Travel & Subsistence Tax Changes

The Government is considering changes to tax relief on travel and subsistence expenses, in order to level the playing field between employees and contract/temporary staff. Currently, people employed directly by their employer don’t qualify for this tax relief, while people who are employed through an employment intermediary, such as a Personal Service Company, do. The Government is proposing to remove this tax relief for people who “look and act like employees”, so that such people cannot claim tax relief for ordinary commuting (home-to-work) expenses and lunch expenses.

Tax relief for work-related travel that isn’t commuting (for example, travelling between appointments with different clients) should still be eligible for tax relief, as will any travel where the worker is not “under direction, supervision or control” of an employer (such as an independent therapist travelling between clients).

For more information about the changes and how they may affect you, the Consultation Document is available here. The Consultation is due to end on 30th September 2015 and the Association of Independent Professionals & Entrepreneurs (IPSE) would be extremely interested in your views on the proposals. You can email them your thoughts at travelsubreview@ipse.co.uk.

Article written by team member Denise Shaw

Originally posted on 24th August 2015