The whole area of contractor claimed direct expenses has changed beyond recognition following a series of changes across recent years.
The first change was to employer related expenses removing dispensations and placing the responsibility on the employer. These changes also contained a test, 'Relevant Salary Sacrifice', that effectively prevents umbrella companies from reimbursing many expenses incurred; mileage is a notable exception.
Following this, and coming in to effect in the same year as the change to employer related expenses, was the introduction of the Supervision, Direction and Control, test. This removed one of the main features of overarching employment. Where SDC is present the workplace becomes permanent; there are no expenses allowed to a permanent place of work.
The combination of these 2 changes removed the ability for most contractors to claim expenses.
If that wasn't enough there was then a further change from April 2017 with the introduction of 'Optional Remuneration Arrangements'.
This further impacted umbrella providers as without very specific contract terms it removed the ability to reimburse any contractor expenses.
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