EXPENSE CLAIM GUIDANCE


EXPENSE POLICY
You may well work on assignments that allow you to claim legitimate expenses for mileage, travel, accommodation and subsistence when it is incurred wholly, exclusively and necessarily in the performance of your duties and where you are travelling to or staying near a temporary worksite.

You may also be allowed other expenses that are not related to your work site but again are wholly, exclusively and necessarily related to your work. These may include tools and special clothing, subscriptions and training, home working and other such costs that you incur.

Payment of expenses is at the sole discretion of Payco Services Ltd. Any claim must be made by using the company’s claim process. Claims are subject to checks and are frequently audited. You may be required to reimburse claims where they cannot be verified.

It is very important that you read the whole of this guide as not all expenses you are able to claim can be paid to you in all circumstances tax free at the time you meet the cost. As such you may need to make the claim at the financial year end.

We appreciate that the way you earn your living may have got more complicated over the years, and particularly recently, but we are committed to help you in any way we can. The information below is important and we strongly recommend that you retain it for reference. In addition we are always available to make sure that you are aware of everything that you need to know.

So what qualifies as a temporary work place? As it is important to note that all travel and subsistence costs must be incurred whilst travelling to or from a temporary workplace.
A temporary workplace is somewhere you go to perform a task of limited duration or for a temporary purpose. If you are likely to spend more than 40% of your working time at a single site and you will be at that site for more than 24 months, it cannot be a temporary workplace.

Further, if the location where you are working is likely to be the only place where you are going to be working for the end client (the company that directly benefits from the work that you do) during any individual assignment with that end client and the way you work can be supervised, directed or controlled by anyone, then again the workplace is not considered temporary. It will be considered the only site at which you are working unless there is evidence that you are required to and do carry out work for which you have been engaged at different sites as part of the same assignment. If you are in any doubt whether the site at which you work is a temporary work place please contact our Customer Service Team.

Are there any other circumstances that are allowed?
If on occasion you have to travel to another location which is not a workplace and that journey is undertaken because it is necessary and a part of the work to carry out that assignment then that may be allowed. This is called travel in the performance of the duties of the employment i.e. travel that is on the job. Instances where this may apply include travel to a materials supplier, your end clients’ administrative office (for a specific reason as a part of the work that is being performed) or a one off trip to another site where you aren’t working but need to pick something up or go through something with a Project Manager. Each such claim would need full detail to be provided for consideration.

In this case it does not matter whether your normal workplace is the only one on the assignment but it is important to remember this will not itself qualify as a work place and therefore has no impact on whether an assignment is ‘multi-site’.

Mileage; Your claim will be calculated based on the following HMRC Approved Mileage Rates. The mileage rate takes into account all the costs involved in running a vehicle; petrol, tyres, road tax, insurance and repairs. Please ensure you have adequate insurance for use of your vehicle on business.

For a motor car or van the rate for the first 10,000 miles is 45p. After 10,000 miles this drops to 25p. If you take a passenger engaged by Payco to work on the same assignment then a further 5p per mile can be allowed. The rate regardless of miles for motorbikes is 24p and for bicycles is 20p

Other Travel;Receipts are required for all travel by bus, train and other public transport or in the case with low cost or “ticketless” airlines where the email confirmation is accepted as a receipt.

Other allowable costs in relation to travel include bridge, tunnel and road tolls and car parking charges.

There may be occasions where it is necessary, or more cost efficient, to hire a vehicle for one or more business journeys. In such circumstances it is advisable to contact our expense department where we will be able to advise you as to the best way to complete your claim.

You can claim the costs of subsistence you incur when attending a temporary workplace by claiming one meal allowance per day from the following;

Up to £5.00 may be claimed where you are away from home for a period of at least 5 hours and you incur the cost of a meal.

Up to £10.00 may be claimed where you are away from home for a period of at least 10 hours and you incur the costs of a meal.

Up to £15.00 may be claimed where you are away from home for a period of at least 5 hours and your return home is after 8pm and you incur the cost of a meal.

Up to £20.00 may be claimed where you are away from home for a period of at least 10 hours and your return home is after 8pm and you incur the costs of a meal.

Up to £25.00 may be claimed where you are away from home for a period of at least 15 hours and your return home is after 8pm and you incur the cost of a meal.

A meal is defined as a combination of food and drink and that although receipts are not required with your claim (unless your expenditure is higher than the listed amounts in which case you can provide receipts and claim the higher amount), we do recommend you retain your receipts as part of your own records as HMRC may require them to check that an expense has actually been incurred.

It is also important that you retain receipts as where you are eligible to claim for your subsistence but we are unable to pay it we will need to log your actual expenditure as only actual receipted amounts can be claimed at year end.

