Contractors claiming for allowance

**eddiegee** · 3 September 2007, 09:08

sup

Hi m8,

you sure can claim travel, subsistence and accommodation. Iam using danbro and i claim all my travel expenses (bus) and 26 quid per day subsistence!, i aint sure about the second part of your question though m8.

**Pickle2** · 3 September 2007, 09:14

Originally posted by eddiegee View Post

Hi m8,
Iam using danbro and i claim 26 quid per day subsistence!.

**LisaContractorUmbrella** · 3 September 2007, 09:17

Originally posted by krssubbu View Post

Hi Guyzs,

I am on the HSMP scheme. I have my extension on Jan 2009. I am doing a contract role at the moment. I just wanted to know as a contractor can i claim for Travel, subsistance and accomdation allowance. Will this affect my HSMP extension and Indefinite stay ??

Pls help me out

Thanks

Subramanian

Hello Subramanian,

You can claim your travel costs as you are working on a temporary assignment. However, you can only claim subsistence costs as expenses if they form part of your travel costs; if you are travelling to the same place of work each day there would be no legitimate expense. You can also claim accomodation provided that the cost is an additional cost that you have incurred wholly and exclusively because of the contract. E.g. if you live in Manchester and pay either rent or mortgage but decide to contract in London and rent a flat there to avoid commuting such a long distance the cost can be claimed. However, if you rent out your property in Manchester whilst you are contracting there will be no additional cost to you (as your rent/mortgage costs will be covered by the tenant) and therefore you could not claim the cost of the property in London. Obviously any expenses you do claim must be supported by receipts.

HTH

**TheFaQQer** · 3 September 2007, 10:10

Originally posted by eddiegee View Post

Hi m8

Oh dear - this is not a text message!

Iam using danbro and i claim all my travel expenses (bus) and 26 quid per day subsistence!

As long as you have receipts, and they are legitimately incurred expenses, then you're fine. However, if you are travelling by bus every day, where / what are you eating to run up a daily bill of £26???

If you don't incur the expense, you can't claim it. Simple as that.

**TheFaQQer** · 3 September 2007, 10:11

Originally posted by krssubbu View Post

Hi Guyzs,

I am on the HSMP scheme. I have my extension on Jan 2009. I am doing a contract role at the moment. I just wanted to know as a contractor can i claim for Travel, subsistance and accomdation allowance. Will this affect my HSMP extension and Indefinite stay ??

Pls help me out

Thanks

Subramanian

As soon as you know that you will be working in the same location for two years or more, then you can't claim travel expenses.

**eddiegee** · 3 September 2007, 11:33

Originally posted by TheFaQQer View Post

Oh dear - this is not a text message!

As long as you have receipts, and they are legitimately incurred expenses, then you're fine. However, if you are travelling by bus every day, where / what are you eating to run up a daily bill of £26???

If you don't incur the expense, you can't claim it. Simple as that.

Their dispensation means that i dont have to produce recipts, and i like to eat at Marks and Spencer for breakfast, lunch and dinner.......expensive do you know!!

They say if your working day including travel time to get to, and from work excluding lunch break exceeds 10 hour you can claim the 26 squid sub, so i do.

got an issue with that?

**eddiegee** · 3 September 2007, 12:20

Originally posted by Pickle2 View Post

well pickle maybe you should re think about your career if thats how you feel.

**LisaContractorUmbrella** · 3 September 2007, 12:41

Originally posted by eddiegee View Post

Their dispensation means that i dont have to produce recipts, and i like to eat at Marks and Spencer for breakfast, lunch and dinner.......expensive do you know!!

They say if your working day including travel time to get to, and from work excluding lunch break exceeds 10 hour you can claim the 26 squid sub, so i do.

got an issue with that?

Their dispensation means that they don't have to produce receipts it doesn't mean that you do not have to have them. You haven't said whether you are travelling to the same place of work every day - if you are you cannot claim a daily subsistence - the scenario you have given means that Gordon Brown would be giving you over £125 per week tax relief just for going to work.

**TheFaQQer** · 3 September 2007, 13:26

Originally posted by eddiegee View Post

Their dispensation means that i dont have to produce recipts, and i like to eat at Marks and Spencer for breakfast, lunch and dinner.......expensive do you know!!

They say if your working day including travel time to get to, and from work excluding lunch break exceeds 10 hour you can claim the 26 squid sub, so i do.

got an issue with that?

No - but I don't work for HMRC.

Their dispensation means that you don't have to produce receipts to your employer. It does not mean that you don't have to produce receipts to HMRC to prove that you actually incurred the expense.

I have a dispensation with no limit on it - under your reasoning, I could claim £1million pounds a day as subsistence with no need for a receipt, tax free.

Best of luck if HMRC ever comes knocking - they will absolutely ream you for it.

Contractors claiming for allowance