Removal of schedule E expenses for "temporary" staff.

[Svalbaard]

I've just had a chat with a colleague of mine who mentioned in passing that there is an HMRC consultation out, the purpose of which is to decide on removing the ability of temporary workers to claim schedule E expenses such as mileage and subsistence allowances.

Apologies if this has been answered elsewhere, but I was just wondering if this is correct, and/or if anyone had any further or more detailed information on it.

Many thanks.

[NotAllThere]

This one?

Of course the simplest way to make it fair to everyone, would be to allow permies to also claim home to office travel as a deductable expense. Like in much of Europe.

[Zen Contracting]

This has come about because a lot of umbrella companies have been abusing the dispensations given to them by HMRC.

A dispensation means that the employer (in this case the umbrella company) does not have to file a P11D for each of its employees if their expenses remain below the level of the agreed dispensation. It does not mean that a contractor can claim a flat rate of expenses and it does not mean that the contractor does not have to keep receipts to back up expense claims. However some of the less professional umbrella companies have been encouraging contractors to claim a flat rate of expense even if that flat rate bears no relationship to the actual amount of expense incurred.

You can sort of see HMRC's view point on this matter. Lets hope the unprofessional few don't spoil it for the majority who play by the rules.

David.

[Waldorf]

Apologies if this has been answered elsewhere, but I was just wondering if this is correct, and/or if anyone had any further or more detailed information on it.

Many thanks.

Like here? http://forums.contractoruk.com/accou...as-doomed.html