|
Parasol PAYE umbrella company
Over 32,000 satisfied contractors. Get paid quicker. Call 0800 5836000. |
HMRC continues to investigate umbrella companies and other businesses who may be breaking the law in the way they reimburse travel and subsistence expenses to their 'workers'.
Initial consultation
In July 2008, the Treasury published a paper, "Tax Relief for Travel Expenses:temporary workers and overarching employment contracts", to herald the start of a consultation process looking at how temporary workers were "reimbursed" travel and subsistence expenses.
The Government wanted to clamp down on businesses who "seek to obtain a tax and National Insurance advantage by the creation of a purported overarching employment contract which is intended to enable temporary workers who would not otherwise be entitled to tax relief on travel and subsistence expenses to gain such tax relief."
Following responses to the paper, HMRC started to identify any employment businesses and umbrella companies which, in its view, were running businesses which contravened tax, NI and minimum wage legislation.
Areas of continuing concern to HMRC
According to HMRC brief 50/09 which was published this week, the following areas are currently being investigated further:
- Potentially ineffective overarching employment contracts.
- Dispensations which are invalid, or which have been wrongly applied.
- Not complying with the terms of the dispensation.
- "Expense payments" made tax-free without that level of expense, or in many cases any expense, having been incurred
- Potential illegal deductions from workers' pay.
- Ineffective and sometimes unlawful management processes; and
- Breaches of national minimum wage.
More information
- You can read the original 2008 consultation document here.
- You can find out more on the HMRC site.
- Read our popular article discussing umbrella companies and expenses dispensations.
| Our Partners |
|
Parasol PAYE umbrella Award winning service |
|
Contractor Accountants Full Service, Fixed Fee! |
|
Free Umbrella Company Save over £1400 p.a. |
|
ClearSky Accounting From £95 per month |
|
Fixed Fee Accounting Contractor Specialists |
|
Umbrella4Contractors Low fees, same day setup |
|
Free IR35 / Tax Review Call ICS - 0800 195 3750 |
|
Umbrella Co. Solutions Only £19.95 per week |
|
PRINCE2, MSP & M_o_R Maven Training |
| Contractor Insurance |
|
Hiscox Office Insurance Instant Online Quote |
|
IR35 Insurance Essential Protection |
|
Income Protection If you're unable to work |

| Contractor Services |
|
Compare Insurance Deals PI & Business Liability |
|
Contractor Ltd Company Instant online formation |
|
IT Contractor Pensions The last great tax break |
|
Private Medical Insurance Tailored contractor cover |
|
IT Contractor Mortgages Based on hourly rates! |
|
Protect Your Income Get a PHI quote |
|
IT Contractor Life Cover Protect your dependants |
|
Critical Illness Cover Comprehensive cover |
| IT Contractor Guides |
|
Contractor Umbrella Umbrella Co. Guides |
|
Limited Companies IT Contractor Guide |
|
Contractor Accountants Accountancy Directory |
|
Corporation Tax IT Contractor Guide |
|
IT Contractor Mortgages How to get the best rates |
|
Contractor Insurance Are you covered? |
|
PAYE Umbrella Company How umbrellas' operate |
|
Limited or Umbrella? Which company structure? |
|
Security Clearance How do you get it? |
|
IR35 Insurance Tax investigation cover |
|
IR35 Contract Contract review guide |
|
Professional Indemnity IT contractor cover |
|
Umbrella Companies Links to key providers |
|
Parasol Umbrella Company 'My Parasol' portal |
Stay up to date with our RSS feed | Terms of Use | About Us | Directory | Site Map | MSC Legislation | Income Shifting
Copyright © 2006-9, Contract Eye Limited, All Rights Reserved.
UK Contractor Guides, Contractor Accountants, Umbrella Companies, IR35, Insurance, Contractor Mortgages
Design by Blue Egg Web Agency