Employees are not generally able to offset the costs of travelling between their homes and their workplaces, even where the employees are working on short term contracts for a number of different employers.
Workers supplied by agencies and other intermediaries are increasingly entering into a single contract of employment with the intermediary, which then supplies the workers to different businesses.
The intention is that the ‘over-arching’ contract separates the workers’ usual workplaces, which will be the intermediary’s place of business, from the places where they actually supply their labour, with the result that the employees are able to claim tax relief on the costs of travelling from their homes to the places that they work.
The government has announced that they will bring forward legislation in Budget 2015 to combat this sort of planning and that they will publish a discussion paper shortly as part of their review of the rules in this area.
This review heralds a further tightening of the rules on employment through intermediaries and will increase the pressure on companies to employ workers directly.