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Expenses Guide

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MSL Forza Ltd – Expense guide

MSL Forza LTD will reimburse only those expenses that qualify for tax relief. These expenses will be identified on your payslip as a separate payment paid to you free of both tax and National Insurance.

Under normal circumstances MSL Forza would be required to report expense payments to HMRC, however, HMRC have granted MSL Forza a dispensation. This means that MSL Forza has been given permission by HMRC to dispense with the reporting process provided that only expenses which qualify for relief are considered for reimbursement. It is a requirement that MSL Forza ensures that all employee claims are accurate, that the claims are for allowable expenses only, that the employee has incurred the expense, that the claim is certified as being correct.

Expenses that can be claimed

MSL Forza will pay necessary travel expenses incurred in the performance of the duties of the employment and expenses incurred in respect of necessary attendance at a temporary workplace. MSL Forza will also reimburse expenses other than travel which are incurred wholly, exclusively and necessarily in the performance of the duties of the employment.

Types of Expenses

There are two types of expenses that can be claimed during your employment with an umbrella company. The first are business expenses and the second are rechargeable expenses.

Rechargeable Expenses

When working for an agency or directly for a client you can claim rechargeable expenses if you agree these with the agency/client before the contract starts. The nature of the expenses must be clearly identified to avoid the risk of your invoice being rejected when submitted for payment.

Business Expenses

When you become an employee of an umbrella company you are entitled to claim for legitimate business expenses, which will result in your tax and National Insurance liabilities being reduced. It’s not a licence to print money, however, because you must have actually incurred the cost for which you’re claiming to qualify for the deduction. Whilst you are engaged on a contract you are deemed to be working at a temporary work place, therefore you can claim for certain expenses as you are working away from your permanent place of work. This rule changes if your contract is for more than 24 months from the outset. The rule is explained in more detail at the end of this guide. A significant benefit of working for an umbrella payroll company (UPC) is that you can claim for business expenses that would not be allowable if you were a permanent employee being paid under PAYE. The amount you claim for legitimate business expenses is deducted from your gross earnings to arrive at your gross taxable pay. PAYE deductions are then calculated on this figure. As you will see, the result is an increase in your net take home pay.

Documentary evidence

On taking up employment with MSL Forza employees will be provided with detailed guidance regarding the provision of documentary evidence. Generally speaking full details of the journey must be supplied when claiming mileage relief.

Travel expenses

Travel in the performance of the duties of the employment is where the employee travels during the course of the working day as opposed to travel to and from work.

Travel to and from work will qualify where the workplace is a temporary workplace as defined in law. Employees working for MSL Forza are expected to attend a series of workplaces within the employment and as such it is expected that the travel expense of getting to and from work will qualify for tax relief.

The claim must provide detail of the journey (e.g. postcode to postcode), the start and finish time of the journey together with miles travelled. Mileage relief will be granted using the rates approved by HMRC.

Travel by bus, train or other forms of transport must be accompanied by the relevant ticket. Travel by taxi may be granted but only where it can be shown that it was necessary and it must be supported by a receipt.

Where the travel expense qualifies and meals are purchased in course of the working day a meal allowance will be paid in accordance with the benchmark rates set by HMRC. Meals must be purchased and receipts produced in accordance with company policy.

Where the travel expense qualifies for relief and it is necessary to stay away from home reasonable overnight hotel expenses will be reimbursed. Full documentation must be provided in support of the claim. In addition HMRC provide for an additional £5 per night to cover incidental expenditure (£10 if overseas).

Other expenses

Protective clothing

Items of clothing such as overalls, steel toe capped boots, helmets, Hi-Vis jackets and similar will qualify for relief and be reimbursed on production of documentary evidence. Laundry will be reimbursed on production of receipts.


HMRC will not grant relief in respect of contract phones – telephone will be reimbursed only where there is an itemised bill and business calls can be identified.

Professional subscriptions

Will be reimbursed where connected with the job, where on the HMRC approved list and on production of evidence.

Training Courses

Must be job related and supported by evidence. Attendance on any course must be cleared with Personnel first.

Tools, equipment, consumables

Reasonable expenses will be reimbursed provided wholly exclusively and necessarily in the performance of the duties of the employment.


It is not possible to claim expenses for entertaining.

Eye tests

If you are required to use a VDU as part of your normal duties you will probably be able to claim for the cost of an eyesight test and the cost of spectacles or contact lenses required solely for VDU use. You will need to clear the expense with Personnel before hand as there are some other provisions that HMRC insist must apply.