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Can I claim back my mileage, subsistence and hotel costs?

Q. I have been contracting for a number of years but am now taking on a role which puts me on the payroll of the company I am working for. Under my contract with them (6 months) all expenses are my own responsibility and this role is classed as temporary. I have been told that you can claim mileage, subsistence & hotel costs incurred which are not reimbursed and offset this against your tax return value of deductions allowable based on your tax rate ie a tax payer at 20% would get 20% of their unreimbursed costs.

 I have looked through the internet and what I find seems to be ambigious, grateful for your thoughts.

A: Should you decide to accept a PAYE position with the company you are currently contracting for, you can claim any mileage, subsistence, and hotel costs incurred in the performance of your duties only when your employer does not reimburse you for these. These can be deducted on preparation on your self-assessment tax return prior to tax being calculated and your return ultimately submitted to HM Revenue & Customs.

For example your gross earnings per your P60 are £50,000, however you have incurred £2,000 worth of expenses during the year. The taxable income with therefore be £50,000 less £2,000 less any personal allowance available to you, prior to tax being applied.

By Qdos Accounting


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2 thoughts on “Can I claim back my mileage, subsistence and hotel costs?”

  1. Shankar Ramamoorthy

    Hi, Does this have any hidden clause that the workplace should not be the only place of work for this tax benefit to apply? Where is this rule/law mentioned in HMRC rules? Please advice.

    • Qdos Accounting

      You can only claim subsistence costs whilst you are working at a remote site, away from your normal place of work or when staying away from home overnight.

      When your work situation obliges you to ‘eat out’, or when you cannot get home to eat, you may claim the meal expense per the actual receipt amount or alternatively you may claim a subsistence allowance per HMRC’s Benchmark Scale Rates.

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