Claiming Expenses

Expenses claimed must be submitted on a weekly basis. Any expenses received will be processed by ourselves in accordance with current HMRC guidelines and if allowable, offset against your gross earnings for the relevant period.

If you are registered and paid through CIS then there is no need to submit expenses claims to Bar 2 on a weekly basis. Instead, you claim back the tax relief on any expenses incurred through a self-assessment return at the end of the tax year.

Allowable Expenses

The guidelines laid down by HM Revenue & Customs state that expenses claimed must be incurred wholly, exclusively and necessarily in the performance of your duty. There are strict rules in place which determine what you may claim and the Bar 2 expenses team are required by HMRC to validate that only legitimate expenses are claimed for. All claims are scrutinised and incorrect claims will be rejected.  It is important to understand that many of the expenses you are allowed to claim are allowable only because you become an employee of the Umbrella Company.

The Bar 2 Umbrella Company has been granted a dispensation from HMRC to simplify processing the large number of expenses claims we deal with on a weekly basis.  You must always be in a position to substantiate claims that you make and you should always either submit receipts or retain them for a period of 7 years.

Regardless of whether you are paid through the Umbrella Company or through CIS, it is important to remember that any expenses claimed must have been genuinely incurred during the course of your employment. False claims can result in an additional tax liability.

Submitting Expenses Claims

The process of claiming expenses is straightforward - you simply need to complete, sign and send us your claim form 48 hours before payment is due. We will then guarantee that they are processed and included in the calculations for your take-home pay.

Completed expenses claim forms can be submitted in one of four ways:

online:                                                  Call us to set up site access

by post to:                                            Unit 4, Century Court,
                                                            Moor Park Industrial Centre,
                                                            Tolpits Lane, Watford WD18 9RS

by fax to:                                              0845 838 1642

by email to:                                 

What expenses can be claimed?


You can claim the cost of travel to and from your temporary place of work. Mileage rates are 45p per mile for the first 10,000 miles in any financial year and then 25p per mile thereafter. This allowance includes the cost of fuel and all running costs of the vehicle e.g. road tax, insurance and servicing. Therefore, any additional claims for maintenance and repair are not permitted.

The cost of travel by public transport can claimed but you must have a valid receipt or ticket for the journey.

A mileage allowance can also be claimed for travel by motorcycle at 24p per mile and Bicycle at 20p per mile.

The cost of a hire car can be claimed along with the amount spent on fuel. However, due to the mileage rate including amounts for road tax, insurance and servicing, the 45p per mile cannot be claimed.

If you incur a cost for parking, road tolls or congestion, whilst working on a particular contract, the cost can be reimbursed.

Additionally, the cost of parking your vehicle whilst at work can be claimed.

Professional subscriptions ­

The Inland Revenue will permit you to claim the cost of fees and subscriptions paid to professional bodies or learned societies. A full list of the allowable subscriptions can be found at


The reasonable and necessary cost of a meal/snack and beverages can be claimed as an expense. The rates applicable are:

Breakfast - up to £5

This can be claimed when you have left the house earlier than usual, before 6am and incur a cost for breakfast that you would have otherwise had at home. If you usually leave the house before 6am then this allowance does not apply.

One Meal (5 hours) - up to £5

This can be claimed when you undertake work away from your home for a period of at least 5 hours, inclusive of travel to and from the work place.

Two Meals (10 hours) - up to £10

This can be claimed when you undertake work away from your home for a period of at least 10 hours, inclusive of travel to
and from the work place.

Late evening meal

A rate of up to £15 may be claimed when you have had to work later than usual, finish after 8pm and incur the cost of a meal you would usually eat at home. If you usually finish later than 8pm this allowance does not apply.

Incidental overnight expenses

An additional amount of £5 per night for overnight stays anywhere within the United Kingdom or £10 per night for stays outside of the United Kingdom can be claimed.

Secondary Accommodation Costs

The receipted cost of Hotel or Bed and Breakfast accommodation can be claimed as an expense.

If you are renting a secondary property to enable you to be closer to a site this can be claimed with evidence of a
receipt or invoice.

Protective Clothing

The cost of protective clothing that is worn to protect your everyday clothes can be claimed as an expense. If specific clothing is required to do your work and could not reasonably be worn outside work, this can also be claim.


If a training course is totally necessary, relevant to the performance of your current contract and you incur a cost, the
cost of the course can be claimed.

Tools and Equipment

If specific equipment is totally necessary and relevant to the performance of your current contract and you incur a cost,
the cost of the equipment can be claimed.

Ways to claim:


Expenses can be claimed online through the "Expenses Portal" and must be submitted at least 24 hours before payment is due
to guarantee them being allocated to a payment. If claims are not received in time they will be added on to the next payment.


If expenses are claimed in this way the form needs to be received in the office at least 48 hours before payment is
due. If the claim form is received later than 48 hours before the payment then the claim may need to be added to the next available payment.

Please remember that claiming for expenses that you have not genuinely incurred will be viewed by
the Inland Revenue as tax avoidance. Everything you claim must be substantiated with the relevant receipts. All of your expenses will be checked and should anything you claim not be permitted by the Inland Revenue, it will be

You must always be in a position to substantiate expense claims for up to 7 years from the date they were submitted.  We will keep these records for you securely at no charge.

If you have any questions relating to your expenses claim, please call our Customer Care team on 0845 838 1641.