Contractor Umbrella - Expenses Explained

As an employee of Orange Genie Umbrella you can claim for certain expenses that you incur in the course of carrying out your work. We can reimburse you for some of these expenses, while others can be claimed through HMRC.

Reimbursable business expenses:

Reimbursable business expenses can be paid to you without deductions for Income Tax or National Insurance. For example, if your total employment income from us is £1,000 and you have legitimately claimed £400 expenses, £600 will be paid as taxable income and £400 as expenses, which are not taxed.

Typically, reimbursable expenses include:

  • Mileage costs for one off or non-commute journeys.
  • Relocation costs, including flights, luggage and temporary accommodation.
  • Work related training costs.

Business expenses do not include:

  • A private/personal expense
  • Ordinary commuting
  • An expense that has not been incurred

Travel costs:

If your client has the right to supervise, direct or control your work, travel to your normal workplace is considered to be normal commuting, and is not an allowable expense. You may still be able to claim for travel if you’re a mobile worker, or if you’re making a one-off journey to a temporary work place. Our contractor support team will discuss your circumstances in detail to make sure you claim correctly.

We can only reimburse for travel expenses as mileage travelled in your own vehicle. If you travel in any other way, this will be a recordable expense.

Recordable expenses:

There are some expenses which cannot be reimbursed in the way described above. You can still submit these expenses to us and we'll record the information to provide to you at the end of the tax year. You may be able to claim tax relief on these expenses through HMRC.

Recordable expenses must be things that are used solely and exclusively for your work, and which you don't use in your private life. You must keep records of what you've spent, and claim within 4 years of the end of the tax year in which you spent the money.

For details of expenses that you can claim tax relief on through HMRC, please visit https://www.gov.uk/tax-relief-for-employees/overview


If you have any questions about expenses claims please call 01296 468 483 or email umbrella@orangegenie.com.

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