How do I submit expense claims when using an umbrella company?

You may be able to claim specific expenses that your agency or end client has agreed to reimburse you. Continue reading to discover how to submit expense claims when using an umbrella company.

What expenses can you claim when using an umbrella company?

Supervision, Direction and Control (SDC) came into effect in April 2016 to limit the number of contractors who were able to claim travel and subsistence expenses. HMRC introduced the legislation as they believed many contractors working through an umbrella company were taking advantage of tax relief. These contractors were operating similarly to employees in permanent employment (who couldn’t claim tax relief) and, therefore, shouldn’t be eligible to claim tax relief.

SDC legislation means that if an employer gives specific directions or instructions for tasks, supervises how, when, and where the work is done or maintains control over the worker’s activities, then they are likely to be classified as an employee rather than self-employed and therefore cannot claim tax relief on travel or subsistence.

HMRC believes that if contractors or freelancers are providing their services through an employment intermediary, they will be subject to SDC and should be treated in the same manner as a permanent employee (for tax purposes).

The introduction of the SDC legislation has seen a significant decrease in the number of contractors working through an umbrella company who can claim tax relief on travel and subsistence expenses. However, there are some instances where your agency or end-client may agree to reimburse you for expenses incurred on work duties.

This most often means travel, accommodation, and subsistence (food and drink); however, there are other instances where costs may be reimbursed, but this will need to be discussed and approved by your agency or end client.

How do I submit expense claims when using an umbrella company?

If you are able to claim expenses that your agency or end client has agreed to reimburse you, you’ll be asked to upload the expense claims on a weekly or monthly basis to the umbrella company. The process will vary between providers, so it’s important to check with your umbrella company about what you are required to do.

How do I submit expense claims as an employee of Churchill Knight Umbrella?

You may be able to claim specific expenses that your agency or end client has agreed to reimburse you. You can do so via the Expenses Declaration form on our website. Fill out the details and attach receipts for the expenses you’re claiming. Please ensure the expenses have been pre-agreed by your agency or end client.

Join Churchill Knight Umbrella today

If you are interested in registering with an FCSA-accredited umbrella company, why not give our expert Sales Consultants a call to find out how we could help? Since we launched in 2017, we have quickly become one of the most popular umbrella companies in the UK, and we look forward to welcoming you to the service.

If you want to learn more about Churchill Knight Umbrella or join our umbrella service, please call us on 01707 871622. You can also schedule a call at a time that suits you, and a team member will contact you.