How to claim for expenses at an umbrella company

Today, our experienced team is discussing how contractors should go about claiming expenses from their umbrella company, with insight into the types of expenses you can claim. 

How can I claim expenses through an umbrella company? 

Expenses must be claimed using an expense claim form or an online expense claim portal and are subject to checks and authorisation. 

Mileage

Umbrella companies will check that the vehicle used belongs to the worker and not someone else. They may use the DVLA vehicle check tool to substantiate this. 

They will have to use the AA Route Planner to verify mileage. The mileage travelled for each journey must be checked against the recognised route planning website before being put on the form. 

Temporary accommodation 

Usually, there are no set allowances for accommodation, but the cost must be deemed ‘reasonable’. Umbrella companies will need receipts that must clearly show the address of the accommodation, the payee, the amount and the date.

Business costs

This could be anything that contributes to the smooth running and/or performance of your role, such as training, IT equipment and parking.

Before you incur an expense that may fall within this category, please check whether with your umbrella company that it will qualify for reimbursement. 

Reimbursement 

If you have agreed in advance with your agency or end client that you will be reimbursed for business expenses in full, your umbrella company may ask you to provide:

Copies of your claims and accompanying receipts in order for them to process your expenses free of tax and National Insurance. 

Check your SDC status 

Under IR35, a contractor’s SDC (supervision, direction or control) status determines what kind of expenses they can claim for. 

Generally speaking, if you work in complete independence (e.g. no one tells you how to do your job) then you are likely not subject to SDC. 

Mint Umbrella will help you determine your SDC status before you embark on a new project. 

For more info or if you have any questions concerning expenses, don’t hesitate to contact us via email at [email protected].