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Changes to Travel and Subsistence

The government will introduce legislation in the Finance Bill 2016 under S339A ITEPA 2003, to restrict tax relief for home to work travel and subsistence expenses for works engaged through an employment intermediary. This will mean the rules are the same as for employees.The changes take effect from 6th April 2016 and restrict the claiming of taxable reliefs on benefits claimed through PAYE known as Salary Sacrifice arrangements, which is the way we claim your tax relief through the Hamilton Bradbury Umbrella.Generally, employees cannot claim relief on their regular commute from home to work and back, the introduction of legislation is to ensure that only eligible workers can claim this relief.The S339A legislation is also known as IR35 and has broad scope. As a worker who is an employee of an Umbrella Company you are not caught by IR35 because the employment is taxable under PAYE however, the new rules SDC have to be applied when expenses are claimed.

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What it takes to be a Contractor

For lots of people who have actually made the leap into contracting already the advantages of the contracting working style massively surpass the disadvantages and it can be hard to understand why everyone isn't really doing the same thing. But for new contractors, or rather possible professionals, taking the final step far from their old work into the brave new world of contracting can typically be challenging. That's due to the fact that they rightly do their research and see that there are a variety of disadvantages to the way of life which for some people it might not be the right move.This post will discuss some of the main issue you may have.
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