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Umbrella company travel expenses - SPA to take key role
Posted Aug 4, 2008
The Service Providers Association (SPA), which represents contractors, intends to take a key role in the forthcoming consultation on travel expenses for umbrella company contractors.
HMRC published its paper, "Tax Relief for Travel Expenses:temporary workers and overarching employment contracts", in late July.
The Government's clear aim is to investigate contractor umbrella companies who may have been operating in a non-compliant manner. The new paper is a statement of intent to clamp down on unscrupulous umbrella company operators.
The SPA (which comprises Brookson, Giant, JSA and PayStream) says that it "welcomes any moves to introduce rigorous and effective control of the umbrella market to ensure that only legitimate and fully compliant organisations can offer their services. This is in the best interests of both the contractor and their support companies."
Acting-chair of SPA, Matthew Brown, said:
"SPA intends to be a key player in the consultation process and will vigorously campaign on behalf of all contractors. Whilst we support the Government's clamp down on non-compliant practises, we believe that there are contractors working in a completely complaint fashion that are legitimately entitled to claim travelling and subsistence expenses in the performance of their duties. Any legislation introduced at the end of the consultation period needs to take this into consideration.
"We are also concerned that the implementation of any new legislation in the temporary labour market may have far-reaching and unintended consequences for the industry and economy as a whole. We are committed to working closely with Government to help ensure this does not happen."
If you use an umbrella company, make sure you read our additional articles relating to umbrella company travel expenses.
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