Buried amongst the headlines of today’s Pre Budget Report (PBR) came the news that the Government had listened to contractors, compliant umbrella companies, agencies and trade bodies. Under the heading “Helping People Fairly” the Treasury has “…decided to leave the current rules (Tax relief for travel expenses; temporary workers and overarching employment contracts) unchanged.” This is great news for contractors who work for Parasol and means that the risks that contractors take in finding work, travelling and working hard have been recognised. Treasury goes on to suggest that HMRC will refocus its efforts on ensuring poor levels of compliance are addressed. A measure Parasol wholeheartedly agrees with and promoted as the correct solution through lobbying and consultation directly and via the Service Providers Association (SPA).
Parasol has always promoted the accurate and ethical claiming of expenses and has never put contractors’ livelihoods at risk. In some ways, the news in today’s PBR vindicates that stance.
We will continue to work with HM Treasury and HMRC to ensure contractors’ and freelancers’ unique place in the UK economy is recognised and understood. We welcome this sensible approach by the Government in times which are already challenging enough.
by Rob Crossland
Pre budget delivers a sensible result for umbrella contractors
November 24, 2008 in Business Expenses, Industry comment
Buried amongst the headlines of today’s Pre Budget Report (PBR) came the news that the Government had listened to contractors, compliant umbrella companies, agencies and trade bodies. Under the heading “Helping People Fairly” the Treasury has “…decided to leave the current rules (Tax relief for travel expenses; temporary workers and overarching employment contracts) unchanged.” This is great news for contractors who work for Parasol and means that the risks that contractors take in finding work, travelling and working hard have been recognised. Treasury goes on to suggest that HMRC will refocus its efforts on ensuring poor levels of compliance are addressed. A measure Parasol wholeheartedly agrees with and promoted as the correct solution through lobbying and consultation directly and via the Service Providers Association (SPA).
Parasol has always promoted the accurate and ethical claiming of expenses and has never put contractors’ livelihoods at risk. In some ways, the news in today’s PBR vindicates that stance.
We will continue to work with HM Treasury and HMRC to ensure contractors’ and freelancers’ unique place in the UK economy is recognised and understood. We welcome this sensible approach by the Government in times which are already challenging enough.