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Payroll Guidelines

Use the below links to access important payroll information:

Rules, Regulation Mileage & Expense Claims

In accordance with individual client agreements, mileage for PAYE/Ltd co. can be claimed as a non-taxable element for rates up to 40p per mile. This is in line with the current HM Revenue & Customs legislation. This rule applies for the first 10,000 miles per tax year. If the rate is greater than 40p, then the difference is subject to PAYE/NIC.

Once you have exceeded the 10,000 miles then only the first 25p per mile will be paid as a non-taxable element and thereafter the excess will be subjected to tax and NICs.

A total accumulated mileage figure per tax year should always be completed on the claim form to assist with the above calculation.

All journeys must be of a site-to-site basis and must not include mileage from home to your normal place of work or returning from this point to your home address.

If, in the rare event you do not have a usual place of work and this differs on a day-to-day basis, then mileage can be claimed from your home address.

Details of all journeys claimed for must be outlined on the form.

A mileage rate must always be agreed to quantify the claim. It is not acceptable to just claim directly from a fuel receipt as we are unaware how much fuel was used for business purposes. In cases where no mileage rate is agreed and a receipt is signed off instead, the claim will be subject to PAYE & NIC deductions.

No client authorisation letter is required prior to payment.

You are able to claim tax relief through the HM Revenue & Customs on the difference between the mileage rate (if below 40p per mile) and the 40p threshold. This is completed on a self-assessment tax return.

Parking & Toll Payments

When these kinds of expenses are incurred for business purposes, receipts must always be attached to the claim form.

Rail / Taxi / Bus Fares: The expense claim form must be completed with details of the journey outlined. Receipts must always be attached to the claim form.

Hotel & Lodging Expenses: All lodging expenses need to be detailed by Name of Lodging on the form. Receipts must always be attached to the claim form.

Telephone Charges: The cost of business telephone calls made from home or your mobile is deductible and can be claimed as a business expense. You must provide a detailed statement highlighting the business calls from the personal calls. If you cannot provide a detailed statement then the telephone calls will have to be paid as an allowance, which is subject to PAYE/NIC.

Other Expenses: If you have any further expenses that fall outside the main types above, please complete the description of what the expense you are claiming relates to and enter in the 'Other Field'. Receipts must always be attached to the claim form.

Limited Companies & VAT

When a contractor submits a claim form and is working via a Limited Company which is VAT registered, the VAT element must be shown separately to the Net (excluding VAT) on the claim form. Hudson will process the expense claim net of VAT. VAT will be added to the payment at the time of processing and subsequently displayed on the Invoice. Hudson will then recover the input VAT from HM Revenue & Customs. The above process also ensures that the client is not then charged VAT on a claim that already includes VAT.

The temporary worker/contractor and the client MUST sign all expense claim forms with copies of the VAT receipts attached.

Contractor Zone

The Hudson Contractor Zone provides guidance to contractors that are on assignment through Hudson.

As your first port of call for information, within the Contractor Zone you can find out about submitting your timesheets, how Agency Workers Regulations may affect you, as well as answers to frequently asked questions on taxation, annual leave and pensions, amongst others.

Use the links on the right navigation to read the information in the Contractor Zone.

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