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| Consultation on travel expenses launched |
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HM Treasury has launched a new consultation document which will look at potential abuse of the tax relief rules on travel by temporary workers using "overarching" contracts. The cost of travel between home and work is normally regarded as a personal expense, putting an individual in the position to do his job, rather than an expense incurred in performing his duties. Travel between home and a permanent workplace does not qualify for tax relief. However, a distinction is made for temporary workplaces where the worker goes to perform a task of limited duration, or for a temporary purpose. Tax relief is given for travel between home and temporary workplaces, but this depends on the workplace being a temporary one within the rules, not on whether the worker is on a temporary contract. Overarching employment contracts are often used by umbrella companies and employment agencies to change what would be a series of permanent workplaces (for which no tax relief is due for travel between home and work) into temporary workplaces (for which relief is due). The consultation paper invites views from stakeholders over the summer with final comments by 13 October 2008. |
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Friday, 25 July 2008 | 1164 Hits |
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