Claiming Expenses
This section covers travel and expense payment procedure and is for contractors and temporary workers.
Expense Claim Forms
HSR expense forms can be found on the internet. You should ask the client whether to use their expense claim form or use the HSR expense claim form. Expense claim forms MUST always be signed by the client and worker and be stapled to his or her timesheet. The total £ value of the claim MUST be entered on the timesheet.
Click here to get a copy of the expense claims form.
Click here to view a sample completed expense sheet.
Rules and regulations for the mileage and expense claim form
Mileage for PAYE/LTD - in accordance with individual client agreement, mileage can be claimed as a non-taxable element for rates up to 40p per mile. This is in line with the current HM Revenue & Customs legislation. This rule applies for the first 10,000 miles per tax year.
If this figure is exceeded, then only the first 25p per mile will be paid as a non-taxable element and thereafter the excess will be subjected to tax and NICs. A total accumulated mileage figure per tax year should always be completed on the claim form to assist with the above calculation.
All journeys must be of a site-to-site basis and must not include mileage from home to your normal place of work or returning from this point to your home address. If in the rare event you do not have a usual place of work and this differs on a day-to-day basis, then mileage can be claimed from your home address.
Details of all journeys claimed for must be outlined on the form. Petrol receipts must be attached and total at least to the value of the claim. A mileage rate must always be agreed to quantify the claim. It is not acceptable to just claim directly from a receipt as we are unaware how much fuel was used. In cases where no mileage rate is agreed and a receipt is signed off, the claim will be subject to PAYE. No client authorisation letter is required prior to payment.
Workers are able to claim tax relief through the HM Revenue & Customs on the difference between their mileage rate (if below 40p per mile) and the 40p threshold. This is completed on a self assessment tax return.
Parking and toll payments
When these kinds of expense are incurred for business purposes, receipts should be attached wherever possible.
Rail Fares
Once again, the expense claim form must be completed and details of the journey outlined. A receipt MUST always be attached to the form.
Hotel and lodging expenses
All lodging expenses need to be shown on the form and a receipt MUST be attached to validate the claim for reimbursement.
LTD companies and VAT
When a worker submits a claim form and is working via a Ltd company that is VAT registered, the VAT element must be shown separately on the invoice.
Hays will process the expense claim net of VAT. VAT will be added to the payment and subsequently displayed on the remittance. Hays will then recover the input VAT from HM Revenue & Customs. The above process also ensures that the client is not then charged VAT on a claim that already includes VAT. The temporary worker/contractor and the client MUST sign all expense returns.
If you have any further queries, contact HSRPayrollsupport@hays.com.
