It used to be the case that if you worked through an employment solution and you intended to undertake multiple assignments then you would be able to claim tax relief on your travel and subsistence (T&S) expenditure.
However, on 6th April 2016 new legislation was brought in to restrict T&S tax relief. The relief was deemed to be unfair because staff employees who work alongside contractors cannot claim the same tax advantage.
The new rules will prevent a majority of workers who use the Champion employment solution from making T&S claims.
What does this mean for me?
It was not the intention of the new rules to discriminate against genuine freelance contractors and therefore HMRC do appreciate there are some workers who should still be able to claim their T&S expenses.
To be able to claim any expenses you will need to be able to demonstrate that you are not considered to be under Supervision, Direction or Control (SDC) of any person (working for the client or agency) in the manner in which you undertake the assignment.
To assist you to clarify your SDC status, Champion have developed a robust assessment process that will be issued to you as soon as your assignment has commenced.
If you are able to pass the assessment then you will be able to claim all T&S expenses that are deemed ‘wholly, exclusively and necessarily’ to fulfil the terms of your assignment.
How do I know if I can claim?
Once we have reviewed your SDC assessment, we will communicate the result to you via email. This will occur within 48 hours of you submitting the information to Champion.
If you are able to claim your expenses then we will issue you with a full guidance pack to confirm your entitlements and the process we need you to follow when claiming.
How will my expenses be paid?
If you are incurring mileage then this will be calculated and processed within your pay on a weekly/ monthly basis.
If any other T&S expenses are incurred then these need to be claimed at the end of the financial year via a Self-Assessment Tax Return or P87. Champion will provide support with these claims.
If I can claim will I need to keep receipts?
Yes. It has always been the case that you should be able to provide evidence that a cost has been incurred for each expense.
For further information on expenses you can access our online expense form or read our guidance documents here.