HM Treasury Releases Consultation Document on Tax Relief for Travel Expenses
Charterhouse Group International read with interest the proposals being put forward by the Treasury in their consultation document - Tax Relief for travel expenses: temporary workers and overarching employment contracts, just released. (http://www.hm-treasury.gov.uk/)
The proposals come as no surprise to anyone operating within the market, but we are disappointed that the government continues to erode the place of the flexible workforce that has contributed so much to this country’s success and fortunes. This legislation will have serious consequences for the recruitment industry and clients using temporary workers and will directly hit their bottom lines – particularly those businesses already suffering from the effects of the credit crunch. The government seems to be doing their best to add to this hardship by releasing this document at this time.
Nerys Roberts, Charterhouse's Group Commercial Director explains: “The industry has been through considerable upheaval over the last 15 months to accommodate the MSC legislation. Naturally, we welcome the government’s intention to work towards a level playing field but believe that the proposal to remove tax relief for travel expenses could lead to considerable disruption for recruitment companies as temporary workers flood back to their payroll. The worst case scenario is that recruitment companies could open themselves up to MSC legislation, as some workers try to protect their financial position that they have been enjoying and are attracted to disguised MSCs. Recruitment companies have to be on their guard.
We have spent considerable resource developing our FPS service to be compliant while offering value added services to the UK's more than one million temporary and contract workers. It is very much business as usual for us as we continue to provide a practical and compliant service. FPS does not operate under a dispensation but is aware of a number of competitors misleading customers by blatantly abusing these agreements as a tax-reducing measure.”
Fps umbrella companies offer independent workers a number of advantages whilst working on temporary contracts as fully explained on their website, www.fpsumbrella.com.
Charterhouse will continue to work with the recruitment industry and offer a wide range of useful services through its recently launched PayDynamics which uses proprietary IT systems to provide bespoke payroll, back office and financing solutions to recruitment companies.
Further information from:
Jennifer Monro, Marketing Manager
Charterhouse Group Ltd, Viking House, St Paul’s Square, Ramsey, UK, IM8 1GB
Tel: 01624 810 590 Fax: 01624 818 515
Email:
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