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Temporary workplace expenses changes from 6th April 2014
Starting on the 6th of April this year, HMRC is introducing new rules for tax relief on travel expenses for contractors.
The changes are part of a range of new measures designed to reduce tax avoidance.
The new rules state that if you are under the supervision, direction and control (SDC) of your hirer then you can no longer
claim travel and subsistence expenses if you work in the same place all the time, or to your main base or site.
Supervision
Is someone overseeing you doing work, ensuring that you are doing the work you are required to do, and that it is being done correctly and to the required standard.
Direction
Is someone making you work in a certain way by providing instructions guidance or advice as to how the work must be done.
Control
Is someone dictating what work to do and how you go about doing that work. it also includes someone who has the power to move you from one task to another.
Travel and Subsistence
If you work in the same place all or most of the time then the new rules say that you can no longer claim for tax relief on travel and subsistence costs to your normal workplace if you are subject to SDC. Mileage, train and bus fares and the £10 a day meal rate will no longer be allowable expenses.
If your assignment involves travelling to different sites then travel claims may still be allowed to these sites. If you have a base/depot that you visit regularly then this will be classed as your normal workplace and travel claims will not be allowed from home to the base/depot.
Other expenses
Other expenses such as tools, training and PPE will still be allowable but no longer on a week by week basis.
These claims must now be submitted to HMRC via Form P87 or through self-assessment at the end of the tax year.
If you wish we will still log and keep a record of your expenses for you and assist by providing figures and adviceat year end for your claim.
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