Expenses for nights on Agency work

pierrot 14:
Can I put a new twist to the discussion ? The agency I work for pay us travel expenses, the amount relates to how far the client is from where we live. £6 for local ones and £15 for those outside the area. Now this payment goes down on our pay slips as “travel” and doesn’t get taxed. The agency says that its a way to get us tax-free money.
2 questions, is the agency scamming me? Can I still claim mileage from HMRC?

P87 states you can claim a maximum of 40ppm (pence per mile) for the 1st 10k miles. LESS any travelling expenses paid to you by the agency. So if they are paying you 38ppm you are only entitled to claim the balance of 2ppm.
Despite the bad taste they leave in my mouth every time I mention them, NOVA do have a comprehensive list (pdf) on their website of what you can claim for, you may have to filter out the dross that relates to NOVA, but you should be able to pick out the relivant points

WHICH EXPENSES MAY BE ALLOWABLE?
TAX-DEDUCTIBLE EXPENSES GUIDELINES FROM NOVA
CONTRACTING LTD
Reducing your tax liability
As an employee under an umbrella arrangement working on numerous
temporary assignments, you are entitled to reduce your Tax Liability by
claiming back expenses that you have to pay in connection with your
work. HM Revenue & Customs states that expenses claimed must be
incurred wholly, exclusively and necessarily in the performance of your
duties as an employee of Nova Contracting Ltd. Tax laws are very strict in
defining which expenses may be claimed. The total of your expenses will
be shown on your form P11D. We send this to the Revenue at the end of
each tax year. If the Revenue chose to review your individual case and
ruled that some of the expenses you have been paid should be treated as
taxable, you would have extra tax to pay.
The following guidelines are to help you identify the various expenses you
can claim in relation to carrying out your duties for each temporary
assignment.
Remember that if HMRC were to check your claim, you would need to be
able to justify the business nature of the expenses you have claimed.
WHAT CAN YOU CLAIM FOR?
1) Travel
Travelling expenses associated with work including travel by car, ferry,
bus, tube, and train. Receipts are required for all expenses incurred,
including VAT receipts for petrol/diesel even when you are claiming
mileage allowance. The start point and destination and reason for the
journey, dates of travel and car details must be completed on each form.
These details help justify the business reason for the journey if the
Revenue challenge you on it. The start and end of the journey should be
specific enough for the Revenue to check the mileage using eg Multimap.
Postcodes are ideal.
IMPORTANT
single assignment the Revenue would probably not regard your worksite
as temporary, and therefore no travel expenses would be allowable.
You would be in the same position as people who have permanent jobs
and who have to pay for their own home to work travel.
For the first 10,000 business miles travelled, the allowance will be
paid at 40p and the remaining business mileage will be paid at 25p
per mile. Parking costs will also be covered if supported by an
original receipt.
*** AS PROOF OF OWNERSHIP OF YOUR VEHICLE, IF YOU HAVE
NOT ALREADY SUPPLIED IT, WE REQUIRE BY RETURN, A COPY OF
YOUR VEHICLE REGISTRATION DOCUMENT (V5) FOR ANY CLAIM,
(THIS ENABLES US TO VALIDATE OWNERSHIP TO THE INLAND
REVENUE IF APPROACHED). ***
NB. NO MILEAGE CLAIMS CAN BE PROCESSED WITHOUT THIS
If you travel with other Nova contractors in your vehicle, you can claim for
an additional 5p per mile for each additional person. However, it must be
a Nova contractor and the details of their name and Nova reference
number MUST be entered onto the claim form under the section titled
“Travel Details”.
2) Meal allowance
If you work more than 5 miles away from your permanent address or
temporary workplace, you are entitled to claim for meals taken during the
course of your working day on the following basis
· If you are away for less than 10 hours, you can claim only for lunch
at a rate of £5.
· If you are away for more than 10 hours, then you can claim for
lunch and either breakfast at £5, or an evening meal for £5 as
appropriate
· If you are staying away over night, you can claim for all three
meals at the £5 per meal.
NB: If you spend more than £5 and have a receipt, then you may claim
the full amount spent. Please note that the Revenue carry out ‘employer
compliance reviews’ in which they check such evidence.
Please note that if your accommodation receipt covers a meal too (for
example bed and breakfast), then you cannot claim a further £5 for that
meal.
3) Daily Allowance
You can claim a 24 hours allowance for incidental expenses when you
have to stay away from your permanent address. This is paid at £5.00 per
night away for stays in the UK and £10.00 per night for stays abroad and
in Ireland. If you are staying with relatives or friends, you can still claim
this 24 hours allowance.
V1 29/6/09
4) Accommodation
If you are staying away from your permanent address, a receipt (ideally
on headed paper) must clearly show the proprietor’s name, address and
telephone number. They should preferably be VAT Registered and provide
a VAT receipt. If your stay in the accommodation is for three months or
more, we may need to ask you for proof of your permanent home address
to show that this one is only temporary. You can claim a daily allowance
when staying in accommodation (See 3 above). If you are staying with
relatives or friends, you can claim accommodation expenses, as long as
you are able to provide a valid receipt. As a form of receipt, you will need
to provide the name, address and telephone number of the person you
have stayed with, along with the amount paid.
5) Tools and Clothing
Tools may be claimed for, but must be of an industrial nature and solely
for use during your work. A VAT Invoice/Receipt must be supplied,
showing items purchased and the shop or supplier. Clothing covers safety
or specialised items such as fluorescent jackets, protective overalls and
steel toe-cap boots.
You can claim for cleaning and laundering of protective clothing. This will
be paid at the rate of £2.20 per overall. A maximum of 2 items per day for
each day worked is claimable.
6) Telephone
You can only claim for business calls. Highlight them on your itemised bill
and submit the original bill with the expense claim form. Rental of a
landline and purchase of a mobile phone are not covered, nor are “pay as
you go” vouchers.
7) Professional Fees/Course Fees
You can claim for courses, books or medical tests relating to your
occupation, as well as membership of professional bodies. You must
submit supporting documents or invoices with each claim.