The draft legislation for the Finance Bill 2016 was issued last Wednesday, two weeks after Mr Osborne’s Autumn Statement. There were no surprises, but it was confirmed that tax relief for travel and subsistence expenses would be restricted from April 2016 for anyone who is working for an intermediary who is subject to supervision, direction or control as to the manner in which they carry out the work.
The relevant section for Travel and Subsistence can be found by clicking here. The responses to the Travel and Subsistence consultation have also been published and can be viewed here.
Transfer of Liability will apply in certain circumstances and HMRC will provide more guidance on this. In summary it appears it could be transferred to Directors of the intermediary in the event that PAYE/NIC isn’t operated correctly and to anyone providing false information on supervision, direction or control.
An IR35 consultation has not yet been released but once we have more information we will share it with you. For contractors with their own Limited Company, if IR35 legislation does not apply, then relief can still be claimed.
ICS have been in contact with all our agency partners and will provide further updates once we have considered all the detail and the guidance from HMRC has been issued.
If you’d like to discuss anything in the meantime then please do not hesitate to get in contact.