What is the legislation?
The Finance Bill confirmed that tax relief on travel and subsistence would be removed for temporary workers that are subject to Supervision, Direction and Control (SDC) from April 2016. This will impact some temporary workers who had been reimbursed for travel and subsistence costs but companies like ICS have already created ‘SDC assessments’ for their customers and ensuring there is a suitable solution regardless.
To view the Finance Bill please click here and you’ll be redirected to GOV.UK and be able to view the full publication from HM Revenue and Customs.
If you’re a recruitment agency then it is important to ensure you are working with a compliant and informed supply chain which is prepared for the changes and has a solid understanding of the marketplace. Whether a worker is subject to Supervision, Direction and Control cannot solely be based on the hourly or daily rate charged whilst on assignment and the assessment has to be more detailed than simple ‘Yes’ or ‘No’ answers.
What are the options with ICS?
ICS has taken time to create an assessment that adheres to HMRC guidelines and ensures a confident conclusion can be sought. As a firm of regulated accountants we offer accountancy support to Limited Companies in addition to our Umbrella solution so we are confident there is a suitable solution for everyone regardless of their SDC status.
We are currently in the process of contacting all those using ICS Umbrella to carry out an assessment and ensure they are moved onto an appropriate solution if required.
If you’d like a copy of our Guide to SDC specifically for Agencies then please click here to request one. If you’d like to speak to someone in more detail, then please call the team on 0800 195 3750.
We’ve also created a flyer for temporary workers looking to use an umbrella company which you can view here.