You may be aware that HMRC have proposed plans to change legislation making it more difficult for contractors to claim travel and subsistence.
At Exchequer Solutions we are concerned about this and the impact it could have on our contractors as well as the negative impact it could have on businesses and the economy as a whole.
The economy is showing strong signs of growth but we are acutely aware that the recovery could be derailed by any number of factors. Along with a group of other compliant and professional umbrella companies we have worked together and proactively voiced our concerns. This has involved our Managing Director taking part in face to face talks with HMRC and meeting with MPs to talk about his concerns and raise awareness of the valuable role umbrella organisations play. We have also been involved in a collective of professional and compliant umbrella companies in providing information which has been submitted to HMRC in an official response document.
The skills shortage is already threatening some sectors such as construction, engineering and IT and we believe that if these changes are implemented it could make the situation worse. One of our key concerns relating to the proposed changes from HMRC is that it will penalise workers who work away from home on temporary assignments. We believe that if the opportunity to claim travel and subsistence is taken away many workers will feel that working long distances from home is no longer viable. As a consequence it could significantly reduce the availability of flexible workers. A flexible workforce is one of the fundamental factors behind the UK Economy’s recent growth out of recession. In some areas of the UK where there are already significant skills shortages this could be particularly serious.
We are hopeful that common sense will prevail. In the meantime we will continue to work proactively to get the government and HMRC to listen and to try and ensure any changes are fair and don’t have a detrimental effect on our contractors or the UK workforce in general.
