The Chancellor has recently announced: "The Government is concerned at the growing use of structures such as "umbrella companies" or overarching contracts of employment with employment businesses, to obtain tax relief for travel expenses that would not be available to other workers. It will monitor the use of these structures and, if necessary, consider action in the future."

HM Treasury and HM Revenue and Customs have published a paper called "Tax relief for travel expenses: temporary workers and overarching employment contracts". The proposals within the document aim to tackle umbrella companies that abuse expense dispensations and round sum allowances, and also claims for travel and subsistence reimbursed to employees.

The options indicated in the consultation document are:

* To introduce methods to tighten compliance and tackle non-compliance of the current IR35 legislation.

* To remove the entitlement for 'employees' of umbrella companies and other employment businesses using employment contracts to claim tax relief for travel expenses.

The latter option would obviously be bad news for employees of umbrella companies. Leading umbrella company, Liberty Bishop, will be responding to the government and invites you to send your comments on the effect that the new proposals will have, not only on individuals using umbrella company services, but on the contract and employment sectors as a whole.

Please send your comments to response@libertybishop.co.uk or write at:
Liberty Bishop Ltd, Clayton House, 3 Vaughan Road, Harpenden, Herts AL5 4EF, http://www.libertybishop.co.uk.
Press Release Submission By PressReleasePoint