Business tax: Travel and subsistence
The CIOT's Low Incomes Tax Reform Group called for a comprehensive review of travel expenses. Responding to a Treasury consultation on addressing 'potentially exploitative arrangements' implemented for some temporary workers paid at or near the national minimum wage (NMW) LITRG said the consultation document failed to separate several key issues. 'Due to differences in calculating income and allowances for tax NICs NMW and means-tested benefits the current system can produce some arguably illogical results which make matters almost impossible for most workers to understand ' LITRG argued. 'This can in turn mean that people make poor choices when offered salary sacrifice arrangements by their employers through failing to appreciate the consequences of their decision.'
The ICAEW Tax Faculty warned that the Treasury's proposals could have many unintended consequences including 'the negative financial impact on almost all the workers that...
