Umbrella Company Expenses

Contractors can off-set legitimate business expenses against their tax bill.

Umbrella company expenses can be confusing, so if you have any doubts or queries about what you can & cannot claim, please ask! It's better to be safe than sorry.

Because you're using an umbrella company service you are able to claim expenses. You may not know what sort of business expenses you can claim.

Always keep in mind that you can only offset expenses that you have incurred wholly, exclusively and necessarily in the performance of your duties.

Offsetting expenses against your tax is another key advantage of the umbrella company service. It will always be your responsibility to make sure you stick to this rule and only claim for things that are allowable for tax purposes.

To Bill or Not To Bill

Billable expenses are reimbursements for costs incurred by you and paid to your umbrella company by your recruitment agency over & above your invoice for hours/days worked. The type of expense(s) will determine if it can be paid before tax.

Non-billable expenses are costs incurred but not charged to your agency or client as an extra. Most of your umbrella company expenses are non-billable.

HMRC may choose to look through your expenses if they think otherwise. If they can show you have claimed wrongly or for non-allowable items you'll have back-tax to pay.

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