Contractor Expenses

Some of the most common questions James is asked by his clients are around expenses and if they can claim a cost, as a business expense.

In this section James has written a number of guides to help you understand how expenses work and what you can or cannot claim.

For more advice on expenses or contracting please call us on 01442 795100 or email Sophie.lewis@dolanaccountancy.com.

The pages

Can I claim for a Christmas Party?

If you want to treat your hard working staff to a Christmas party, you could claim this back as an expense, as long you follow certain rules, such as ensuring you keep it at no more than £150 per head and invite every member of staff.

Can I Claim for Training Costs?

If you want or need to take on additional training in order to develop your skills, then you might be able to claim this as an expense. However, you will need to ensure that any courses you take are related to your line of work.

Childcare Costs

Thanks to recent changes, contractors are now able to partake in the new Tax Free Childcare scheme. This means that the government will top up a childcare account with 20% – so for every £8 paid in, you will receive an additional £2 for free.

What Travel Expenses can I Claim as a Contractor?

If you need to travel anywhere for work purposes, then you will be able to claim back certain expenses. These include mileage, public transport, subsistence and accommodation costs.

Can I Claim for my Work Clothing?

If you need to purchase specific types of clothing for work, you could claim back on some of these items, however, they must be essential to your line of work, such as protective clothing for your safety.

Charity, Entertainment and Sponsorship

A contractor will be able to claim back on costs spent on charity donations, business entertainment and even sponsorship, however, you will need to adhere to certain rules in order for these to be legitimate expenses.

What can I Claim if I Work from Home?

If you work from home, you will be able to claim back certain expenses that are wholly and exclusively for your business. This includes office equipment, as well as the running costs of an office, such as the rent and utility bills.

What is the 24 Month Rule for Expenses?

The 24 month rule is designed to clarify the extent of travel and subsistence expenses a contractor can claim back on when travelling and working at a client’s place of work.