OSBORNE’S AUTUMN STATEMENT : WE STILL DON’T KNOW THE DETAILS OF THE RESTRICTIONS FOR TRAVEL & SUBSISTENCE!
Although we already knew changes to Travel & Subsistence were afoot, we are no nearer to understanding what exactly these changes are and how they will affect the contracting sector.
The Autumn Statement presented by George Osborne today, provided a brief statement surrounding Employment Intermediaries and Tax relief for travel and subsistence, offering no further detail than announced in the Summer Budget.
“3.20 – Employment intermediaries and tax relief for travel and subsistence
As confirmed at Summer Budget 2015, the Government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies. This change will take effect from 6 April 2016.”
We could take a positive view on the statement published today, whereby it mentions ‘to restrict’, rather than to remove, but again we don’t know what these restrictions will be.
With little information provided from Osborne today, it is thought that further details may come to light on the 9 December 2015 when the Finance Bill 2016 will be amended.
ANDREW JOHNSTON CEO PROVIDES HIS THOUGHTS “Following today’s Autumn Statement, it doesn’t surprise me that the changes planned have been delayed, as more thought is required by the Government as to how they can solve the issue of non-compliant providers promoting Tax avoidance schemes. We have helped a large number of recruitment companies to get their payroll affairs in order following poor advice and these schemes. The Governments long term plans are to flush out those providers blatantly not complying with HMRC regulations.”
With the Government still undecided on the exact changes to Travel & Subsistence, it is now the time to consider how any future changes will affect the present day Umbrella products and the contractors on this platform. With the contracting sector being a crucial part of the UK economy, it is vital that ePayMe continue to support contractors and agencies by providing a fully compliant payroll solution for the future. That’s why ePayMe offer a range of services to suit your business needs Hybrid – the best of both payroll solutions. Umbrella – the traditional payroll solution. eCo – the PAYE product of choice. WANT TO FIND OUT MORE ABOUT HYBRID, UMBRELLA & ECO Say hello to our sales team
t: 0800 622 6119 e: info@epayme.co.uk w: www.epayme.co.uk or why not come visit us at our Head Office Alba House, Mulberry Business Park, Fishponds Road, Wokingham, Berkshire, RG41 2GY