A brief summary on claiming expenses within FCSA guidelines
Tax Relief Expenses
Tax relief expenses are no longer automatically claimable due to changes in HMRC regulations. If your contract falls under SDC (Supervision, Direction and Control) you no longer can claim for any expenses through the Umbrella at all. If your contract is deemed as within IR35, then SDC automatically applies.
NASA Umbrella no longer process tax relief expenses via payroll, however you can complete a P87 form or self-assessment with HMRC in order to claim back tax relief on genuine business expenses. It is wholly HMRC's decision whether or not this is processed. Nasa are not able to assist with P87 forms, however we do offer a stand alone self assessment service. Please get in touch if you'd like more information
Mobile Mileage
Mobile Mileage is only claimable if you travel to multiple, temporary client sites within your working week and use your own vehicle.
Although we will not be able to process this via your payroll directly, you'll be able to claim this from HMRC directly via a P87 or Self-Assessment.
Reimbursed Expenses
Reimbursed expenses are costs incurred during the course of your assignment. They
typically refer to expenses that were initially paid by you with the understanding that the funds will be reimbursed later. These costs must be wholly and exclusively incurred in the course of business, and must be specific to your role.
Your End Client or Agency will reimburse you based on their internal expense process and funds will usually be paid to us alongside your working hours.
In order for us to process reimbursed expenses in full (without tax or national
insurance contribution deductions) we are required by HMRC and the
FCSA to check all expenses to ensure they are allowable and can be repaid in full.
Whilst your End Client will process the claim - the responsibility lies with NASA to
ensure that the claim is genuine and allowable to be paid to you tax free.
Please note that tax free client reimbursed expenses cannot be claimed for
commuting to your workplace. The claims must be for irregular or
extraordinary journeys only. If they do not fall into this category, they will be paid to you with PAYE applied.
Commuting refers to the regular travel between an individual's residence and their
place/s of work or business. When it comes to reimbursed expenses, commuting
typically refers to the costs incurred during the daily travel to and from work.
It is important to note that commuting expenses are not eligible for tax free
reimbursement, as they are considered personal expenses rather than business-
related expenses.
Reimbursed expenses generally refer to costs incurred while conducting business activities, such as travel expenses for business trips, meals during work-related
meetings, or ad hoc one-off expenses such as stationery.