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Post Info TOPIC: Insurance for cis subcontractor public liability and accident cover is it allowable expense ?
Adrian99


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Insurance for cis subcontractor public liability and accident cover is it allowable expense ?
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Hello !

I would take this opportunity to wish everyone a great bank holiday weekend.

 

If possible, would someone help me with the following:

Working as self employed subcontractor I was charged £3 a week by the payroll company for an insurance that had to cover me for public liability and accident.

The cost is on the weekly statement.

 

I would like to deduct this as an expense but I am not sure if it is allowable. 

I have called HMRC and they said that if it is accident cover it is not allowable. 

Could I just split the cost in half and only claim the public liability part as allowable ?

 

 

Thank you for your help. 

Kind regards, 

 

Adrian 



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This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.

 

P.S. I only ride a motorbike because I want to dry my clothes faster 
RobH


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You can claim the lot...however if you have an accident and the insurance pays you a lump sum then if you have claimed the insurance as a tax allowable expense then it is possible that tax would be due on the payout, whereas it would be tax free if you didn't claim the expense...or at least this is how I have viewed certain insurance costs in the past which have been made voluntarily. I would have thought though that this may be different on the grounds that it is a mandatory expense from the contractor/agent. I would like to know what exactly it covers and what kind of benefit it confers should you claim on it (my guess is very little as the premium is comparatively tiny).

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Rob
www.accounts-solutions.com
Adrian99


Senior Member

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Posts: 361
Date:
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Thanks Rob,

This insurance is actually on the statement received from the payroll company.
I have to check again, but I think I do not even have a policy.
Still didn't get it why a payroll company deals with insurances...

The good news or the bad news as I am not sure yet, is that the legislation has changed recently and now I will be the agency employee so they will do the payroll directly.
I will still keep my self employed status, but this is just in relation with this agency.

Thank you for your help,
Have a nice evening

Adrian

__________________

This is just my personal opinion. Advice should be sought from a suitably qualified Accountant.

 

P.S. I only ride a motorbike because I want to dry my clothes faster 
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