Travel expenses need three-step rule

There are three different sets of criteria for contractors'' travel expenses.

Contractors using umbrella companies need to know about the three different areas that travel expenses can fall into and ensure that their claims are accurate and thought out, according to an expert.

Bob Jones, founder of expenses and tax advisory internet-taxation.co.uk, told ContractorUK.com that travel expense claims can vary depending on where and when people are making a journey.

Firstly, travel in the performance of the duties of the employment, secondly, travel to temporary workplaces and finally, residents of the UK working outside the UK/non-domiciled foreign residents who work inside the UK.

"The question posed [by some claims] is one where the travel expenses are not in the performance of the duties, making it necessary to consider whether the workplace is a temporary workplace," he said.

Mr Jones added that if travel to a temporary workplace is short then expenses are restrictive, whereas if it is some distance away then accommodation costs can also become part of the equation.

Daily Commercial News recently reported that legitimate contractors can benefit from expenses legislation.