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Responding to the HMRC discussion document released this week on the tax relief for the expenses of temporary workers, Matthew Brown, Managing Director of giant group comments:

“While this consultation was expected, it presents a number of concerns for us and the contractors that are employees of giant. The proposals suggest that the government will either take away the ability to claim travel and subsistence for umbrella employees and those working under PSCs or remove the ability to claim travel and subsistence for umbrella employees only.”

“This will understandably cause a level of apprehension for contractors and we would not want to see any professionals negatively impacted simply because they have chosen a flexible employment route. I would also urge the government to consider the potential consequences of such a move. In particular, removing the ability to claim tax relief for just umbrella employees could result in a rush for workers to operate under a PSC for the wrong reasons.”

“And while giant will certainly be lobbying the government through its involvement with the Freelancer and Contractor Services Association (FCSA), the short timeframe is a concern. We will ensure that, through our network, our argument is put forward on behalf of the contractors we represent.”

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