The cost of accommodation and breakfast can be claimed when you stay overnight. In addition to this the cost of all meals taken during the period spent away from home are also allowable. Receipts must be provided. If the accommodation is under a Tenancy Agreement please contact the expense department.

In addition there is a £5 per night Overnight Incidentals Allowance for each night spent working away from home, rising to £10 per night for overseas work. This is to cover incidentals such as newspapers, snacks etc and no receipts are required.

Safety Equipment, Clothing and Tools; this includes all specialist and/or safety clothing and for smaller items of tools and equipment. You cannot claim for everyday clothing and receipts are required. You may also be eligible to claim a reasonable unreceipted amount for laundering this clothing dependant on the work you do so please check with us.

Professional Subscriptions, Training Course Fees, Medical Check-ups, Stationery and books; These may be allowable provided that, again, they are incurred wholly, exclusively and necessarily in the performance of your duties. Medical check-ups and training course fees are only allowable where they are compulsory for work. With regard to professional subscriptions please contact us as HMRC have an approved list.

Business Calls; you can only claim for business calls. They must be highlighted on your original itemised bill and attached to your claim. The purchase of a mobile phone or any “pay as you go” vouchers are not included.

Eyesight tests and glasses; where you are required to use a visual display unit (VDU) as part of your normal duties, we will reimburse the costs of an eyesight test. A receipt is required from your optician.

Where a separate telecommunication system is used exclusively for business purposes, then the full cost of this may be claimed (including rental/standing charges), a copy of the bill will always be required.

Homeworking; Where you are required to carry out substantive duties of your employment with us from home on a regular basis, we can in certain circumstances reimburse the additional household costs you incur in carrying out your duties from home.

The additional costs usually relate to lighting, heating, broadband, etc. whilst you are carrying out your employment duties from home. We can at our discretion reimburse a maximum of £4 per week for any additional cost of working from home.

If you believe you carry out substantive duties from home and incur such additional costs please contact us for further information.

Other Expenses; If you wish to claim an expense that has not been listed above please contact our Expense team and we will be happy to advise you if you are allowed to claim.

FURTHER INFORMATION

How can I claim? We recommend that you submit your expenses to us via our online portal where you can also attach any receipts along with the submission. You will shortly receive an email with a link to the portal along with your unique login details.

Alternatively an editable PDF is available to submit by email although doing it this way will mean you will also need to scan and attach receipts where required and you will also need to keep any copies of your submitted claims yourself whereas using our portal means every claim you submit to us is stored in your own secure account area.

How is my claim paid?The rules concerning the reimbursement of expenses changed in April 2016 and in all cases where we are able to reimburse expenses we will. However where we are unable to pay you your expenses we will still audit them and log the expense to allow you to reclaim the tax paid at the tax year end. For a summary of how and in what circumstances any particular expenses can be claimed please see the table below. For detailed guidance please contact our Customer Service Team.

The table clarifies the expenses that can or cannot be reimbursed if the reimbursement would be considered by HMRC as a “Salary Sacrifice Arrangement” (SSA). An SSA is any arrangement where the amount of salary or other taxable earnings depends on (or is varied by) the payment of expenses. Where we fund the payment of expenses from the fees we receive from the agency, this would naturally fall within the definition of an SSA.

This means our ability to pay you certain expenses can depend on whether any reimbursement of the expense is totally separate from the money that you earn for the work that you do. Where it is we will always look to reimburse you accordingly. The nature of any assignment may mean expenses are fixed and/or entirely separate from the payment for the work done and we will always work with our agency client and/or possibly their client in order to determine when this is the case. Although this is now a complex area we will always ensure, where possible, that your claims process remains as it always has been. Please feel free to speak to our Customer Service Team should you ever feel such an option may be relevant to your claims.


