Travel expense tax relief probe

The government could crack down on the “abuse” by some umbrella organisations and employment agencies of the rules around tax relief for travel expenses claimed by temporary workers. The Treasury has launched a consultation on “Tax relief for travel expenses: temporary workers and overarching contracts”. Whitehall is concerned umbrella companies and some employment agencies make use of overarching contracts to enable some temporary workers to claim tax relief for travel expenses not available to others in similar circumstances.