Temporary workers should be allowed to continue to claim tax relief on travel expenses.
The Recruitment and Employment Confederation (REC) was responding to a government consultation on the relief.
Concerns have been raised that the relief is open to abuse.
However, the REC argued that the relief was important in encouraging temporary workers to travel.
Anne Fairweather, head of public policy at the REC, said: “The REC is convinced that there are clear examples where temps and contractors should be able to access tax relief for travel expenses. It is of interest to all that a small number of temporary workers are encouraged to travel regularly, whether it is to provide labour at short notice, where it is not available locally, or to provide skills across the country.”
On the question of the system being abused, Ms Fairweather added: “The REC recognises that there are some agencies and umbrella companies that are not offering travel dispensations correctly. This matter should be tackled; however, the response must not be disproportionate to the problem itself.
“HMRC should tighten up their own procedures to ensure that dispensations are not overly generous and that those that have been granted are not being abused.”
Date:14 October 2008
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