Reimbursable expenses versus Clipper Total expenses
Many temporary workers incur expenses throughout their assignment. Subject to qualifying criterea, there are two different pathways that enable these expenses to be included in that worker's pay - Reimbursable, or Clipper Total Expenses.
Reimbursable (non-taxable) expenses
Reimbursable (sometimes called paid or rebillable) expenses are those where the worker has incurred a cost and the end client has agreed to directly reimburse that cost back to the worker. For example, a worker may be asked by the end-client to travel
to a certain location; they are asked to pay for a train ticket using their own money for
which they will be reimbursed. These expenses are invoiced throughout the supply chain, and Clipper receive these paid expenses alongside the worker's wages.
This expense would typically be reimbursed tax free, to the amount of the original cost. Where the worker is an employee of Clipper Contracting Group, we, as the employer, need to ensure these expenses have been genuinely incurred in the first instance. If not, this ‘expense’ should be treated as taxable income as taxed accordingly. The worker therefore needs to substantiate the expense with us to prove it was genuinely incurred and can be reimbursed in full. If we do not receive an expenses claim form or relevant expenses receipts , these will be subjected to tax. Should these be taxed and you subsequently submit the necessary paperwork, we can re-process where required.
Submitting expenses through our Clipper Total solution
Clipper Total is our PAYE solution allows workers to claim certain expenses, subject to the workers satisfying Clipper's eligibility framework. As an employee of Clipper Contracting Group, travel (business mileage) can be claimed. To qualify for this, you must meet the Supervision, Direction and Control (SDC) test, have the end-client confirm you are not subject to SDC, your place of work must be regarded as a temporary workplace and you must be anticipating further assignments through Clipper.
The benefit of this solution, should you be eligible, is that by claiming these expenses, your net pay could be slightly higher.
Despite the differences in the two options, our compliance team are constantly auditing to ensure expenses are being submitted correctly, so for both Reimbursable and Clipper Total expenses, we require an expenses form and corresponding receipts.
For Reimbursable expenses, you will need to fill out an Orange expenses form here
For Clipper Total expenses, you will need to fill out a Blue expenses form here
Reimbursable (non-taxable) expenses
Reimbursable (sometimes called paid or rebillable) expenses are those where the worker has incurred a cost and the end client has agreed to directly reimburse that cost back to the worker. For example, a worker may be asked by the end-client to travel
to a certain location; they are asked to pay for a train ticket using their own money for
which they will be reimbursed. These expenses are invoiced throughout the supply chain, and Clipper receive these paid expenses alongside the worker's wages.
This expense would typically be reimbursed tax free, to the amount of the original cost. Where the worker is an employee of Clipper Contracting Group, we, as the employer, need to ensure these expenses have been genuinely incurred in the first instance. If not, this ‘expense’ should be treated as taxable income as taxed accordingly. The worker therefore needs to substantiate the expense with us to prove it was genuinely incurred and can be reimbursed in full. If we do not receive an expenses claim form or relevant expenses receipts , these will be subjected to tax. Should these be taxed and you subsequently submit the necessary paperwork, we can re-process where required.
Submitting expenses through our Clipper Total solution
Clipper Total is our PAYE solution allows workers to claim certain expenses, subject to the workers satisfying Clipper's eligibility framework. As an employee of Clipper Contracting Group, travel (business mileage) can be claimed. To qualify for this, you must meet the Supervision, Direction and Control (SDC) test, have the end-client confirm you are not subject to SDC, your place of work must be regarded as a temporary workplace and you must be anticipating further assignments through Clipper.
The benefit of this solution, should you be eligible, is that by claiming these expenses, your net pay could be slightly higher.
Despite the differences in the two options, our compliance team are constantly auditing to ensure expenses are being submitted correctly, so for both Reimbursable and Clipper Total expenses, we require an expenses form and corresponding receipts.
For Reimbursable expenses, you will need to fill out an Orange expenses form here
For Clipper Total expenses, you will need to fill out a Blue expenses form here
Updated on: 02/08/2024
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