Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Claiming Everyday Expenditure: Know How’s of an Umbrella Company

By Ed Lebbon Subscribe to RSS | January 5th 2012 | Views:

Freelancers, self-employed or contractors always have issues regarding claiming their tax back for the expenses they have incurred. Well simply doing so not only maximizes the actual “take-home” pay they are entitled to but it also minimizes the tax bill each contractor gets. Now if these are done legally of course it would not be deemed as being “tax-avoidant”. Knowing tax and self-employed individuals, the HRMC has strict controls and regulations on costs incurred and expenses that can be claimed which should be exclusively, necessarily and wholly scoped by the work a contractor has. Tax officials make sure of this by legally acting out a detailed investigation of self-employed, freelancers or contractors accounts. Expenses claimed made by contractors are also included in the investigation.

So how does one assure that they are tax-efficient and by all means are clear of evading tax from the tax officials? The easiest solution is to work your taxes and your salary through an umbrella company. The first step is easy. Just provide them with a detailed documentation of how you much earn, how much you spend on business expenses and the like. It is of prime importance that in reimbursing expenses a contractor keeps records and receipts of expenses said to be incurred in a minimum of five years. Knowing this, what exactly are the items included under expenses that can be claimed from working through umbrella companies?

Number one on the list of expenses a contractor can claim would be travel and mileage expense. If you have your own vehicle, then you can claim for mileage expenses when you travel to and from to work. Traveling in another person’s car or all forms of travel can be expenses that can be claimed as long as these travels are associated with the business or the work a contractor is involved in. Travel rates being really expensive can also be claimed as expenses given that VAT receipts are provided. VAT receipts should also be given in terms of fuel consumption for mileage expense.

Next on the list of claimed expenses would be accommodation and meals. Such expense is termed by an umbrella company as “Dispensation”. Doing so allows each contractor to claim for meals that have incurred costs given that there is a receipt. These receipts however are no longer needed to be sent out to umbrella companies. For those contractors staying far from home during business trips can easily claim accommodation expense plus meals.

Clothing and equipment given that these are associated with the work are also filed under expenses which can be claimed. There would be a description for each of course. Equipment such as clothes that are under the term “protective clothing” meaning those that are not the normal day attire worn in casual or formal settings. Tools on the other hand are those used exclusively for the work alone. Gadgets may be included given that these are particularly important or vital to the business. Gadgets would include phones used for business calls.

Another additional expense a contractor can claim would be memberships and journals. Given that these memberships are for professional associations then there are instances where allowable expenses are given. However before a contractor should start on the membership, the HMRC has provided an all-inclusive list of associations available for claiming expenses when it comes to membership fees.

Take note that expense claims that are provided with actual and factual receipts are legitimate claims. Of course as long as these expenses are associated with the work. These allowable expenditures are one way for contractors’ tax bills to be greatly reduced. Contractors must remember that keeping records and claiming expenses that are genuinely incurred as part of their job are fairly essential. It can be a headache for the self-employed which is why Access-a is the solution to giving you the service of an umbrella company that is sure to make anyone 100% tax-efficient. Access-a is the only place contractors need to visit to be fully geared up on tax issues and taxation.

Ed Lebbon - About Author:
Ed Lebbon is the owner of Access-a Umbrella Company, Access-a is an umbrella company offering the benefits of a limited company without the administration or statutory responsibilities.
To know more about Umbrella Company visit our website

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Article Marketing Articles Subscribe to RSS

Before you set up an E-commerce website, be sure to get the right Malaysia web design company to help you out.
Published by Jack on June 14th 2012 | Business
The E-commerce industry in Malaysia is now emerging stronger and faster than ever. Malaysia is one o...
Best reseller webhosting company – right cradle to care for your website
Published by Genevieve Ackles on December 31st 2011 | Business
The digital age we are thriving in has led us to think on continuous performance improvement strateg...
Get a Absolutely free the apple company I pad Just for Examining It!
Published by Wendy Leung on December 13th 2011 | Business
There are people who neglect out on the capability to be a fanatic for Apple's solutions whenever th...
Why you should choose RSC for your company’s Risk Assessments?
Published by Risksafetyconsultants on April 12th 2012 | Business
Health and safety consultancy Sheffield consists of experts having years of experience in the field....
IVR survey strengthen the relations between customer and company
Published by Snooozy on March 9th 2012 | Business
In the time of huge competition every company wants to have strong relations with its customers. Thu...
Limited company advantages: the greatest defense for a business owner
Published by Crowin Smith on February 13th 2012 | Business
The business laws that govern the world of business have to be understood properly before taking fur...
How to Locate the ideal company that Present SEO Services Manchester
Published by Darrell Fore on May 29th 2012 | Business
Search engine optimization or SEO is an critical marketing and advertising strategy utilised by busi...
Reduce company overheads by incorporating your company offshore
Published by Ademholt on July 11th 2012 | Business
Are you looking to reduce company overheads?
Did you know setting up and offshore company can le...
Eco friendly Promotional mugs and pens for your company’s marketing
Published by Julia Roger on July 12th 2012 | Business
There are a few that can be filled again whereas others contain nice smelling fragrances pooled with...
Get complete IT solution only at ePixel web design company India
Published by Epixeltechnologies Tech on December 1st 2011 | Business
ePixel Technologies is a fast growing and leading PHP web development India. Website is way to get m...
Best qualities for moving company Regina
Published by Richard on August 5th 2012 | Business
Your belongings are the most important things for not only you but for the moving company Regina too...
What are the Legal Requirements of Singapore company registration?
Published by Andrews Thomas on January 25th 2012 | Business
There are some easy requirements that the business owners should meet for Singapore company registra...
What to look for in a Stage Hire company
Published by Mary Porter on July 25th 2012 | Business
Try to relax when you think about a Stage Hire, forget all those things that went wrong when you hir...
Assure your company’s growth with competent marketing consultants
Published by Marketingspace on May 14th 2012 | Business
Undertaking promotional activities to advertise various products is an essential thing for any sort ...
Upfront Consultants one of the best company, that provide in Orange County SEO services.
Published by Laptop Repair on March 14th 2012 | Business
Orange County SEO famous due to its unique quality in all over it many other companies also provide ...
Best moving company with unparallel network and competitive price
Published by Ankita Gupta on December 30th 2011 | Business
Here you are at best packing and moving company. You will get loading and unloading services, wareho...
What to do and what not to do being a marketing company?
Published by Marketingspace on July 12th 2012 | Business
Becoming a marketing company associate is a fruitful way of earning money via internet sources. You ...
Great service by a reliable packing and moving company
Published by Ankita Gupta on January 12th 2012 | Business
Packing and moving has become regular part of our life. We are constantly moving from one city to an...
When you are to choose forklift hire company
Published by Glyn Spyke Jones on May 8th 2012 | Business
Hiring the forklifts is the best alternative if your own forklift is not working due to some breakdo...
Get thermal insulation materials by a reliable company
Published by Christy Jackson on April 30th 2012 | Business
The article is based on the thermal insulation materials offered by the retailers. It talks about th...