With travel and subsistence relief thought to be coming to an end in April 2016, the CBI, on the behalf of employers, the REC for recruiters, the CIPD that looks after HR team interests and the FCSA, on behalf of freelancers and independent contractors, have all come together and appealed for a rethink.
All believing that the government has drastically underestimated the impact that this money-saving initiative will have, the four agencies have asked contractors and any other businesses or individuals that will be affected by the benefit ban to complete a short survey that they have made available online. It can be done totally anonymously. With the answers collated, the agencies want to put forward a united and compelling case to the Government to keep the benefits in effect.
More than three-quarters of a million professionals are expected to be significantly worse off for the benefit ban. But it’s not just the individuals that will suffer, as bigger businesses that rely on hiring contractors will also feel the brunt, as they will be expected to significantly up rates of pay to attract suitably skilled workers from further afield. With no travel allowances in place, daily rates will necessarily have to go up, or roles will go unfilled and projects will be left unfinished.
The FCSA had some final thoughts on the matter;
“The UK’s continued shortfall in productivity levels will be of major concern to UK employers and its workforce and the impact of removing Travel and Subsistence tax relief will exacerbate the situation. It seems that the Government is simply paying lip service when it claims to value the freelance workforce; otherwise it would not be going ahead with this legislation that will penalise this group of workers and the companies who benefit from their niche skills. There is no joined-up thinking in the Government’s approach and the UK economy will suffer.
Article: PayGroup PLC