"Consultation" on Employment Intermediaries and Tax Relief for Travel and Subsistence

[tractor]

....

Or move home to be closer to where most contracts are???
But am aware this is not realistic most of the time... Jeeez even people living just outside London (Kent area) who have a short train commute, their travel expense every year is not a joke thanks to the railway prices !!

In fact even though I live in the outskirts of London, this will make working at Canary Wharf not viable at all as its closer and a lot easier for me to drive there than to train it, but if I can't claim mileage and parking, then its not worth it !

Maaan, I got hit from every angle this Budget, Div tax, BTL and T&S !!

So who are still able to claim for T&S ?? Large consultancies only , what about builders, plumbers etc??

At this point, everyone who was claiming last week.

A consultation was announced, once that is complete, a proposal will be made that has to go through Parliament if it is attached to any law for enablement purposes, otherwise it will be via an SI which can be implemented immediately. But don't expect any changes until next April.

[SueEllen]

Or move home to be closer to where most contracts are???
But am aware this is not realistic most of the time... Jeeez even people living just outside London (Kent area) who have a short train commute, their travel expense every year is not a joke thanks to the railway prices !!

In fact even though I live in the outskirts of London, this will make working at Canary Wharf not viable at all as its closer and a lot easier for me to drive there than to train it, but if I can't claim mileage and parking, then its not worth it !

Maaan, I got hit from every angle this Budget, Div tax, BTL and T&S !!

So who are still able to claim for T&S ?? Large consultancies only , what about builders, plumbers etc??

Builders, plumbers etc won't be able to claim just like us if they are incorporated, and a lot are now to limit liability.

Unfortunately the idiots who wrote the policy document clearly aren't lawyers or they would be aware that in the various jurisdictions of the UK you have to make things very clear.

[TheCoconutDog]

Builders, plumbers etc won't be able to claim just like us if they are incorporated, and a lot are now to limit liability.

Unfortunately the idiots who wrote the policy document clearly aren't lawyers or they would be aware that in the various jurisdictions of the UK you have to make things very clear.

Where do you get the fact that builders and plumbers won't be able to claim ?

[TestMangler]

Builders, plumbers etc won't be able to claim just like us if they are incorporated, and a lot are now to limit liability.

Unfortunately the idiots who wrote the policy document clearly aren't lawyers or they would be aware that in the various jurisdictions of the UK you have to make things very clear.

Eh ? Think you're mixing dividend tax with PSC consultation here. Unless plumbers are designated as PSCs (whatever that is going to mean) or are caught by the 'new improved' IR35.

[eek]

Eh ? Think you're mixing dividend tax with PSC consultation here. Unless plumbers are designated as PSCs (whatever that is going to mean) or are caught by the 'new improved' IR35.

A PSC is simply a limited company used by a single person... There is no legal definition of a PSC as we all well know...

[TestMangler]

A PSC is simply a limited company used by a single person... There is no legal definition of a PSC as we all well know...

That's why I said 'whatever that is going to mean' in brackets after it.

It is used to describe a company with one director who provides their personal service. That would exclude Joe Bloggs Plumbing Ltd as he does not apply to fit your sink with a personal CV. And before some smart are says that they are an independent business in their own right, try responding to a jobserve ad with someone else's CV but turn up for the 'business kick of discussion' or interview as it was called pre 2000, yourself.

I'd be willing to accept a cash bet that it will have a meaning sometime in the next 18 months and that it will hurt contractors using the ltd/agency/client model that most do.

[Contreras]

I'd be willing to accept a cash bet that it will have a meaning sometime in the next 18 months and that it will hurt contractors using the ltd/agency/client model that most do.

Agree, except I wouldn't be so sure that only those via agencies will be affected.

[jamesbrown]

Eh ? Think you're mixing dividend tax with PSC consultation here. Unless plumbers are designated as PSCs (whatever that is going to mean) or are caught by the 'new improved' IR35.

The disqualifying requirement of (the right of) SD or C is a difficult test. A PSC will not be designated on the basis of trade or profession, so all trades and professions are within scope, subject to meeting the disqualifying requirements. We then await the IR35 review to bring the various tests into line, one way or another. Of course, it's worth bearing in mind that all of these terms are defined, for practical purposes, in the courts, so HMRC doesn't get the final word on this. Useful examples here. Personally, I've always thought that control is the most important of the various employment status tests. That being said, it's much easier to prescribe qualifying conditions for tax reliefs (e.g. reliefs on uprated dividend taxes) than attempt to redefine employment status.

[xar18]

Out of curiosity, if the company had 2 fee earning directors do the same rules then apply? It seems to be targeted at one man companies, so am wondering if 2 directors (or more) = exempt? Not saying many people could make this work, just trying to get a baseline. I.e. Could you incorporate with a wife or mate and split the income/dividends based on day rate? No doubt a bunch of risks, just trying to determine if technically viable? Effort/hassle/risk possibly outweighs the benefit.

[northernladuk]

Out of curiosity, if the company had 2 fee earning directors do the same rules then apply? It seems to be targeted at one man companies, so am wondering if 2 directors (or more) = exempt? Not saying many people could make this work, just trying to get a baseline. I.e. Could you incorporate with a wife or mate and split the income/dividends based on day rate? No doubt a bunch of risks, just trying to determine if technically viable? Effort/hassle/risk possibly outweighs the benefit.

Won't it be on employees not directors if anything?