The timing of the Chancellor’s announcement regarding the review of Employment Intermediaries Tax Relief on Expenses was raised in Parliament yesterday during Business Questions.
There are numerous benefits and reasons that umbrella companies exist for contractors working in the UK and it is not just that they allow contractors to benefit from tax relief for travel and subsistence costs
At Umbrella we wish to highlight the deep concern felt with the points raised and possible proposals outlined in the recently published HMRC document titled ‘Employment Intermediaries: Temporary workers – relief for travel and subsistence expenses’
As previously reported, the Chancellor as part of his Autumn Statement, has stated there will be a discussion opened regarding the Government’s concern that “some temporary workers to benefit from tax relief for home to-work travel expenses that is not generally available to other workers”.
In July 2014, the Treasury launched a two part consultation on the treatment of tax for travel and subsistence payments. The aim is to bring legislation up to date with modern day working practices.
The CBI (Confederation of British Business) who lobby on behalf of British businesses have responded to the HMRC discussion on Employment Intermediaries: Temporary Workers – Relief for Travel and Subsistence Expenses.
Yesterday (8th January 2015) Umbrella.co.uk attended an FCSA meeting and consultation with HMRC regarding the 'Employment Intermediaries: Temporary workers - Relief for subsistence and expenses proposal.
The Chancellor included Umbrella Companies in his Autumn Statement after what seemed to be as a result of a campaign from UCATT and other Trade Unions criticising Umbrella Companies.
As a contractor you may well get invited by your end clients to join in their Christmas activities but as a contractor working through your own limited company there may be some tax breaks possible for holding your own.