Travel And Subsistence to be Consulted On
As part of yesterday’s Budget 2015 statement, Chancellor George Osborne announced an HMRC consultation around travel and subsistence expenses for workers who are under the supervision, direction and control of their hirer.
Lyndsay Shimmin, Managing Director, confirmed that this consultation was expected, and is welcomed by the team at Green Lantern.
“This announcement should not surprise those who closely follow UK tax legislation, and as such we anticipated following the pre-budget statement in December that a consultation would be announced for the summer of 2015.
As a fully compliant member of Professional Passport, we recognise the requirement for this legislation and have always monitored travel and subsistence claims to ensure that they are within the scope of all relevant legislation, and will continue to do so. We also understand that the Government does not wish to adversely affect those within the UK workforce who as professional contractors choose to operate through either an umbrella company or their own small business.
We are particularly pleased that the Government has recognised the importance of looking at those umbrella companies who are not ensuring that their contractor employees are benefiting from their chosen operating model and understanding their net payments – abuse of the temporary workplace should not be tolerated and we relish the opportunity to remove these companies from the marketplace. As with any relevant consultation, Green Lantern will be working with its professional advisors, sector bodies and other organisations to ensure that we fully respond and comment where requested, and will continue to work with HMRC in this area.
Finally, we are pleased that HMRC have confirmed that travel and subsistence rules will remain in place in their current form until at least April 2016 and we will continue to comply with these and all other rules and regulations as a fully compliant UK umbrella company.”
If you have any questions in relation to this or any related matter please get in touch with Green Lantern on 0207 164 2116.