Can Contractors Claim for Business Expenses during HSMP

[krssubbu]

Hi Everyone,


I am on the HSMP and my extension will be in Jan 2009. So my earning criteria starts from this Jan 2008. I am a contractor at the moment and i am advised by my umbrella company that contractors can claim for Business expenses, to reduce the tax (VAT) and NI.

If i claim for expenses, how will it be considered for my HSMP. Will the Invoice Value be taken into account or will the gross value (after the claims for business expenses and employees NI) will be taken into account.

Suppose if my invoice value is 2000 pounds

Business expense is 500 pounds

Then i gross value after claims will be on 1500 pounds (2000 -500).

Tax will be on 1500

So in this case, will HSMP team consider my invoice value or will it consider be gross value

Pls help me out here as i do not know to claim or not

Thanks

[JavaGuy]

The HSMP team will consider only your 1500. Re-imbursement of expenses will not be considered.

[krssubbu]

Hi,

But this is not re-emborsment of expenses since i am only claiming as SCHEDULED E expenses which are business expenses. These expenses can be claimed legally as a contractor.

Pls let me know

thanks

[SYH]

Hi,

But this is not re-emborsment of expenses since i am only claiming as SCHEDULED E expenses which are business expenses. These expenses can be claimed legally as a contractor.

Pls let me know

thanks

The way you laid it out you can only be evaluated by the 1500 amount.
Ask the umbrella company how it works, I think you got it wrong in terms of how it actually works