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Home > Resources > The April 2016 changes to Travel & Subsistence for Contractors

The April 2016 changes to Travel & Subsistence for Contractors

Jessica Vella-Bone17/01/20191 min 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.

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