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Office Hours: 9am to 5.30pm

Tax relief on travel and subsistence – Draft Legislation

Today’s the day – we now have sight of the responses to the Government’s consultation on Travel and Subsistence relief and more importantly, the draft legislation and guidance.


As you can imagine, this being HMRC information, it is long and complex and will take some time for us to read and digest.

Level playing field?

What we can say, from our initial reading of the draft legislation is that the Government have pressed ahead with their desire to stop workers claiming tax relief on their travel and subsistence, if they are engaged through an intermediary, if they are under the supervision, direction and control of the engager (SDC). Or indeed subject to the right of SDC.

The intention of the legislation was to “level the playing field” for workers doing similar jobs where the contractor could claim tax relief and the equivalent permanent worker could not.

One Click Group lobbied on behalf of contractors to have the legislation altered from the initial discussion phase to reflect that contractors have given up the right to job security and certain benefits in order to provide a valuable service to the UK economy. It was, and still is, our opinion that workers who have taken the decision to provide their services as part of the UK’s flexible work force should be allowed to benefit from certain tax advantages in exchange for the loss of many employee benefits.

It seems that this opinion is not shared by Government and it is our view that many hard working contractors will be hit in the pocket from April 2016.

The way ahead

We will be taking time to review the documentation in more detail and will be issuing publishing further articles over the coming weeks and months. We hope that we will receive more guidance on the definitions of Direction, Supervision and Control and some additional information around how the legislation will be policed.

We will look at how the industry responds to the draft and will make sure that we are in a strong position to look after the best interests of our contractors and clients.


As a compliant umbrella provider, we always engage closely with our agencies and clients and would be more than happy to discuss the implications of the new legislation in more detail. Communication is key and don’t forget, it’s business usual until April 2016.

So what is your opinion?

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