Following on from yesterday’s Finance Bill 2016, we now know that the Government has ignored the widespread warnings issued by industry bodies and has pushed ahead with its plans to cut travel and subsistence expenses for contractors, from April 2016, which, were as we expected. The main changes are as follows: • T&S expenses will not qualify for tax relief on “ordinary commuting” type expenses where an intermediary is involved unless the worker is not subject to (or the right of) supervision, direction and control • Transfer of liability to directors of the intermediary in the event that PAYE/NIC isn’t operated correctly • Transfer of liability to anyone providing false documents around SDC So, what now, I hear you ask. For ePayMe, it’s business as usual, as we already have products in place ready for when these changes occur next April 2016, so please contact our Sales Team for more information on how we can help you, the recruiter, minimise any foreseeable disruption to your contractors as a result of yesterday’s policy paper and be rest assured that all our products remain fully compliant with HMRC, Tax and Employment Law. Founder and CEO of ePayMe Andrew Johnston said: “We all knew this was coming, it has been widely publicised and indeed argued as to why these benefits should not be withdrawn. The government clearly feel the gain outweighs the loss, when the truth is, the loss will significantly outweigh the gain. As the majority of contract workers indeed work within the Public Sector, this will simply result in the agencies negotiating higher pay rates to compensate the worker for the reduction in their Net Pay. Therefore, what is saved in the left hand, will soon be taken from the right. In many cases, considerably more taken, than that saved. Please do NOT have a knee-jerk reaction to these changes set for April 2016 before speaking with us as to what is available to you. I would also urge you NOT to be drawn in to signing any NDA’s for some magic fix product – they do not exist.” For a full and in depth review of the policy paper, please follow this link – https://www.gov.uk/government/publications/income-tax-employment-intermediaries-and-relief-for-travel-and-subsistence/income-tax-employment-intermediaries-and-relief-for-travel-and-subsistence