This table shows the position in respect of Travel and Subsistence allowances

Step 1
Checking the rules
Only allowed
if the work place
is temporary
Step 2
Where it is allowed, how do I get the benefit?
Can be paid
tax free in all
circumstances
Step 3
Can only be
paid where
unconnected
to salary
Step 4
Otherwise
deduction can
be claimed at
the end of the tax year
Mileage Allowance
Workplace Parking Expenses
Other travel
bus, train, plane etc
Day Subsistence
Receipted Food/drink
alternative to day subsistence
Accommodation
Meals (Food and drink)
When staying away overnight
Overnight Incidentals
Strike disruption costs
Working late (additional transport costs)
irregular after 9pm
Travelling to/from Offshore rigs Incl. essential o/night
Step 1
Checking the rules
Only allowed
if the work place
is temporary
Mileage Allowance
Workplace Parking Expenses
Other travel
bus, train, plane etc
Day Subsistence
Receipted Food/drink
alternative to day subsistence
Accommodation
Meals (Food and drink)
When staying away overnight
Overnight Incidentals
Strike disruption costs
Working late (additional transport costs)
irregular after 9pm
Travelling to/from Offshore rigs Incl. essential o/night
Step 2
Where it is allowed, how do I get the benefit?
Can be paid
tax free in all
circumstances
Mileage Allowance
Workplace Parking Expenses
Other travel
bus, train, plane etc
Day Subsistence
Receipted Food/drink
alternative to day subsistence
Accommodation
Meals (Food and drink)
When staying away overnight
Overnight Incidentals
Strike disruption costs
Working late (additional transport costs)
irregular after 9pm
Travelling to/from Offshore rigs Incl. essential o/night
Step 3

Can only be
paid where
unconnected
to salary
Mileage Allowance
Workplace Parking Expenses
Other travel
bus, train, plane etc
Day Subsistence
Receipted Food/drink
alternative to day subsistence
Accommodation
Meals (Food and drink)
When staying away overnight
Overnight Incidentals
Strike disruption costs
Working late (additional transport costs)
irregular after 9pm
Travelling to/from Offshore rigs Incl. essential o/night
Step 4
Otherwise
deduction can
be claimed at
the end of the tax year
Mileage Allowance
Workplace Parking Expenses
Other travel
bus, train, plane etc
Day Subsistence
Receipted Food/drink
alternative to day subsistence
Accommodation
Meals (Food and drink)
When staying away overnight
Overnight Incidentals
Strike disruption costs
Working late (additional transport costs)
irregular after 9pm
Travelling to/from Offshore rigs Incl. essential o/night

Step 1 – are you eligible to claim the expense? This column tells you whether you can always claim any expenditure
or whether you can only claim the expense if the work place qualifies as temporary (ie because you are on a multi-site assignment).

Step 2 – tells you whether we can pay it to you tax free as we always have and under all circumstances.

Step 3 – tells you whether you can only be paid the expense if the payment is totally separate from your salary,
in other words where your salary will not be in any way affected or varied as a result of the payment of the expense.

Step 4 – tells you whether (where we are unable to pay you the expense) you can claim back any income tax deducted at the end of the year.


This table shows the position concerning other main expenses and are not related to whether a site is temporary

Can be paid
tax free in all
circumstances
Can only be
paid where
unconnected
to salary
Otherwise
deduction can
be claimed at
the end of the tax year
Safety Equipment
incl; clothing and tools
Laundry
Professional Subscriptions
Training Course Fees
Medical Check-ups * *
Stationery and books
Business Calls
Eyesight Tests
incl. glasses
*
Homeworking
Can be paid
tax free in all
circumstances
Safety Equipment
incl; clothing and tools
Laundry
Professional Subscriptions
bus, train, plane etc
Training Course Fees
Medical Check-Ups *
Stationery and books
Business Calls
Eyesight Tests
incl. glasses
*
Homeworking
Can only be
paid where
unconnected
to salary
Safety Equipment
incl; clothing and tools
Laundry
Professional Subscriptions
bus, train, plane etc
Training Course Fees
Medical Check-ups
Stationery and books
Business Calls
Eyesight Tests
incl. glasses
Homeworking
Otherwise
deduction can
be claimed at
the end of the tax year
Safety Equipment
incl; clothing and tools
Laundry
Professional Subscriptions
bus, train, plane etc
Training Course Fees
Medical Check-ups *
Stationery and books
Business Calls
Eyesight Tests
incl. glasses
Homeworking
* This is available for Employees only and then only in specific circumstances and where it is paid for by the Employer. For further information please contact the Customer Service Team.

As in all such circumstances should HMRC review your individual records and deem that some of your expenses claimed were not wholly or exclusively necessary in the performance of your duties for business purposes, then these expenses would almost certainly be treated as a benefit in kind and you would be personally liable for any additional taxation due.

Why does how I claim matter? How you claim your expenses has always made a difference, we have often been asked whether it makes any difference if expenses are processed at year end by an Accountant, rather than “as you go”? It does make a difference and it can be a significant one and it’s all because of the position concerning National Insurance. When you claim at the end of the year the tax position of the pay you received, to the value of your allowable expenses, is reclassified as non-taxable and the tax you paid on that amount can be paid back to you, however you can’t do that with National Insurance. Once National Insurance is paid, whether by us or you, it’s gone and neither you nor your Accountant can get it back.

How are claims processed? In order for your expenses to be guaranteed to be processed that pay week the expense claim form should reach Payco Services by Tuesday 10am.