Travel and subsistence regulations, do you comply?
July 2010 release
As recently reported in recruiter magazine*, several recruitment companies seem to be falling foul of regulations governing the travel and subsistence scheme.
Travel benefit is a government scheme which utilises the right for a worker to state his or her normal place of work. The worker can then claim for travel and subsistence to and from their work location, and their home. The Inland Revenue has approved this for UK agencies, however agencies from other countries will need to negotiate the right to use this scheme with UK Inland Revenue.
Under this scheme, the worker deducts a substantial amount for travel and subsistence from his or her tax or national insurance (NI) contributions. Their respective agency then makes an administration charge, which is also deducted from the workers usual tax or NI contributions. The agency can then return the travel and subsistence payment to the worker as a tax free payment. The worker is therefore better off, and so too is the agency.
Using the travel benefit module, an add on to the Safe Tempest product suite, an agency can fully automate the above process, and be sure to be in line with regulations governing this scheme. Should your recruitment agency not have the resources to handle this internally, Safe Outsourcing can provide this as a feature of outsourced payroll services. To find out more about how Safe software and service solutions could help your business, contact firstname.lastname@example.org or visit www.safe-tempestsuite.co.uk.
Source *Recruiter magazine http://www.recruiter.co.uk/1006015.article?cmpid=REC01&cmptype=newsletter
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