The government, on top of all the existing consultations, has announced a review into the underlying taxation of travel and subsistence expenses which is based on the Office of Tax Simplification’s (OTS) report which was released in January.
They believe that the current rules do not reflect the changes in working practices and the way that the workforce operates, including the growth of the temporary labour market.
The first stage of the consultation is expected to last between July 2014 and October 2014 during which time government will seek to improve its understanding of the commercial realities of travel and subsistence payments and draft a framework for the new rules. The government plans to report on this first stage at the Autumn Statement 2014. The second stage of the consultation will follow from winter 2014 until spring 2015.
This area is one of interest to every agency that supplies contract workers. Check out the consultation here. Let us know if there is any comment you want to make, all points will be considered as we may want to engage with the government on this.
For a list of current consultations see here.
