MPs call for a crack down on Tax and Subsistence expenses schemes
Stuart Davis, Chairman of the FCSA, responds to MP’s call for a crack down on Tax and Subsistence expenses schemes:
& lsquo;The disgraceful behaviour of companies operating unscrupulous tax avoidance schemes is completely unacceptable. It is a totally illegitimate practice which takes advantage of the low-paid worker on temporary contracts and the FCSA wholly condemns it.
& lsquo;The legislation does exist to clamp down on these illegitimate practices and the FCSA urges HMRC to show its teeth and exercise it now. If it doesn’t, we risk new knee-jerk one-size-fits-all legislation being imposed upon the flexible workforce which is a highly diverse group and therefore cannot be governed by blanket legislation. For example, if all tax free expenses are removed in order to crack down on salary sacrifice schemes, members of the flexible workforce who claim legitimate expenses will be severely penalised. Put simply, blanket legislation might protect one group whilst stifling another.
& lsquo;The flexible workforce makes a significant contribution to the British economy. At the highly skilled end, it consists of hundreds of entrepreneurs and pioneers who are helping to drive forward growth during current difficult economic times. They should not be punished or stunted in response to the illegitimate practices of unscrupulous employers which should be dealt with separately.’