The new management at Crystal Umbrella have been hard at work over the last month, already making moves to improve the features and benefits of our already award winning service.As promised in October this year we are delighted to announce two additional expense types to be added to our expense policy in January 2011, which if applicable to you, will help to further increase your take home pay.
Overnight incidental expense allowance
This new expense is applicable for all those of you who have to stay away from home overnight as part of your contract, whether it’s for just one night or seven, with effect from the 17th January 2011 you will be able to claim a flat rate of £5 per night (within the UK) or £10 per night (outside the UK).
Designed to help cover the cost of small incidental costs incurred with an overnight stay, such as newspapers, phone calls home or personal care products, the allowance can be claimed as a flat rate for each night you are away.
This means if you currently stay away from your main home but remain within the UK for 4 nights a week you can now claim an additional £20 per week in incidental expenses. That’s £80 per month or for a typical 3 month contract £240. Following the same claiming pattern but for a stay outside the UK, the additional claims would be £40 per week, £160 per month or a whopping £320 per month.
To help maintain a straightforward claiming procedure, you do not need to supply receipts or proof of purchase for this type of expense. Simply claim via the Crystal web portal or on any of our expense forms (new versions being released soon) as part of your normal claiming procedure.
Expenses claimed outside the UK
Claiming subsistence and accommodation expenses while outside the UK has always been a bit of a nightmare due to the different laws in the host countries and the annoyance of having to collate and distribute receipts to your Umbrella; well we have been working to try and simplify it.The financial benefits of this new expense policy could be enormous so watch this space, launching towards the end of January 2011 will be a complete new way to claim expenses incurred outside the UK, which will once again place Crystal Umbrella at the forefront of international contracting.
The expense allowances available to you will be based on the country and location you are in and may be claimed with or without receipts as the allowance values are fixed. Amounts claimable are tax free and HMRC approved.
To whet your appetite:
A contractor currently working outside the UK, incurring around £475 a week in expenses made up of accommodation, incidentals and travel, using the new location based allowances will soon be able to claim:
Location Expense claim Difference in return
Ireland £1040 £269 more each week*
Italy. £1862 £662 more each week*
*Example based on 5 days at £500 pay rate, return based on typical 40% tax rate.
Remember: the new location based allowances need no receipts or proof of purchase, therefore we believe this is the most innovative advancement seen in expense processing for contractors working outside the UK and we are proud to be the first to offer it.
If you need more information of either of the above, please don’t worry, we will be personally contacting everyone that the new changes will affect before they are officially launched. If your contract is due to change over the next few weeks, bear the above in mind and ask your Personal Assistant for more information the next time you call.
We will have many more service improvements and updates as we move into 2011, we promise to work hard keeping you informed every step of the way.
Director of Service Delivery
0800 848 8888