Contractor Expenses

Q. I’ve been paid off from my last job and work on contracts mostly, I was PAYE on my last job and now unemployed. I worked away from home a lot and had to pay for everything out of my own pocket , is there any way I can recoup any expenses that I incurred?

A. If you were operating under the PAYE scheme in your previous role, what you can actually claim back as expenses is restricted.

The expenses you have paid for from your own pocket must have incurred as a result of carrying out your duties and furthermore occurred when working at a temporary site.

If you incurred mileage expenses and your employer had reimbursed you for a portion of the expense, you can claim back the remaining mileage expense by submitting a P87 form to the HMRC who will amend your tax code accordingly.

You may be able to claim tax relief on the cost of money you’ve spent on food and overnight expenses, called “subsistence”, however  once again these expense must have occurred whilst working at a temporary place of work and not where you would travel to every morning to carry out your primary function.

Please click on the HMRC guide below for further information.

www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses

This answer is provided by Qdos Accounting.

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