Business expenses

Your tax and national insurance deduction is based on your gross salary less any business related expenses.

Most contractors are unclear about what kind of expenses are eligible, so here's a list of business expenses that you can offset to increase your take home pay:

• Mileage. Any miles done both to and from your temporary place of work, or business miles travelled as part of your job No receipts are needed.
• Travel. Any other travel between your home and your temporary place of work can also be claimed, whether by bus, train, taxi or tube.
• Subsistence. You are able to claim subsistence at a fixed level to cover the cost of meals whilst out at work. There is no need to send your receipts in.
• Professional subscriptions. The cost of joining your professional association is an allowable business expense.
• Accommodation. You can claim the full cost of accommodation when you have to stay away from home for work purposes.
• Personal Incident Expenditure (PIE). If you stay overnight on business you can claim a fixed amount for miscellaneous items. No receipts are necessary.
• Home/mobile telephones. The cost of itemised business calls is allowable.
• Training and related travel and subsistence. You can claim for any business related training, including course books, exams and associated travel costs.
• Foreign travel. If you have travelled to the UK to take up contract work then you can claim the cost of travel between your home and the UK.
• Personal protective equipment, such as ear defenders and goggles that you need to comply with health and safety requirements.
• Small hand tools that are expected to be replaced within one year.
• Specialist clothing. Protective clothing, uniforms or items of uniforms will be allowed.
• Professional Indemnity Insurance (PII). Although we offer inclusive PI you may have made your own arrangements, these costs are an allowable expense.

FPS is one of the few umbrella companies that absolutely requires our clients to provide receipts for business expenses claimed unless it is for subsistence or travel. We make no exceptions.  This policy is key to our reputation for trustworthiness.

Our online expenses facility available through the client portal  will guide you through our expenses process.

No nasty surprises

Business expenses can be a grey area. To avoid a nasty surprise down the line, we will check your eligibility before you submit your claim. Our expenses questionnaire has been drawn up in consultation with HMRC and establishes where your temporary workplace is. This ensures your claims are all legitimate and that there'll be no nasty surprises down the road in the form of an unexpected tax bill.