Claiming accomodation via (a kind of) Umbrella company

Croatoan

Hi
I'm an agency worker and some of my work takes me too far away to commute. While my employer is the agency, they run a scheme similar to that provided by an umbrella company whereby I can claim mileage allowance, accomodation, meals etc back from tax.

What I can't quite get my head around is they tell me that while I can claim for my entire hotel/b&b bill, I will only be refunded approx 20% of it, so if it costs me a £150 a week - I choose as cheap as I can find - I'll get £30 off my tax bill, leaving me £120 out of pocket). Now I don't get paid enough to be able to spend £120 a week on accomodation, and I really don't quite get why it's such a small percentage of my costs.
Can anyone explain why accomodation differs from my other expenses which cover the full amount of any bill.
Is there any way I can claim a larger percentage back? I am free to join a dedicated umbrella company if I wish, will they be able to get me significantly more or is this just the way it is?

Thanks for any help.

jimmo

For any employee ( for tax purposes you are an employee) the employer can reimburse the costs of business travelling and subsistence. If the employer does not do so the employee can claim tax relief on those expenses.
So the employee may get his full costs from his employer but if he doesn't he will get tax relief (typically 20%) from the taxman.
As you are an agency worker the definitions of employer and employee become rather clouded but the bottom line is that the client, the place where you actually work, is prepared to pay a certain amount for your work.
Just using round figures if the client is prepared to pay £500 for a weeks work from you and it costs you £100 a week in travelling and subsistence your agency could pay you £500 (taxed) in wages leaving you to sort out the tax relief. It could also pay you £400 in wages and £100 in expenses. Then you will get £100 tax free and £400 taxed.
Either way around you will end up with the same take home pay.

Croatoan

.Thankyou.