Shedworkers and homeworkers at risk in new Government tax plan
Shedworkers and homeworkers at risk in new Government tax plan
The Association of Taxation Technicians (ATT) has cautioned the UK Government against shifting the rules on travel expenses if they harm homeworkers.
Michael Steed, President of the ATT, said: “The Government has published a discussion paper which proposes changes to the current, sometimes complicated, rules on travel and subsistence for employees and under these proposed changes, homeworkers, who make a significant contribution to Britain’s successful flexible labour market, may be denied tax relief on travel between their home work base and their employers’ work places. We would not wish to see any of these arrangements disturbed by a disadvantageous shift in the travel and subsistence rules.”
One of the Government’s proposals is that employees who work in more than one location for more than 30 per cent of their working time should be allowed to choose which one of those locations or bases is their main working base. They would then be unable to claim tax relief on the travel costs incurred on journeys between home and that agreed main base.
However, the Government also proposes to deny homeworkers the ability to choose their home as their main base, if they have a base somewhere else, such as their employer’s head office, therefore denying relief on travel between their work place at home and the head office.
Michael Steed added: “It is unfair that homeworkers may not be allowed to nominate their home as their main base under the proposals. It could result in tax relief being denied on what is, in effect, legitimate business travel. This would leave either employers or employees out of pocket and could lead to some employees giving up their jobs. It feels like a backward step to consider denying tax relief on travel costs in this way, given the increased trend in homeworking. We urge the Government to consider carefully the implications of their proposals.” --------------------------------------------------------------------
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Shedworkers and homeworkers at risk in new Government tax plan
