On the whole, no. If you work under an umbrella company HMRC will deem you to be a permanent employee and therefore can’t claim back costs such as travel and subsistence. This is subject to an SDC test.
There are a three scenarios where you can claim expenses:
- You are have passed an SDC test in the manner of how you work, expenses can be claimed, a detailed list of expenses can be found here;
- You have failed an SDC test but your end client reimburses your expenses over and above your contractual rate and the expenses you incur are for offsite, infrequent costs where there is no evidence of regular commute, find out more;
- You have failed an SDC test but you are a mobile worker and you are obliged to attend a number of work places during your working day in order to perform your duties of employment, find out more.
Most employees working via an umbrella company are unable to claim expenses and benefit from tax relief on those expenses via the umbrella payroll. This is because you are essentially operating as a permanent employee. Under HMRC regulations employees cannot claim tax relief against ordinary commuting costs (such as travel and subsistence costs) to a permanent place of work.
Because you are operating under supervision, direction or control while at work, you are treated in the same manner as a permanent employee for tax purposes.