Tuesday, December 2, 2008

The Albany Group Responds to UK Tax Rules Confirming Temporary Worker Travel Deductions

Albany’s expertise in contract and temporary worker management sheds light on Pre-Budget statement

Fort Lauderdale, FL (PRWEB) December 2, 2008 -- Global contingent workforce management leader Albany applauds the UK tax authorities retreating from a plan to deny tax benefits for travel expenses incurred by temporary workers.

REPRIEVE FOR TEMPORARY WORKERS IN THE UK
Alistair Darling, the UK Chancellor of the Exchequer delivered his second Pre-Budget statement on Monday 24 November. The statement was made against a background of global economic uncertainty. His central objective was to respond to the consequences of recession and to position the UK economy to take full advantage of the recovery when it arrives.

This announcement is very welcome, as it brings a degree of certainty to an industry that has been under attack from the UK tax authorities for a number of years
Immediately following the Pre-Budget statement, the UK treasury issued a statement relating to tax relief for travel expenses incurred by temporary workers.

Travel expenses tax relief
In July 2008, the UK tax authorities published a consultation document relating to the use of overarching contracts of employment for contractors engaged by staffing companies. In the consultation document HMRC expressed concern that the workers, by virtue of being employees, were obtaining the benefits of tax relief on their home-to-work travel costs, something to which employees are not normally entitled. This tax relief is available because in most cases the individuals are working at a succession of temporary workplaces, rather than at a permanent workplace.

Following consultation, the Government has decided to leave the current rules around tax relief for travel expenses unchanged. However, in the light of evidence from the consultation confirming poor levels of compliance in this area HMRC will refocus its efforts to ensure that the current rule is properly applied. If compliance does not improve, the Government may return to the issue at a later date.

Expert view
“This announcement is very welcome, as it brings a degree of certainty to an industry that has been under attack from the UK tax authorities for a number of years,” said Martin Glick, group chief executive officer and founder, explaining that “changing the current rules, particularly in this economic climate, would have had an adverse financial effect on both temporary workers and the users of those workers.”

Albany’s knowledge and comprehensive infrastructure spans 6 continents and 70 countries. Through its dedicated global compliance department and regional offices supported by a global network of specialists, Albany determines the most cost-effective way to hire contract workers, while providing the local infrastructure to engage, pay, and ensure compliance with all local labor, tax, and immigration regulations.

About Albany
Albany, payroll, management and compliance, Managed Service Provider programs, recruitment process management and consulting, compliance audits, and visa & migration services.

Contact:
Jason Posel
Senior Vice President
1-800-664-5508
Jason.Posel(at)thealbanygroup.com
www.thealbanygroup.com/usa

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: www.HRmarketer.com) on behalf of the company listed above.

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