Employment Intermediaries and Tax Relief for Travel and Subsistence

10 July 2015

A consultation has been published - Employment Intermediaries and Tax Relief for Travel and Subsistence which sets out the government’s proposals for amending the rules for tax relief on travel and subsistence for those working through employment intermediaries.

The government intends to remove workers’ eligibility for home to workplace travel and subsistence tax relief where they are engaged through an employment intermediary, such as an umbrella company or a personal service company (PSC), and are working under the right of supervision, direction or control.

HMRC also plan to hold roundtable discussions with stakeholders to improve understanding of the proposals and to help develop responses to the consultation on the proposed changes.

Responses to this consultation will be used by the government to finalise proposals with a further announcement planned at Autumn Statement 2015. This will be followed by publication of draft legislation, with changes to be introduced in the Finance Bill 2016 and implemented with effect from 6 April 2016.

CIPP comment

The Policy Team will be studying the consultation, and if appropriate will issue a survey in due course.