Monday, January 04, 2016

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.” --------------------------------------------------------------------
Monday posts are sponsored by garden2office, the Swedish garden office specialists. Click here for more details.

1 comment:

  1. As always the government is not for the environment, it is strictly for taxes.
    We are the electoral yet we have absolutely no say in which way the government decided to rule.
    In 2020 December a New and Improved European Build regulations comes into effect, which is not just going to completely change the UK building regulation but also set new standards for heat efficiency. U values and builds type.
    About time actually, as most buildings that sold in the UK, say first time buyers homes are inadequate, cheap and badly insulated.
    Most home offices sadly are over priced and very inadequate when it comes to insulation.
    What we need is a new bill in parliament that protects needless driving in the UK.
    If you have to travel say 50 miles or more to your work place, then a home office should be considered as an environmental must.