Site based contractor paid via umbrella company

[simpsonite]

Hi all,
My client is a site based contractor. The contractor he worked for operated an umbrella company for payroll( The company did not reimburse for travel & subsistence). As such even though he might have worked at various sites I feel he is now caught by the new tax provisions for travel & subsistence 339AITEPA 2003 which came into effect from 6th April 16. Therefore no tax relief is available for travel and subsistence from home to each site engagement because it is now deemed travel from home to a fixed place of employment.

If he worked for the contractor and issued invoices as normal for payment under CIS & was not paid by the intermediary payroll company I feel he would be ok to deduct home to site expenses subject to the 24 month rule.

I would be grateful if anyone has any thoughts on this ambigious area of leglislation.

simpsonite

[bd6759]

The 24 month rule doesn’t apply to the self employed.