Govt. looking to remove travel expenses for contractors.

[BolshieBastard]

They're HMRC, they'll do what they want, consultation or not.

The aim is to increase the tax take, reduce tax relief and force as many people into 'employment' as they can. Just how the last bit fits with their political masters 'flexible workforce,' I do not know.

[LisaContractorUmbrella]

They're HMRC, they'll do what they want, consultation or not.

The aim is to increase the tax take, reduce tax relief and force as many people into 'employment' as they can. Just how the last bit fits with their political masters 'flexible workforce,' I do not know.

It doesn't which is why I personally don't think anything drastic will happen. Much of the problem has been caused by pressure from the Unions who feel that workers who are employed by an umbrella company are 'exploited' but, the fact of the matter is, that many workers have been forced down the brolly route who shouldn't have been and that is now having an impact on the whole industry. If the Government can be made to see that there is a big difference between a low paid worker who is taken from permanent employment or self employment and moved to an umbrella with no uplift in pay and a highly skilled independent contractor who chooses to work with an umbrella rather than operating through a Ltd Co then the problem will resolve itself without drastic action by our friends at HMRC. Form filling is a pain the the backside I know but the more contractors that respond to this the better chance we have of establishing a separation between temps and contractors and that will give the industry a lot more stability moving forward

[Brussels Slumdog]

The major problem is that my normal quoted rate for London at £500 per day includes a built in amount of £150 for travel expenses. It doesn't matter where you live as an IT consultant there never seems to be a project on your doorstep. If travel expenses become taxable then working away from home in the UK would not become viable. Tax and NI on £150 @ 40% rate would leave me about £80 a day out of pocket.

[LisaContractorUmbrella]

The major problem is that my normal quoted rate for London at £500 per day includes a built in amount of £150 for travel expenses. It doesn't matter where you live as an IT consultant there never seems to be a project on your doorstep. If travel expenses become taxable then working away from home in the UK would not become viable. Tax and NI on £150 @ 40% rate would leave me about £80 a day out of pocket.

And that needs to be explained to HMRC - as a specialist you will go where the work is

[Gordon Ice]

Ineptitude rules..

Never gonna happen - how on earth are HMRC going to differentiate between PSC's and Limited Companies without legally defining PSC's first? They've already tried and failed once. If HMRC aren't careful they'll end up making changes that will affect all Ltd's meaning that big businesses will be affected too - and they definitely won't accept this without a fight.

[Pondlife]

Never gonna happen - how on earth are HMRC going to differentiate between PSC's and Limited Companies without legally defining PSC's first? They've already tried and failed once. If HMRC aren't careful they'll end up making changes that will affect all Ltd's meaning that big businesses will be affected too - and they definitely won't accept this without a fight.

You've not heard of the shiny new Freelance Limited Company (FLC) that's just around the corner.

http://forums.contractoruk.com/gener...y-ask-any.html

[drumtochty]

Guys just lighten up!

In February 1987 I was working on site in Grangemouth and the staff guys working for the electrical contracting company had worked away from home for years.

As from April 6 that year anyone of those staff guys working away from home for over two years lost the tax fee status on expenses. The phoned their mates working with other contrcators and got the same story from them.

There was no change of site ability to statrt again.

It is exactly the same for staff people now and in certain cases their employers pay the tax on travel expences for them but their salary is lower.

Those who think that HMRC hate LTD company people are just feeling sorry for themselves.

Give me one good reason why the guy along the road from me pays his own expences after tax as I did for years working staff to go into Aberdeen about an hour away but for the last two years up to October 2014 I have claimed £0.45 per mile tax free to make a similar journey.

Get a life and NO you are not a special case just because you are a Limited Company, you can always go back staff if these guys are getting a better deal than you.

[TheFaQQer]

Give me one good reason why the guy along the road from me pays his own expences after tax as I did for years working staff to go into Aberdeen about an hour away but for the last two years up to October 2014 I have claimed £0.45 per mile tax free to make a similar journey.

Because he chose to work there as a permanent location, and you chose to work there as a temporary location. At the end of three months, he is likely to still be working there, and you could be at the other end of the country and having to travel or relocate there.

If you want a flexible workforce, then you shouldn't be making it fiscally impossible to have one. And whatever the rules are, why should they be different for a one man Ltd and for Crapita?

[vwdan]

Guys just lighten up!

In February 1987 I was working on site in Grangemouth and the staff guys working for the electrical contracting company had worked away from home for years.

As from April 6 that year anyone of those staff guys working away from home for over two years lost the tax fee status on expenses. The phoned their mates working with other contrcators and got the same story from them.

There was no change of site ability to statrt again.

It is exactly the same for staff people now and in certain cases their employers pay the tax on travel expences for them but their salary is lower.

Those who think that HMRC hate LTD company people are just feeling sorry for themselves.

Give me one good reason why the guy along the road from me pays his own expences after tax as I did for years working staff to go into Aberdeen about an hour away but for the last two years up to October 2014 I have claimed £0.45 per mile tax free to make a similar journey.

Get a life and NO you are not a special case just because you are a Limited Company, you can always go back staff if these guys are getting a better deal than .

Maybe because some of us actually follow the spirit of the law as well as the letter, rather than being glorified 'fill a seat' permies. In the last 12 months I've had 7 or 8 workplaces and I claim the same expenses as I did when I was a permie doing the same work for a consultancy.