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Temps should be allowed to claim tax relief for travel, says REC

The REC has responded to the Government’s consultation on temporary workers’ access to tax relief for travel, arguing strongly that there are circumstances where temps should continue to receive this benefit. 

Commenting on the response, Anne Fairweather, Head of Public Policy said: “The REC is convinced that there are clear examples where temps and contractors should be able to access tax relief for travel expenses.  It is of interest to all that a small number of temporary workers are encouraged to travel regularly, whether it is to provide labour at short notice, where it is not available locally, or to provide skills across the country.” 

The consultation outlined concern that the current system is being abused.  On this matter, Anne Fairweather continues: “The REC recognises that there are some agencies and umbrella companies that are not offering travel dispensations correctly.  This matter should be tackled however the response must not be disproportionate to the problem itself.   

“The HMRC should tighten up their own procedures to ensure that dispensations are not overly generous and that those that have been granted are not being abused.  Tough, co-ordinated, enforcement should help sort this problem out.” 

The REC’s response can be viewed at http://www.rec.uk.com/traveldispensations.