In December 2015 the government published draft legislation regarding potential changes to travel and subsistence expense claims. The final legislation is not due to be published until 16th March 2016 and the proposed changes will come into effect on 06th April 2016.
The restrictions are aimed at contractors employed through an employment intermediary, such as Sterling Umbrella, who are deemed to be under the supervision, direction or control (in the manner of their work) of the end client.
These changes may potentially restrict the amount of travel and subsistence contractors will be able to claim from 06th April 2016. The legislation is intended to bring the treatment of travel and subsistence in line with that of direct employees of the client, whilst ensuring that contractors who are not under supervision, direction and control who are more akin to a self-employed person, will be able to claim expenses.
Sterling are working closely with many trade associations including PRISM, FCSA and APSCO to lobby the government as we believe that site based workers should be allowed to claim expenses.
As a result of these changes a petition has been launched to bring this matter to the attention of Parliament. Please click on the link below to gain access to the petition, it is important that we keep lobbying parliament to ensure they understand the depth of feeling our industry has against these unfair changes.
We will be keeping you updated over the coming weeks regarding the changes coming into play on the 06th April. We can assure you that whatever the legislation changes bring Sterling will continue to offer you a compliant solution to your contracting needs.
Link to Petition
Link to draft legislation on HMRC website