HMRC Discussion Document on Expenses

[LisaContractorUmbrella]

I don't think this is bleak as the document seems to show that HMRC is finally recognising the difference between a temp and a contractor - that aside, nothing that comes out of this will come into play until at least 2016 anyway

[TykeMerc]

https://www.gov.uk/government/upload...e_expenses.pdf

Although it's aimed at umbrella companies, this will hit us all if we aren't careful. For example, one potential idea is



So no more travel or subsistence expenses allowed if you are a contractor

Not good news for all of us if this comes to pass.

Not at all good news for my business, it's over a decade since I last had a client in possible, let alone practical commuting distance apart from work from home stuff.

It becomes even more totally silly when you have intersite travel in there too, if one business can claim it as an expense, but another can't.

Ludicrous situation that can't work for the vast majority of us.

[jmo21]

https://www.gov.uk/government/upload...e_expenses.pdf

Although it's aimed at umbrella companies, this will hit us all if we aren't careful. For example, one potential idea is



So no more travel or subsistence expenses allowed if you are a contractor

Not good news for all of us if this comes to pass.

Could this drive up our rates to compensate, or keep them flat, drive contractors out the market and set up clients to engage larger consultancies more?

It won't affect me that much as I don't the Mon-Fri stay over thing.

[tractor]

.....

Could this drive up our rates to compensate, or keep them flat, drive contractors out the market and set up clients to engage larger consultancies more?

It won't affect me that much as I don't the Mon-Fri stay over thing.

Bingo!

That has been the aim of HMRC and successive governments for decades. Why pay to deal with 600,000 contractors when you are already dealing with their clients and the clients already pay all the costs for collecting tax?

IR35 failed so they are attacking us upstream. If the reporting changes go ahead, not only will agents abuse the conduct regs opt out, they will refuse to deal with anyone NOT using an umbrella.

[Zero Liability]

As an aside, I am guessing the payments eligible to be reported will be those actually made after July 2015, irrespective of whether they are being paid for services that took place before then.