As we thought, the chancellor announced in today’s Autumn Statement that from April 2016 there will be changes that in some cases will restrict tax relief on travel and subsistence expenses. This is in line with the consultation document produced earlier in the year.
So far the Chancellor hasn’t revealed enough detail in his statement for us to know exactly what the full impact will be, who it will apply to and under what circumstance, other than to say that it will apply if you’re working through an employment intermediary, such as an umbrella company or a personal service company. As always the devil will be in the detail.
So for now, we’ll have to wait until 9th December, when we expect further information as to how it’s going to play out in reality. If I can offer one bit of advice, please wait until 9th December before making any changes. There will be hundreds of blogs, articles and opinions expressed over the next few weeks by self professed “experts” about how the one small paragraph issued by the chancellor will dramatically change the market. Most of what will be written over the coming weeks will be ill-informed and wrong. However, it will make good copy. One thing is certain, umbrella companies are not dead, neither are personal service companies. Both will still have a place as contracting is here to stay. So, whatever your WorkStyle, we will have a solution for you. We really are with you all the way.
In the meantime, take a look at our article on the changes to travel and subsistence, and who it’s likely to affect.
- Derek Kelly, Group Managing Director