Expenses

What you can claim?

Expenses are a legitimate way of decreasing your tax liabilities, providing any claims represent legitimate costs incurred in the performance of your duties.

The tax legislation on expenses is wide ranging and open to differing interpretations by different Tax Inspectors. The guidance given here is based on current legislation as well as our long experience of dealing with both HMRC and the Dutch tax authorities.

If you’re unsure if a cost you have incurred is allowable you can always contact us for advice. You can also download Booklet 490 found under 'leaflets' on the Revenue's website http://www.hmrc.gov.uk/.

Protecting your interests

There may be instances when we query or disallow certain expense claims. This is done with your best interests in mind and to protect you from future investigation - and not because we want to be difficult!

Remember, all claims must meet the fundamental rule that they are wholly, exclusively and necessarily incurred in carrying out the performance of your duties. Claims made that later prove to be either disallowable or taxable may incur further tax, penalties and interest levied by the Dutch and UK tax authorities.

Completing your expense claim forms

Receipts - all claims must be accompanied by a receipt. You should retain the originals and send us photocopies.
Part completed or unsigned claim forms are not acceptable should details of your expenses be requested by a Tax Inspector, they will therefore be returned.
No more than one month's expenses should be claimed on any one form. No expenses will be allowable that are older than two months before the date of submission.
Claim forms should be submitted in sterling. If expense are incurred in currency, they should be exchanged using the relevant exchange rate at the time the expense was incurred.
You can download expense claim forms from our

Expenses Quick Guide

Travel

Travel is allowable where it is clearly for business purposes e.g meetings. Daily travel will only be allowable if HMRC are satisfied that this to/from a temporary and not a "regular place of work" (See Booklet 490 under 'leaflets' on http://www.hmrc.gov.uk/ or contact us for guidance). Other rules may also apply in The Netherlands and these will be advised if applicable.

NB. - Subsistence, Rent, Hotel and Incidentals are only allowable if travel is allowable as above.

Subsistence

You can claim the full amounts involved providing you have receipts. Without receipts a maximum of £5.00 per day is allowable. Any receipt showing restaurant "covers" in excess of one person will have to be reduced proportionately.

Rented Accommodation

If you need to rent accommodation away from your home address or country to carry out your contract, you may be able to claim a proportion of certain items such as rent and utilities. Please contact us for further guidance.

Hotel /B & B

All reasonable costs are allowable, providing you have a permanent residence elsewhere.

Incidentals

Incidentals associated with overnight stays can be claimed at £5.00 per night, providing the item has not been claimed elsewhere.

Telephone - Land line

All business calls made from your home telephone are allowable. A copy of the itemised bill, highlighting business calls, is required.

Telephone - Mobiles

All business calls made from your mobile telephone are allowable. A copy of the itemised bill, highlighting business calls, is required. "Pay as You Go" costs are not allowable.

Entertainment
Entertainment is not allowable

Mileage Allowance (Tax year 2011/2012)

Only business miles are allowable and must be supported by a daily log of journeys (see reverse of the Expense Claim form).

Mileage Rates

Current rates claimable for business mileage

Cars and Vans (Regardless of engine sizes)

First 10,000 miles in tax year : 45p per mile
Each extra mile above 10,000 miles : 25p per mile

Motorcycles : 24p per mile
Bicycles : 20p per mile

Other rules relating to allowable expenses may also apply when working in The Netherlands and these will be advised if applicable.

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