No travel or subsistance claims going to be allowed anymore

[tractor]

....

The taxman has estimated that there are 150,000 individuals potentially working in this way. The claims made by them for tax relief on their travel and subsistence are said to cost the Exchequer at least £400million per year.

I am really struggling with the maths here... wouldnt that be around £13k in lunch & travel expenses each person?
about £50 a day!

The taxwoman is allowed to lie and exaggerate to Lord's Committees. Governments accept those claims where it suits them even when they know they are lies.

[eek]

MPs and Lords lost all their benefits in 2009 (remember MPs now have to travel 2nd class).. So its hardly surprising they are going to accept doing to others what has been done to themselves..

[Zero Liability]

I'm pretty sure our tame accountants and brolly members would have had something to say about it if that were the case.

The DM routinely publishes rumours, lies and half truths as fact in a way that makes Fox News envious.

Or Channel 4, or the BBC, for that matter.

...and you still have to pay it. It's only the CT payable that you save on.

Ya. If you are a business, you get to reduce your CT liability through expenses. If you're a contractor, at least for the time being you can offset these. I think it's the PAYE worker situation that is ridiculous, where the costs of working do not, for the most part, reduce your tax liability and instead you're taxed on your entire earnings above the relevant thresholds.

[AMH]

i got something wrong there...

the £50 was the Tax element... so £250 a day in expenses. (assuming its 20% tax loss)
£10 on food, £240 on commuting... Own up, who's travelling business class to work

[LisaContractorUmbrella]

There was a discussion in December [HMRC haven't decided what they're going to do] - a consultation will follow [HMRC will have decided what they are going to do and interested parties will have a chance to argue with them]

There is nothing set in stone at the moment.

[ILoveToast]

Looks like the consultation has already been and gone.

Linky

Link to consultation PDF

[LisaContractorUmbrella]

Looks like the consultation has already been and gone.

Linky

Link to consultation PDF

That's a discussion document

[vwdan]

i got something wrong there...

the £50 was the Tax element... so £250 a day in expenses. (assuming its 20% tax loss)
£10 on food, £240 on commuting... Own up, who's travelling business class to work

Who isn't?

I went to London in Standard Class once - oof, won't fall for that again. Not the way to start a day.

[ILoveToast]

That's a discussion document

So it does. It also states on the HMRC website it is now a 'closed consultation'.

Linky 11th one down.

Page 24 of the document has the time lines. They have Kept it quiet and seems to have been quite a speedy process.

Just waiting for the consultation outcome. I wonder how many umbrellas managed to get a response in?

[Eirikur]

...and you still have to pay it. It's only the CT payable that you save on.

14/15 tax year I claim about £8200 pounds on mileage, 20% is significant