Travel and Subsistence expenses relief

You may have noticed that we have been a little quiet on the subject of changes to the treatment of Travel and Subsistence expenses relief for contractors and freelancers. This has been for a number of reasons – not least as there has been a noticeable lack of information coming from HMRC and a surprising absence of any mention in the March Budget.

Behind the scenes, the One Click Group have been reviewing our services and developing them to ensure that we can offer a valuable service to our contractors and clients and we will be issuing more information on our new product range over the coming days.

In addition to our existing standard umbrella and limited company accountancy services, we will also be able to provide outsourced payroll for recruitment agencies and hirers and will also be introducing a tiered umbrella service, designed for those workers who do not fall under SDC.

We will also be offering a new Limited Company accountancy service that will benefit workers who are on long term contracts but have traditionally avoided setting up limited companies due to the perceived administration burden.

Supervision Direction and Control (SDC)

As an industry, we anticipated that we would receive some guidance from HMRC on how the thorny issue of SDC would be operated and policed in the real world some time before the changes take place. It appears now that this is not the case and according to the Customer Product and Process Team at HMRC, we have everything we need at the moment and guidance will be issued on 6th April.

This gives us precisely no time to review the guidance before we have to deal with the issues.

Why we are surprised at this is unclear as we know from past experience that HMRC are not the most verbose when it comes to communicating changes.

We need to be pessimistic

There have been suggestions from some individuals in our industry that there could be some last minute reprieves. There have been rumours of exemptions for certain categories of workers, rumours of very narrow definitions of SDC that would allow many contractors to continued to claim T&S.

Our view is that rumours of any last minute changes have been greatly exaggerated and that we must assume that everything that was announced in the Autumn Statement will go through unchanged.

Where do we go from here?

We know from speaking with many recruitment agencies, hirers and contractors, that after 6th April there will remain a demand for payment intermediaries – these may be umbrella companies or accountants, and it is those companies that take a compliant approach that will thrive in the new environment.

We believe that we will see closer relationships between providers and clients in the post 6th April world. Rather than providing a “one size fits all” approach, shoehorning contractors into arrangements that might not benefit them (as some companies have done in the past), we will hopefully see a maturing of the market where providers offer a range of compliant services.

What are One Click Doing?

We have always taken a compliant approach and pride ourselves on providing services that give the best possible outcomes for our contractors and clients. This approach will not change and indeed we have developed our product range to maintain the relationships we have with our clients.

We will provide details of the systems and services that are already live behind the scenes over the next few days.

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