The government has published its Finance Bill, confirming a number of important amendments from the Budget and Autumn Statement.
It contains a number of important details about travel and subsistence (T&S) tax relief for contractors engaged through an employment intermediary, like an umbrella company.
Travel and subsistence
Clause 14 of the bill refers to ‘travel expenses of workers providing services through intermediaries’, detailing important changes to T&S tax relief for contractors engaged through umbrella companies.
The document includes a number of amendments, but none that were unexpected.
In the past, contractors working through umbrella companies have been able to offset ‘reasonable’ expenses like travel and accommodation against their tax bill to increase their take home pay.
The new Finance bill confirms a number of restrictions to this, particularly regarding how the new rules will be applied.