Employees are not generally able to offset the costs of travelling between their homes and their workplaces, even where the employees are working on short term contracts for a number of different employers.
Workers supplied by agencies and other intermediaries enter into a single contract of employment with the agency or umbrella company, which then supplies the workers to different businesses.
Why an over-arching contract?
The intention is that the ‘over-arching’ contract separates your usual workplace, which is defined as the agency’s or umbrella’s business address, from the places where you actually work, with the result that you can claim tax relief on the costs of travelling from your home to the places that you work.
When will the change happen?
The government has announced that they will bring forward legislation in Budget 2015 to combat this sort of planning and that they will publish a discussion paper shortly as part of their review of the rules in this area.
The Government has stated that, “This review heralds a further tightening of the rules on employment through intermediaries and will increase the pressure on companies to employ workers directly.”
If you think you will be affected by this change and you want to talk about working through your own Limited company then contact Clearways Accountants on 01737 244298 or complete the contact form below for your free consultation.