REC recommendations adopted on travel dispensations
REC recommendations adopted on travel dispensations in pre-Budget Report
The pre-Budget Report announced that there will be a consultation on changes to National Minimum Wages rules so it is clearer how they interact with salary sacrifice schemes designed to give tax relief for travel and subsistence.
Commenting on this issue Anne Fairweather said: "The REC is delighted to see that the Government is moving to clarify this issue. In our response to the Government consultation on the use of tax relief for travel and subsistence in October 2008, REC argued strongly that when correctly applied these schemes are legitimate.
However we highlighted that the interaction between any salary sacrifice with minimum wage rules should be clarified. At the time of the consultation there was a risk that this form of tax relief for temporary workers would be completely withdrawn. The approach announced in the pre-Budget Report is the correct one and we will be consulting members on this matter in due course."