HMRC proposal for Tax Relief for Travel and Subsistence

[thepurple1]

This is a proposal that could take effect April 2016. It will effect nearly all self employed contractors either working through agencies or direct to companies. Write a letter to your local MP to raise the issue in the house of commons

https://www.gov.uk/government/uploa...l_and_Subsistence_-_Consultation_Document.pdf

 

[Midwest]

Big document, in short, what does it say?

 

[Octopus]

Subject of this consultation:

Proposals to remove home to work travel and subsistence tax relief where a worker is employed through an employment intermediary and under the supervision, direction or
control of any person

Scope of this consultation:

This consultation seeks views on the detail of how these proposals would work and how they can best be implemented.

Who should read this:

All interested parties from the contracting, temporary work and employment industry, including individual workers and contractors and their representative bodies, or any other interested parties.

 

[Midwest]

Fortunately, won't affect me.

 

[thepurple1]

Proving that your working under supervision or not will be hard to prove, how can an agency of project manager be your supervisor when they are just office workers that probably dont know what your job entails or have any technical knowledge whatsoever
. I did 21,000 business miles last year which is a lot of money.
Even if the average worker does 10,000 if you do mileage at 45p per mile thats over £4000 that youll pay tax on

 

[thepurple1]

Proving that your working under supervision or not will be very hard to prove. How can an agency of project manager be your supervisor when they are just office workers that probably dont know what your job entails or have any technical knowledge whatsoever.
I did 21,000 business miles last year which is a lot of money.
Even if the average worker does 10,000 if you do mileage at 45p per mile thats over £4000 that youll pay tax on and it will not matter if your a sole trader or a limited company

 

[happydundee]

Writing to your MP will do bugger all, they will do what they want, it's easy to hammer self employed and agency workers, where as the massive tax avoidance by big corporations could be stopped in one fell swoop if they had the will.

You just have to play by their rules, as long as you stay within the law, when it comes to Tax.

 

[SparkyJoe]

Writing to your MP will do bugger all, they will do what they want, it's easy to hammer self employed and agency workers, where as the massive tax avoidance by big corporations could be stopped in one fell swoop if they had the will.

You just have to play by their rules, as long as you stay within the law, when it comes to Tax.

Yes just bend over and take it, Its the English way.

 

[thepurple1]

For anybody interested and can be bothered to do anything here is a draft letter from the IPSE contractor website. just copy and paste it

_ _ MP
House of Commons
London SW1A 0AA

_ August 2015
Dear Mr/Ms _
The summer Budget contained measures that are of great concern to me, and many other independent professionals that work through their own limited company. These revolve around IR35, changes to the taxation of dividends and restrictions on travel and subsistence allowances.
IR35 is anathema to many of us who work through our own limited company. The rules are difficult to understand and you can never be sure if your engagements are caught or not, making it almost impossible to comply. The House of Lords Select Committee on Personal Service Companies was scathing in its criticism of these rules last year and there was some hope we might be able to do away with IR35 altogether and find a more straightforward means to tackle disguised employment.
It is therefore disappointing that the government appears to want to strengthen the IR35 legislation and make it ‘more effective’. IR35 has been widely criticised, not least by a Conservative opposition when it was first introduced. I am concerned that tinkering around with a system that many lost faith in years ago will heap more unnecessary burden on businesses like mine.
Changes to the taxation of closed company dividends will also hit my business. The 7.5% increase is significant and will reduce the incentive to be in business for many, and is nothing more than a tax on entrepreneurship.
Finally the proposed restriction on travel and subsistence allowances will be devastating for my business and my clients. I frequently incur large bills when travelling and staying close to my client’s premises. I simply will not be able to take on these contracts, and perform the functions my clients need, if my ability to claim relief on these expenses is curtailed.
The proposal will also put businesses like mine at a huge competitive disadvantage to very large firms. While large businesses (EY, KPMG etc) will still be able to claim expenses, consultants working through their own company will not. For these very small businesses, a contract with a client several miles away from their base will no longer be a viable option.
UK companies, particularly in sectors such as banking and IT, rely on independent professionals to provide expertise on a flexible basis. We must make sure that any measures do not unfairly penalise them. There is a tipping point when it no longer makes sense to contract and we seem to be moving ever closer to this situation.

Yours sincerely