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Overseas Expenses

What can you 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 tax authorities.

Protecting your interests.

There may be occasions when we query, or disallow certain expense claims. This is done with your best interests in mind and to save you from future investigation. It’s not because we want to be difficult, that’s the other Umbrella Companies you’re thinking of!

Remember that all claims must meet the fundamental rule that they were wholly, exclusively and necessarily incurred whilst carrying out your work duties. Also, please note that claims that are made at a much later date often prove to be either disallowable or taxable. They are also liable to incur further tax, penalties and/or interest levied by overseas and UK tax authorities.

In certain cases, penalties can be as high as 100% of the tax payable, so it’s well worth making sure that claims are both valid and correct.

Completing your expense claim forms.

Here are some easy to follow tips regarding your receipts:

  • It’s mandatory that all claims must be accompanied with a corresponding receipt.
  • You should retain the original receipts for your records and send us photocopies.
  • Part completed or unsigned claim forms will be returned to you unprocessed.
  • Only one form per calendar month will be submitted.
  • Receipts older than two months before the date of submission are inadmissible.

Click here to download your Expense Claim Form. 

Expenses Quick Guide

What you can claim at a glance.

Allowable Expenses

Travel: Reimbursement for travel is allowable where it’s clear that it’s for business purposes, eg: meetings. Daily travel will only be allowable if the Revenue are satisfied that this is a temporary measure and not to a regular place of work. Also, coinciding subsistence, rent, hotel and incidental claims are only allowable if the travel element is allowable; as above.

(See Booklet 490 under 'leaflets' on http://www.hmrc.gov.uk/ or contact us for guidance)

Subsistence: You can claim the full amounts involved provided that 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 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, provided that you have a permanent residence elsewhere.

Incidentals: Incidentals associated with overnight stays can be claimed at £5.00 per night, this is provided that the item has not been claimed elsewhere.

Telephone / Landline: All business calls made from your home telephone are allowable. A copy of the itemised bill, highlighting said 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: Only business miles are allowable and they must be documented in a daily log of your journeys. The log can be found on the reverse of the Expense Claim form.

Mileage Rates (Tax year 2011/2012): See below for the current Rates claimable for business mileage

Vehicles (Regardless of engine sizes):

  • Cars & Vans: The First 10,000 miles in tax year = 45p per mile
  • Cars & Vans: 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 overseas and these will be advised if applicable.

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