How do I submit my expenses?
Limited Company Contractor
When submitting Expense claims use the following address and format:
Subject field – Contractor Name and Morson I/D number
All expenses must be accompanied by the relevant copies of receipts.
All expense claims require:
Week ending date, contractor name, Morson ID number and client you are working for.
All expense claims must be authorised by the client. Please note if you do not include the above information on your Expense claim this could delay payment. This applies to all contractors.
Expenses – PAYE Contractors
Please send your Expenses Claim Form and your ORIGINAL receipts to:
Morson Expenses Team
This will allow us to fully reimburse your expense including the VAT form. Please see example of how to fill in your Expense Claim Form. Please note a fully completed Expenses Claim Form and original receipts are required to ensure full payment of your expenses.
Expenses – VAT Registered Limited Company Contractors
Send in your completed Expenses Claims Form and copies of your receipts by email to firstname.lastname@example.org or fax to 0161 786 1529. On your self billing invoice or remittance advice your expenses will be split out to show the Net and VAT separately.
Please see example below:
Net £100.00 – This will be shown under your expenses on your Self Billing Invoice or Remittance Advice.
VAT £20.00 – This will be shown as part of the VAT amount on your Self Billing Invoice or Remittance Advice.
Gross £120.00 Total amount refunded
This is because the VAT shown is due to HMRC. Please note a fully completed Expense Claims Form and copy receipts are required to ensure payment of your expenses.
Expenses – VAT Registered Contractors – The Flat Rate Scheme
First a reminder, in normal VAT accounting if you incur an expense you will fill in an expenses claim form and provide us with copy receipts. We will refund the expense to you along with payment of your hours and account for the VAT accordingly.
Example below is for a hotel bill of £120.00 including VAT
Hotel Net Amount £100.00
Total VAT @ 20% £220.00
Total Invoice £1320.00
The VAT amount including the £20 VAT on the hotel bill will need to be paid over to HMRC as output tax, however you or your umbrella company will be able to use your original receipts to reclaim the input tax on the hotel bill.
The Flat Rate Scheme
The purpose of the Flat Rate Scheme is to simplify VAT accounting for small businesses with a turnover limit set by HMRC, currently less than £150,000.
The percentage of output tax you pay is reduced from the prevailing rate at the time to a lower percentage dependant on the sector in which you work. What it does mean however is that you cannot reclaim Vat on your purchases/expenses. Using the same example as above you will not be able to use original receipts to reclaim the input tax on the hotel bill. You will however pay the whole of the VAT due on the self bill invoice at a rate lower than the prevailing rate (20% in this example), this compensates you for not
Expenses – Limited Company Non VAT – Registered Contractors
Send in your completed Expenses Claims Form and copies of your receipts by email to email@example.com or fax to 0161 786 1529. Please note a fully completed Expenses Claim Form and copy receipts are required to ensure payment of your expenses.
Also if claiming overseas receipts please provide proof of exchange rates.