This brief guide covers the key points to recording and submitting travel expense information. For more detailed or specific information please get in touch.
When you can claim travel expenses?
You can claim repayment of travel expenses for travel to and from a place qualifying as a temporary workplace. A workplace can only qualify as temporary if you only expect to be working at that workplace for 24 months or less. If you know at the outset that you will be onsite for more than 24 months, then you cannot claim repayment of travel expenses. If, during the course of an assignment you become aware that you will be on that single site for longer than 24 months, e.g. if after 18 months you receive a one-year contract extension, then from that point of time, you can’t claim repayment of travel expenses. It is the point at which you know, rather than the point at which you have actually been on site for more than 24 months. If you move to a different site, you need to demonstrate that a substantially different journey is undertaken to get there, and if you return to the same site, you will need to show there has been a significant break from your previous time at that site.
You will need to meet the following criteria prior to submitting a mileage claim.
For the journey to qualify as travel to a temporary workplace, if you work at a single site, you will need to be able to show that you work outside of SDC (supervision, direction, control) (and that no person has the right of SDC) as to the manner of your work . Alternatively, if you work from more than one workplace (multi-site) for the same engager, then one or more of those workplaces may qualify as temporary workplace(s), regardless of SDC. Unless you are a multi-site worker, you will need to complete a SDC form for us to check that you are eligible, along with a copy of your qualifications. For mobile workers, we will need to assess your daily work pattern, and we will need full details of the reason for your journeys, of what you were doing, and to know who is the person for whose benefit you are working at each site.
You will need to show that you are using your own vehicle, and comply with the following.
- You need to verify the cc and fuel type of your vehicle.
- You will need to supply sufficient fuel receipts for your vehicle to cover the mileage claimed.
- We will check receipts to ensure that the date and time are not inconsistent with your stated work times.
You can claim the cost of mileage for travel to and from your temporary place of work. Mileage rates (cars and vans) are 45p per mile for the first 10,000 miles in any fiscal tax year (For example 6th April 2016 to April 5th 2017) and then 25p per mile thereafter. This allowance is to cover fuel and running costs of the vehicle e.g. road tax, insurance, servicing and depreciation, therefore additional claims for maintenance, repair and loan interest are not permitted. If you are billing mileage to the agency/client at a lesser rate, you can also claim the difference between the amount repaid by agency/client and the 45p per mile rate. For example if you are billing the agency/client 25p per mile, you can also claim repayment of a further 20p per mile.
|Type of vehicle
||First 10,000 Miles
|Cars & Vans
||45p per mile
||25p per mile
||24p per mile
||24p per mile
||20p per mile
||20p per mile
Exact Payroll Company Overhead
This cost is paid out of funds received from the agency/client, and before any of that money is allocated to you. It is not paid out of your taxed income, and you do not need to claim this.
Year end claims
Tax paid on eligible expenses actually incurred other than reimbursed mileage can be claimed back from HMRC after the end of the tax year.
Anyone can be randomly audited by HMRC and therefore, any claims for journeys (other than by bicycle) which are not adequately supported by fuel receipts will not be processed.