Aside from any “client rechargeable” expenses that are incurred on business trips, general business expenses can also be legitimately claimed to reduce your tax and NI liabilities. This is because when you are engaged on a contract on a temporary work site, you are deemed to be working away from your employer’s permanent work location (in the case of Parasol, this is our registered office).

There are other conditions around being able to claim expenses and we go through these in full with a Contractor to ensure they are well informed.

For contractors using Umbrella Companies 'Schedule E' expenses can  also be claimed and some companies such as Parasol offer 'expense dispensations’ that save time with administration (but should not allow expense claims that are not actually spent).

For those contractors using a Personal Service Company falling within IR35 legislation, there is a 5% general allowance for expenses instead of an unlimited allowance.You can still claim 'Schedule E' expenses, such as subsistence and mileage payments in addition. Whilst possible, it is not common practice for the Personal Service Company to have a dispensation, therefore Contractors must keep all receipts and ensure a P11D (tax statement of expenses and benefits) is completed each tax year.