Contractor Expenses
Contractors incur costs for a variety of things in the course of their work. These costs can be claimed as expenses however there are rules as to what contractors claim for as expenses. Below is a list of valid business expenses.
Valid business expenses:
Accommodation – Many contractors have to travel on a regular basis and are often required to stay in a hotel or bed and breakfast. Typically there are no set allowances for accommodation but the cost must be deemed as reasonable if it’s going to be claimable.
Training – Business expenses can be claimed for training as long as the training solely relates to a contractors work.
Pensions – Pensions are still one of the few remaining tax breaks available to contractors. Contractors can invest part of their income into a company pension scheme. Paying into a pension means that contractors save on income tax.
Travel Expenses – Contractors can claim the cost of travel to and from their temporary place of work. Travel expenses typically cover fuel and running costs of a vehicle.
Contractors should remember to keep all of their receipts and regularly keep in contact with their accountants about expenses.
