GUIDELINES ON EXPENSES FROM GAUK UMBRELLA 

Reducing your tax liability - HM Revenue & Customs (HMRC) states that expenses claimed must be incurred wholly, exclusively and necessarily in the performance of your duties as a director of a GAUK Umbrella.

As a director under an umbrella arrangement working on numerous temporary assignments, you are entitled to reduce your Tax Liability by claiming back expenses that you have to pay in connection with your work.

Tax laws are very strict in defining which expenses may be claimed.  The total of your expenses will be shown on a form P11D; this form is sent to HMRC on your behalf, at the end of each tax year. HMRC may chose to review your tax records and rule that some of the expenses you have been paid should be treated as taxable, you may have extra tax to pay.

The following guidelines are to help you identify the various expenses you can claim in relation to carrying out your duties for each temporary assignment.

Please note: - that if HMRC were to check your records, you would need to be able to justify the business nature of the expenses you have claimed.

WHAT CAN YOU CLAIM FOR?

1) Travel

Travelling expenses associated with work including travel by car, ferry, bus, tube, and train.  Receipts are required for all other expenses incurred except mileage when you are claiming.  The start point and destination and reason for the journey, dates of travel and car details must be completed on each form. These details help justify the business reason for the journey if HMRC challenge you on it.  The start and end of the journey should be specific enough for HMRC to check the mileage using e.g. Multimap. Postcodes are ideal.

As a Director of GAUK Umbrella it must be your intention to have a series of temporary assignments on separate worksites. This is important, because if you only used GAUK Umbrella for a single assignment HMRC would probably not regard your worksite as temporary, and therefore no travel expenses would be allowable.  - You would be in the same position as people who have permanent jobs and who have to pay for their own home to work travel.

If you have any questions about this whatsoever, please contact our customer services team on 01594 546 597 for further guidance.

For the first 10,000 business miles travelled, the allowance will be paid at 40p and the remaining business mileage will be paid at 25p per mile. Parking costs will also be covered if supported by an original receipt.  

BEFORE A MILEAGE CLAIM CAN BE PROCESSED - YOU MUST SUPPLY A COPY OF YOUR VEHICLE REGISTRATION DOCUMENT (V5) AS PROOF OF OWNERSHIP OF YOUR VEHICLE.  (THIS ENABLES US TO VALIDATE OWNERSHIP TO THE INLAND REVENUE IF REQUESTED).

If you travel with other GAUK Directors in your vehicle, you can claim for an additional 5p per mile for each additional person. However, it must be a GAUK Director and the details of their name and GAUK reference number MUST be entered onto the claim form under the section titled “Travel Details”.

2) Meal allowance

If you work more than 5 miles away from your permanent address or temporary workplace, you are entitled to claim for meals taken during the course of your working day on the following basis

a)    £ 2 per day without a receipt.

NB: If you spend more than £2 and have a receipt, then you may claim the full amount spent.  Please note that HMRC carry out ‘employer compliance reviews’ in which they check such evidence. 

Please note that if your accommodation receipt covers a meal too (for example bed and breakfast), then you cannot claim a further £2 for that meal.

3) Daily Allowance

You can claim a 24 hours allowance for incidental expenses when you have to stay away from your permanent address. This is paid at £5.00 per night away for stays in the UK and £10.00 per night for stays abroad and in Ireland. If you are staying with relatives or friends, you can still claim this 24 hours allowance.

4) Accommodation

If you are staying away from your permanent address, a receipt (ideally on headed paper) must clearly show the proprietor’s name, address and telephone number. They should preferably be VAT Registered and provide a VAT receipt.  If your stay in the accommodation is for three months or more, we may need to ask you for proof of your permanent home address to show that this one is only temporary.  You can claim a daily allowance when staying in accommodation (See 3 above). If you are staying with relatives or friends, you can claim accommodation expenses of £25.00 per night. As a form of receipt, you will need to provide the name, address and telephone number of the person you have stayed with.

5) Tools and Clothing

Tools may be claimed for, but must be of an industrial nature and solely for use during your work. A VAT Invoice/Receipt must be supplied, showing items purchased and the shop or supplier.  Clothing covers safety or specialised items such as fluorescent jackets, protective overalls and steel toe-cap boots.

You can claim for cleaning and laundering of protective clothing. This will be paid at the rate of £2.20 per overall. A maximum of 2 items per day for each day worked is claimable.

6) Telephone

You can only claim for business calls. Highlight them on your itemised bill and submit the original bill with the expense claim form. Rental of a landline and purchase of a mobile phone are not covered, nor are “pay as you go” vouchers.

7) Professional Fees/Course Fees

You can claim for courses, books or medical tests relating to your occupation, as well as membership of professional bodies. You must submit supporting documents or invoices with each claim.