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Temporary workers - deductibility of subsistence expenses

25 January 2023 / Alastair Kendrick
Issue: 4873 / Categories: Comment & Analysis
Expenses not allowed

Key points

  • Mainpay Ltd appeal concerned expenses of workers engaged by an intermediary.
  • Tribunal ruled that the work locations should be considered permanent places of work so expenses paid would be taxable.
  • ITEPA 2003 s 44 restricts some workers’ claims for travel and subsistence expenditure.

Over recent months we have seen a fair amount of press publicity surrounding umbrella companies and their tax compliance. Here is another case which involves an umbrella company – it was heard before the First-tier Tribunal on 14 to 16 November 2022 with the decision released on 21 December 2022 (TC8678). The case relates to the expenses claimed as tax free by those engaged by Mainpay Ltd – the intermediary/umbrella company.

Company’s view dismissed

Mainpay Ltd had taken the view that it had an agreement with the workers to the effect that when workers had been moved from one work location to another...

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