Expenses can be a minefield, especially when you are new to contracting, so here is a brief guide on the rules.
In order to qualify for tax relief on expenses, you must satisfy the following criteria:-
This is an example of criteria 1
You join PayStream with the intention of taking a temporary assignment which will turn permanent in the future. You are not allowed to claim expenses for the duration of your temporary assignment, as it is your intention to take a permanent role and not continue with further temporary assignments on a different site.
This is an example of criteria 2
You join PayStream with a 12 month contract and you intend to take further temporary assignments at different sites, after 12 months your client offers you a further 18 months contract extension on the same site. At this point it is your intention to be on the same site for a total of 30 months from your original start date and you therefore must no longer claim expenses from the start of your extension contract due to the 24 month rule.
Once you know that you qualify to claim expenses the key thing to remember is that for a claim to be allowable the expense must be incurred:-
In the performance of your employment with us to satisfy HMRC for tax relief purposes.
Here are some examples of when expenses can and can't be claimed
We hope this guide gives you a general overview of the policy but it is in no way exhaustive. Our full expenses policy is available on your portal in the downloads section but please see here for an easy to read guide.