The recent Budget proposal to open a discussion on Umbrella Company expenses means that any changes or discussion are largely on hold until after the General Election with the aim of a discussion document being issued in the summer.

The prospect of a hung Parliament on May 7^th could extend this process further with the possibility of a second General Election quickly following the first. A change in control of the Government could also see a completely new budget this year with a different set of proposals.

Although this lack of uncertainty is not ideal it does mean that there will be time for the facts in favour of contractor expenses to be heard.

It is strongly believed that genuine contractors should still benefit from tax free reimbursement of expenses. For them not to do so would be unfair in comparison to permanent employees who are paid tax free for travel and subsistence travelling to temporary short term assignments.