I'm contracting in a senior management role in design/development of mobile shopping solutions.
Due to the nature of the area, I need to access a range of mobile devices day-to-day. Many of these will be provided by my client or at least a chargeable expense for which they will reimburse me if I buy them, but there will be others which I will need to buy myself.
For those that I purchase from my own funds, how do I present these as expenses so that it is understood (by CU & HMRC) that this isn't "buying a phone" but is a necessary equipment for my role?
Answer: If you purchase mobile devices, or indeed any equipment, using your own funds there are a number of tests imposed by the legislation that need to be passed before the expenditure is treated as a tax benefit.
Firstly the mobile devices or equipment have to be necessary to enable you to perform your assignment work, in other words not just a "nice to have". We would ask you to obtain a statement from your client confirming that the mobile devices or equipment were necessary for the performance of your assignment work and that the client was not prepared to supply such mobile devices or equipment.
Next we have to be satisfied that the mobile devices or equipment will be used wholly and exclusively in the performance of your assignment work and we would seek a statement from you giving such an assurance.
Once those statements have been provided you would be able to enter the receipted cost as a non-chargeable expense when submitting your timesheet and having done so you should send the original receipt to us.