Can I claim expenses using an umbrella company?

Before April 2016, one of the most prominent advantages of using an umbrella company for payroll was the ability to claim travel and subsistence expenses. However, the government decided to limit those who could claim these expenses because the benefactors (contractors using an umbrella) worked very similarly to permanent employees (but those in permanent employment could not claim the same benefits).

Legislation called Supervision, Direction and Control (SDC) was introduced (April 2016) to stop a majority of umbrella employees claiming travel and subsistence expenses. Now, only those who are not subjected to Supervision, Direction or Control in the workplace can claim these expenses. As this left so few eligible to claim travel and subsistence expenses, a lot of the most popular and respected umbrella companies no longer allow any of their employees to make such claims.

Here is what Supervision, Direction and Control means:

Supervision – This is when somebody, such as a line manager, oversees the work being undertaken by a temporary worker. Supervision means that workers are monitored to ensure the work they are doing is to the correct standards.

Direction – Direction means that a worker is given guidance on how to complete tasks to the employer’s satisfaction. It may include being given advice and instructions on how work is to be undertaken.

Control – This is when a worker is essentially controlled by the employer and is told what to do, and when. Control includes the ability for the employer to move the worker to another job at the business and pick up new tasks.

Can umbrella company employees still claim expenses?

Umbrella company employees can still claim reimbursed expenses – the same expenses as those working in full-time employment. These include, but are not limited to:

• Professional fees and subscriptions
• Overnight stays associated with work-related travel
• Work equipment
• Travel costs which occur solely when travelling during working hours to a mobile site or exhibition (For example).

Umbrella company employees will need to speak with their agency and umbrella to learn if they are eligible to claim reimbursed expenses and what the processes involved are.

Churchill Knight Umbrella employees

If you are a Churchill Knight Umbrella employee, please contact us for more information about claiming reimbursed expenses. Please call 01707 669026 or email umbrella@churchill-knight.co.uk.