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Reed case highlights the importance of compliance when operating Travel and Subsistence

Reed case highlights the importance of compliance when operating Travel and Subsistence

Following on from the recent story regarding Reed’s temps tax case and the implications it has on travel and subsistence schemes, the message from specialists Zeel Solutions remains the same it has from day one, that compliance is key when offering travel and subsistence arrangements.

The Reed case has highlighted a number of issues during 1998 and 2006 including the contractual relationship between the employee and employer, the implementation of the arrangement and the salary sacrifice itself.

Rav Cheema, Managing Director and founder of Zeel Solutions has always been adamant that the right advice which is very specialist must be sought when considering and implementing these arrangements in order to avoid any issues further down the line. Businesses should also be regularly reviewing their arrangements to ensure that they remain compliant on a quarterly or annual basis.

“We always aim to put our clients or potential clients in touch with the right people with the specialist knowledge required to give accurate tax, implementation and contractual advice from the outset in order to avoid any risks.

Businesses considering implementing these arrangements need to be aware that they not only need the correct advice from Tax and Employment Law specialists, but also need to ensure that they have robust systems in place to help manage and protect their arrangements on a day-to-day and long term basis,” said Cheema.

Zeel Solutions provide specialist solutions which enable recruitment agencies to offer travel and subsistence directly to their temporary employees whilst helping with compliance. Their market leading solution Ztravelex works alongside and integrates with existing payroll systems calculating the expenses and completes the important compliance checks within minutes.

Businesses should consider very carefully the companies they choose to help manage their arrangements as the processes are not as clean cut as people may think. It cannot be seen

as a simple payroll calculation. What is needed is a specialist solution which can accommodate complex calculations and formulate these processes on a daily basis so that key information is not over looked, and a simple calculation exercise from existing payroll systems cannot fully incorporate this.

“Having reviewed most of the leading recruitment payroll systems to manage these arrangements what became evident was the need for a specialist solution that took care of the specifics of travel and subsistence. Ztravelex is a specialist solution which takes care of the complexities of the calculation and day-to-day management of travel and subsistence.

What businesses should be doing if they have travel and subsistence arrangements is to ensure they have regular reviews for both their arrangements and their software solutions,” Cheema concluded.

If you require further information about Zeel Solutions or Ztravelex please call 0845 31 31 311.

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