Giant won't accept receipted claims for evening meals with overnight stay - why?

[LisaContractorUmbrella]

Please explain!

HMRC are proposing new legislation, which is currently under consultation, which means that if your client or agency or umbrella company has the right of supervision or direction or control over you, you won't be able to claim for tax relief against travel and subsistence costs from April 2016

[threespines]

HMRC are proposing new legislation, which is currently under consultation, which means that if your client or agency or umbrella company has the right of supervision or direction or control over you, you won't be able to claim for tax relief against travel and subsistence costs from April 2016

Thank you, Lisa. An ... interesting development!

[LisaContractorUmbrella]

Thank you, Lisa. An ... interesting development!

That's certainly one way of putting it

[CoolCat]

Well I've worked for a number of the big consultancies perm in the past. Generally they contract their consultants as home based contractually, and expense all their travel whenever they leave the home address - working on client sites and so on. How are umbrellas any different?

[LisaContractorUmbrella]

Well I've worked for a number of the big consultancies perm in the past. Generally they contract their consultants as home based contractually, and expense all their travel whenever they leave the home address - working on client sites and so on. How are umbrellas any different?

They're not but consultancies will be exempt from the new legislation. Possibly because they are involved in so many Public Sector contracts

[CoolCat]

They're not but consultancies will be exempt from the new legislation. Possibly because they are involved in so many Public Sector contracts

Thanks for the reply Lisa.

That just leaves more questions. What happens to contractors contracted into consultancies? Currently many are on similar expenses deals. What is the legal definition of a consultancy that sets them apart? What will stop umbrellas morphing into "consultancies"?

Sounds very badly thought through and ill advised. Why should I take a role far away from home if I have to spend taxed money on the travel and accommodation? So it will reduce workforce mobility which is exactly what the country doesn't need.

Cheers

[LisaContractorUmbrella]

Thanks for the reply Lisa.

That just leaves more questions. What happens to contractors contracted into consultancies? Currently many are on similar expenses deals. What is the legal definition of a consultancy that sets them apart? What will stop umbrellas morphing into "consultancies"?

Sounds very badly thought through and ill advised. Why should I take a role far away from home if I have to spend taxed money on the travel and accommodation? So it will reduce workforce mobility which is exactly what the country doesn't need.

Cheers

Sorry it took a while to reply CoolCat - have been away.

You're right it is badly thought out. As far as a legal definition of a consultancy is concerned, I have no idea - I don't know if there is one. HMRC's opinion is

"professional service firms that second staff to clients will not be caught by the new rules as their business is not substantially in the supply of labour"

I can see businesses going to considerable lengths to rebrand so that they can be considered as a consultancy and therefore strengthen their position in the market place

[SueEllen]

"professional service firms that second staff to clients will not be caught by the new rules as their business is not substantially in the supply of labour"

The only polite thing I can say about that is bull.

[LisaContractorUmbrella]

The only polite thing I can say about that is bull.

Well quite