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PRISM tackles Osborne with contractor stealth tax campaign

PRISM hopes the Yes2T&S campaign will force George Osborne to think again before Britain’s 1.6m contractors lose out to changes to Travel & Subsistence (T&S) rules this April.

HMRC will largely axe the ability of contractors to claim much-needed travel relief to temporary workplaces cutting take home pay by an average of 20% overnight, PRISM research shows.

Contractors have always received travel relief to temporary workplaces because, as itinerant workers, their travel arrangements are unpredictable, savings available to ordinary commuters are not available to them and they often travel further afield for longer.

Contractors plug vital skills shortages and T&S has been one of the few benefits given they do not enjoy the same access to sick pay, holiday pay and pensions rights. 

If employers are forced to make up the shortfall it could cost them &pound7bn, PRISM says.

PRISM CEO, Crawford Temple, commented, “These changes will hit up to 1.6m contractors in the pocket and leave them facing a 20 per cent pay cut overnight.

“Flexible workers travelling to temporary workplaces often over large distances should not be being penalised like this. It is unfair and unworkable. 

“The taxman believes he is taking a undeserved perk away from people playing the system. We know different.

“We are enlisting the help of our MPs because they understand the concerns of constituents who will regard this as a stealth tax and an attack on the hundreds of thousands of contractors depended on by private business and public bodies to fill temporary skills shortages.

“I urge George Osborne and his colleagues to think again before the damage to employers and workers is done.”

Contractors of all kinds from teachers and engineers to IT workers and nurses can find out how to take part in the Yes2T&S campaign on the PRISM website.

PRISM is a not-for-profit trade body whose members service the needs of contractors across the UK. 


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