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REC response to Early Day Motion on travel and subsistence schemes

REC response to Early Day Motion on travel and subsistence schemes

“We welcome the continued pressure on the Treasury and HMRC to improve enforcement against questionable travel and subsistence models being promoted by some umbrella and payroll companies. However, we must not lose sight of the fact that are also some legitimate schemes and legitimate providers who do an excellent job for flexible workers across the labour market.

“To create a level playing field HMRC’s enforcement activity against rogue providers must be swifter and more visible if it this critical issue is to be tackled. The current situation, where we have convoluted guidance that is open to interpretation and little perceptible action from the Revenue, puts recruiters who abide by the rules at a real disadvantage and leads to both workers and the Treasury losing out on income.

“Employers also have a role to play here. The large supermarkets and logistics companies could get rid of these schemes overnight if they audited their supply chains.”

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