Claiming your expenses is quick and easy with Clearwater Umbrella!
The best way to submit your expense claims, together with your timesheets, is online using our web portal My Clearwater. This allows you to enter your expenses and the supporting receipts instantly, so we can approve and process them as quickly as possible. They’ll then be available to pay on your next payment.
Clearwater Umbrella operates its expense policy in accordance with HMRC legislation, so you can enjoy the maximum benefit and remain fully compliant. All expenses must be incurred and supported by the relevant documentation as proof of purchase, even though you may not always be required to supply this to Clearwater Umbrella at the time your claim is made.
Types of Expenses :
There are three different categories of expenses that you need to know about and each are treated differently for the purpose of your pay. These are as follows and explained in more detail below :
When starting a new assignment with Clearwater Umbrella, we will assess the value of expenses you expect to incur whilst carrying out your assignment, together with your expected hours and contract value. This ‘budgeting’ exercise allows us to ascertain the projected contract/ project profit and your expected salary, as well as the Budgeted Expense rate (per hour). For each hour you work thereafter, you will accrue Budgeted Expenses and when you actually incur a valid Business Expense, these can be reimbursed to you, with your wages, from the accrued expense budget or “pot”.
Therefore it is vital that we set the Budgeted Expense amount as accurately as possible, so that you can maximise the amount of Business Expenses that can be paid to you without deducting tax or national insurance.
Business Expenses are costs incurred by you in the course of your day-to-day assignment duties. Clearwater Umbrella deducts your Budgeted Expenses from the money received for the work, you undertake on our behalf, to calculate the profit from the assignment and your taxable salary. When you claim your Business Expenses, they are reimbursed to you without being subject to tax or NIC and up to the value of the total Budgeted Expenses accrued at the time of payment.
These expenses are paid with your taxable income and increase the net payment you take home.
Golden rules for claiming Business Expenses:
Billable Expenses (sometimes referred to as rechargeable expenses) are the costs incurred during your assignment which your end client or agency have agreed to reimburse you for in full.
These can include a wide range of expenses and it is important that all Billable Expenses have been clearly agreed with your client or agency before the start of any assignment (usually within your assignment contract).
Golden rules for claiming Billable Expenses:
You must be in agreement with your Agency/End Client on which Billable Expenses, if any, can be claimed whilst in contract. If you claim something you are not entitled to your Agency may reject the entire invoice which will delay your payment.