Travel and subsistence regulations, do you
comply?

As recently reported in Recruiter magazine, several recruitment
companies seem to be falling foul of regulations governing the travel and
subsistence scheme.

Travel benefit is a government
scheme which utilises the right for a worker to state his or her normal place
of work. The worker can then claim for travel and subsistence to and from their
work location, and their home.

The Inland
Revenue has approved this for UK
agencies, however agencies from other countries will need to negotiate the
right to use this scheme with UK Inland Revenue. Under this scheme, the worker
deducts a substantial amount for travel and subsistence from his or her tax or
national insurance (NI) contributions. Their respective agency then makes an
administration charge, which is also deducted from the workers usual tax or NI
contributions. The agency can then return the travel and subsistence payment to
the worker as a tax free payment. The worker is therefore better off, and so
too is the agency.

12 July 2010

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