date posted: 17-03-2016

In yesterday’s Budget announcement, the Chancellor confirmed there was going to be some significant changes to the contracting industry in relation to restricting contractors claiming tax relief on travel and subsistence expenses when working through an intermediary company such as an Umbrella Company. The legislation is aimed at contractors employed through an employment intermediary, who are deemed to be under the supervision, direction or control (in the manner of their work) of the end client. These changes will restrict the amount of travel and subsistence contractors will be able to claim from 06th April 2016.


Key points from the budget:-


• The government is to push ahead with the removal of tax relief on travel & subsistence (T&S) expenses, according to Treasury documents accompanying this week’s Budget.
• The documents confirmed that tax relief will be removed from April 2016 for temporary workers supplied through employment intermediaries.
• Government plans crackdown on tax evasion through the improper use of PSC's. PSC's under any supervision, direction or control will be   considered as 'inside' IR35
• Abolishing class 2 National Insurance for the self employed

 

We will be issuing further updates soon, please follow us on social media and look out for more information here on our website


 

 
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