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Summary of Expenses

Summary of Expenses

One of the attractions of working for yourself is being able to offset all sorts of purchases against your tax liability that people slaving away on PAYE can’t.  The good news is that if you work for an umbrella payroll company (UPC) like MSL Forza, there are still plenty of allowable expense items for which you can claim.  However, these are governed by strict rules laid down by Her Majesty’s Revenue and Customs (HMRC) and we make a point of adhering to those rules to the letter – it’s the only way to be sure there is no comeback that might lead to an HMRC investigation of your affairs later.  And you definitely don’t want that, trust us.

There are UPCs out there who will promise you, if not the Earth, then something pretty close to it when it comes to boosting your take home pay through dubious expense claims.  This is usually something along the lines of: “HMRC says you can claim for this, that and the other, so you may as well do so because they will reduce your tax and National Insurance liabilities and put more money in your pocket.”  But it is not in your interests – or ours – to make false expense claims.  We pride ourselves on the provision of an excellent, responsible service and as such we have many loyal clients who stay with us for years or come back to work for us time and time again.  If we had to tell them that they had incurred extra tax bills and possibly penalties for making false claims they would be in trouble and we would quickly be out of business, our reputation in tatters.

So we’re proud to be fully HMRC-compliant and, now you understand why, we trust you will see this is the only sensible way to go.

There are two types of expenses that can be claimed whilst working for MSL Forza.  The first is business expenses and the second is rechargeable expenses.

Business expenses

When you become an employee of MSL Forza you are entitled to claim legitimate business expenses, which will indeed result in your tax and National Insurance liabilities being reduced.  It’s no licence to print money, however: you must actually have incurred the cost to qualify for the deduction.  Whilst you are engaged on a contract you are deemed to be working at a temporary workplace, therefore you are able to claim related 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 – please see our link to the 24 Month rule for more information.

Rechargeable expenses

When working for an agency or directly for a client you may also 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.  These expenses will be reimbursed to you in full and will not be subject to deductions for income tax and National Insurance contributions.

MSL Forza Expense Policy on Business Expenses

It is essential that you are aware of and understand the following to minimise any delay in us processing your claim for business expenses:

  • All expenses claimed must have been incurred wholly, exclusively and necessarily in the performance of your duties as a contractor
  • You cannot claim for any expenses incurred prior to becoming an employee of MSL Forza
  • You must not submit travel and subsistence claims for a location where you have worked or will have been working for more than 24 months
  • You cannot submit travel and subsistence claims if the first assignment you have, will be your only assignment during your employment with MSL Forza
  • Expense claims should be submitted when you complete your timesheet using our online portal and should cover the same period
  • When necessary, you will be expected to provide relevant documents to support your claim i.e. receipts, proof of purchase and usage
  • Your expense claim must be signed to avoid rejection and possible delay in payment.
  • At the end of your contract, if you find that you do not have enough gross pay outstanding for us to offset your legitimate business expenses, we will offset as much as we can and then carry forward the remaining amount to use against future claims.

Call us and request a brochure with a full summary of expenses that you could potentially claim for on 0845 611 8017 or info@mslpayroll.co.uk to speak with one of our advisors.