The April 2016 changes to Travel & Subsistence for Contractors

(1 minute to read)

In April 2016 HMRC announced that workers who operate through an intermediary (recruitment agency, umbrella company or PSC) would not be able to claim for tax relief on travel and subsistence expenses if they are under the supervision, direction or control (SDC) of anyone within the contractual chain.

This also applies if anyone in the chain has the ‘right’ to supervise, direct or control even if they don’t exercise that right.

As a result after 6th April 2016, HMRC will assumed that all contractors who work through an intermediary will be under SDC unless they can prove otherwise.

The legislation also has an element of ‘debt transfer’ which means that anyone in the contractual chain that provides false evidence could be held liable by HMRC.

Contractor Umbrella has fought actively against the introduction of this legislation as we believe it to be inherently unfair but it stil went though. If you have any questions on claiming expenses through an umbrella company please call Sophie Lewis on 01296 591 000 or email sophie.lewis@contractorumbrella.com.

Still thinking about if you should join Dolan Accountancy?

Give us a call on 01206 591 000 or email jessica@jvbconsultancy.co.uk

BLACK FRIDAY DEAL

One week margin free when you sign up with Contractor Umbrella today!
Hurry - Deal ends at midnight tonight.
CLAIM NOW
      Terms and Conditions: 
1 week margin free or £25 reduction on monthly margin. Online registration form must be completed by midnight 6th December 2019. Payment must be processed and margin redeemed by 31st December 2019.
      
close-link

dav1