Claiming Chargeable Expenses through Clarity Umbrella

Claiming Chargeable Expenses through Clarity Umbrella

Chargeable expenses are expenses that your agency or end client has agreed to reimburse to you.

If you have expenses that the end client has approved, you will need to upload a copy of these expenses to our portal, with the accompanying receipt and reason the expense has been incurred. These will be then added to your invoice by us and sent on to the agency / end client, then as long as the expense is considered wholly, exclusively and necessarily incurred because of the assignment, you receive the full value of the expense back (provided that the expense is allowable for tax purposes – see below).

In order to ascertain if these need to be taxed through the payroll, we need to see a copy of the receipt and details of the expense, this includes the purpose of the travel / expense. If any of these expenses include mileage, then we need to know the details of the trip e.g. purpose of travel, start / end destination postcode / miles covered / and the purpose of the trip.

We will then refer to the Business-to-Business contract, of which you will have received a copy, to ascertain where your contractual location / base of work is and if there are any requirements for you to travel to certain locations. We will then review any travel to ensure that this is not part of the requirements of the contract and as such we would then not need to tax these. If there is a requirement to make travel to certain locations then these visits (and accompanying expenses) may have to be taxed.

** Please note these need to be actual receipts. We are unable to accept bank statements or visa receipts which do not show a breakdown of the actual expense incurred. If these are the only documents you have, then our apologies but these will be taxed, as under HMRC guidelines this will not suffice as evidence of the incurred expense and as such must be subject to taxation as a benefit.

If claiming business mileage as an expense then you must ensure that you have the appropriate insurances in place to cover you for business usage, Clarity Umbrella will not be responsible for any claims whilst on business travel.

So to explain, if the expense is incurred wholly, exclusively and necessarily because of the assignment, and we have a receipt for the exact amount, then these can be reimbursed back to you in their entirety. However, in some cases if the expense includes something like a mobile phone bill, then we will need to see the actual cost of the business calls relating to the expense, these will be processed back to you in full. However, if the whole bill is being paid, then anything which is not directly associated with the contract will be paid back to you through the PAYE system and the appropriate taxes applied.

We understand that this may seem time consuming and that you may have already provided receipts to your end client or the agency, however as your employer it is our responsibility to validate the expense claims, so please bear with us as you will be asked to supply receipts for each expense incurred. Where there are no receipts provided, then the funds will unfortunately be subject to PAYE taxes during the payroll, so do make sure you keep those receipts!

Finally, if your agency / end client has agreed a fixed figure for say subsistence daily allowances, then we will ask for receipts for the actual cost incurred and if there is an excess paid that has not been receipted, then we will tax this figure when we process payment to you.

** Please note that we must advise you that any falsified expense claims may lead to disciplinary action.