Contractors' Questions: Can I claim Right To Work postage costs?

Contractor’s Question: My umbrella company says I must post it my original documents for it to be compliant with Right To Work checks, but is the cost I’m going to incur from this recorded delivery going to be claimable? If so, could I also claim the cost of the petrol I’ll use in driving to the post office?

Expert’s Answer: The question of whether or not the cost of postage can be claimed has the same rationale as any other expense -- you will have had to pay to send your documents to your umbrella company because you have undertaken the contract and for no other reason. Therefore the requirement for contractor expenses of ‘wholly and exclusively’ is met and the cost is allowable as an expense.

With regard to the mileage claim for travel to the post office, in theory yes, it would be allowable. However, you would have to prove that there is no duality of purpose so you wouldn’t be able to post anything else at the same time as you posted your ID and, if you had a post office that was in walking distance but you chose to drive, HM Revenue & Custom may question it, just because they’re like that!

The expert was Lisa Keeble, founder of Contractor Umbrella.
 

 

Thursday 9th Oct 2014
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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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