims if the car is personally owned).

3. Accommodation and subsistence (Must be reasonable)

4. Telephone and business calls only (mobile, phone, broadband)

5. Professional Subscriptions.

6. Bank charges and interest – on your company bank account.

7. Pension scheme – where paid by the company to a HMRC approved scheme.

8. Business insurances – professional indemnity, business contents and other business related insurances.

9. Eye Tests etc.

10. VAT on expenses if your company is VAT registered.

11. Training courses if directly related to your work.

12. Computer costs.

13. Accountancy costs - if using a Limited Company.

Do contractors have to provide receipts?

If the umbrella company you are using such as Danbro have dispensation, certain expenses won’t require receipts however it is essential that others do. At Danbro we still recommend that contractors keep hold of receipts even if the umbrella company does not require them, as HMRC can still request for evidence to ensure expense claims are genuine.

If you have any doubts on what you can claim for it’s always best to speak to an accountant or seek professional advice. For more information on claiming expenses see Umbrella Company – Expenses Policy

For further details, please contact Danbro: 01253 600141,

General Enquiries: 01253 600140,

London Office: 020 7836 8400 or

Email enquiries@danbro.co.uk

Umbrella Company