Tackling The Use Of Umbrella Companies

Released on: September 24, 2008, 3:37 am

Press Release Author: Clayton House

Industry: Accounting

Press Release Summary: Growing debate is forcing the Government to examine the
workings of umbrella companies that operate to the benefit of many self employed
contractors in the UK.

Press Release Body: Harpenden, UK, September 24, 2008 -- 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

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,
Press Release Submission By PressReleasePoint(http://www.pressreleasepoint.com)

Web Site: http://libertybishop.co.uk

Contact Details: Clayton House
Kim TotmanLiberty Bishop Ltd
3 Vaughan Road
Harpenden, Hertfordshire AL5 4EF
0800 055 6376

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