Expenses claimable through your weekly or monthly payroll

The rules that determines whether you can claim expenses as a tax deductible is covered by the “temporary workplace” legislation.

A temporary work place is a workplace where an individual intends to be (or in the general vicinity, e.g. ‘the City of London’) for less than 24 months, or alternatively for less than 40% of their total working time.

In the event that your workplace is considered to be temporary then AMUK can reimburse the following expenses weekly/monthly.

1. Home to work travel
2. Rental costs at temporary accommodation
3. Subsistence Allowance in the UK and Overseas
4. Personal Incidental Expenses in the UK and Overseas
5. Business use of home and/or mobile telephone
6. Business Entertaining
7. Business internet use

Although we do not require receipts for these expense claims we do suggest that you hold onto all your receipts for your records.

1. Home to work travel

If you use your own car to get to work, then the following amounts can be claimed for your business miles: -
Annual business mileage up to 10,000 miles 40p
Each additional business mile over 10,000 25p

The above rates are set by the Revenue & Customs at the start of each tax year and are intended to compensate you for the cost of fuel, insurance, tax, maintenance and depreciation. The figures do not, however, include the cost of parking, which can be claimed as an additional expense.
Claims for business mileage using your own car, must be submitted on the appropriate AMUK claim form.

2. Rental costs at temporary accommodation

You will need to supply the rental agreement as well as receipts where possible.

3. Un-receipted Subsistence Allowance

In the UK :

Overnight Subsistence:
Bed and Breakfast Allowance
London - £100.00
Elsewhere - £ 85.00

Allowance for other meals:
London - £25.00
Elsewhere - £20.00

Saying with friends/relatives - £30.00

Daily Subsistence:

	London	Elsewhere (UK)
Overseas
Breakfast (before 07.30am)	£8.00	£7.00	Actual Cost (receipted)
Lunch	£9.00	£8.00	Actual Cost (receipted)
Evening Meal (after 18.30pm)	£17.00	£15.00	Actual Cost (receipted)
Total	£34.00	£30.00	Actual Cost of appropriate meals (receipted) or £35 per day to cover the cost of breakfast, lunch and the evening meal.

4. Personal Incidental Expenses in the UK

Includes newspapers, laundry and telephone calls to a maximum of £5.00 per night.
Personal Incidental Expenses Overseas
Includes newspapers, laundry and telephone calls to a maximum of £10.00
per night.

5. Business use of home and/or mobile telephone

The payment or reimbursement of telephone call charges in respect of business telephone calls made by office holders from either their home; personal mobile; public call box or overnight accommodation telephones. The cost of private calls, equipment and line rental are specifically excluded.

The cost in respect of the costs incurred in installing dedicated business lines in Employee’s home along with the call rentals thereon.
Any use of the dedicated business lines for private use will mean that the full rental costs will immediately become taxable.

6. Internet Access

With the cost of you providing Internet access where a phone or Internet line is also used partly (but not significantly) for private reasons, then no relief for the cost of the rental can be claimed and only the appropriate business use proportion of calls is allowable.

7. Business Entertaining

The actual reasonable cost of entertaining on a genuine business occasion, proving that a client, supplier or other business connection from an outside organisation is present.

Examples of business occasions, which can be covered are:

Lunches etc for customers or potential customers at which business is discussed
Product launches etc for customers, potential customers, suppliers and professional advisers where business is discussed
Entertaining at exhibitions etc at which products are on display for customers

Entertaining Expenses not covered:

Entertaining personal friends or business acquaintances where there is no business obligation to entertain them
Reciprocal entertaining between business acquaintances
Entertaining colleagues and/or employees of the same organisation
Entertaining occasions when there is no customer, client, supplier or other business contact present

Additional costs relating to spouse, partner or family accompaniment.

Other expenses claimable through your weekly or monthly payroll.

Training costs

AMUK employees are not taxed on the payment or reimbursement by us of work related training. This includes not only direct job related training but also training in health and safety and to develop leadership skills. The tax exemption also includes learning materials, exam and registration fees. Travelling and subsistence incurred in attending training courses is also allowed to the same extent that they would be for employment duties. As it is often difficult to determine whether a course is work related or not, we recommend that you seek advice from your account manager before committing to the course.

Professional subscriptions

Certain subscriptions and professional fees can be reimbursed as a tax deductible expenses. The Revenue & Customs publish a list of bodies that are approved for this purpose. This regularly updated list can be found on the web at www.hmrc.gov.uk/list3/list3.htm.

Work clothes

The Revenue & Customs do not allow tax relief for work clothes, where they can have a dual purpose. For example the cost of purchasing a suit for work is not tax deductible because it can be worn for social or domestic occasions. In reality, there are very few instances where work clothing may be tax deductible. If you consider that you may have a claim that will pass the ‘dual purpose’ test, please discuss the matter with your account manager before making the claim.

Employees working overseas

Tax relief for costs incurred by an employee travelling to and from their overseas workplace is also available provided the employer reimburses the employee for the cost. In addition, reasonable reimbursed hotel costs (including meals) may be claimed as tax-free. The actual cost of appropriate meals can be claimed or £35 per day to cover the cost of breakfast, lunch and evening meals. The employer may also pay for up to two family visits per year, provided the overseas assignment exceeds 60 consecutive days. Tax relief is also available for the cost of medical treatment abroad, and insurance against such expenses.

Non-UK domiciled individuals working in the UK

Costs incurred in travelling to and from the UK, by non-UK domiciled individuals working in the UK are subject to tax relief provided the costs are born by the employer. Reasonable hotel costs (including meals) may also be reimbursed tax-free. In addition, the employer may pay (on a tax-free basis) for up to two family visits per year, provided the UK assignment exceeds 60 consecutive days. The employee will also be entitled to tax exemption for the cost of any inoculations or visas required as part of coming to the UK.