Background
It used to be the case that if you worked through an employment solution and you intended to undertake multiple assignments then you would be able to claim tax relief on your travel and subsistence (T&S) expenditure.
However, on 6th April 2016 new legislation was brought in to restrict T&S tax relief. The relief was deemed to be unfair because staff employees who work alongside contractors cannot claim the same tax advantage.
The new rules will prevent a majority of workers who use the Champion employment solution from making T&S claims.
What does this mean for me?
To be able to claim any expenses you will need to be able to demonstrate that you are not considered to be under the Supervision, Direction or Control (SDC) of any person (working for the end client or agency) in the manner in which you undertake the assignment.
To assist you to clarify your SDC status, Champion have developed a robust assessment process that will be issued to you as soon as your assignment has commenced.
Note – your end client organisation must also partake in the SDC assessment process. A Champion advisor will provide more specific detail on this requirement before any process begins.
If you are able to satisfactorily pass the assessment then you will be able to claim all T&S expenses that are deemed ‘wholly, exclusively and necessarily’ to fulfil the terms of your assignment.
How do I know if I can claim?
Once Champion have reviewed your SDC assessment, along with the response received from your end client, we will communicate the result to you via email. This will occur within 48 hours of receiving all relevant information.
If you are able to claim your expenses then we will issue you with a full guidance pack to confirm your entitlements and the process we need you to follow when claiming.
How will my expenses be paid?
If you are incurring mileage then this will be calculated and processed within your pay on a weekly/ monthly basis.
If any other T&S expenses are incurred then these need to be claimed at the end of the financial year via a Self-Assessment Tax Return or P87. Champion will provide support with these claims.
If I can claim will I need to keep receipts?
Yes. It has always been the case that you should be able to provide evidence that a cost has been incurred for each expense.
For further information on expenses you can access our online expense form or read or guidance documents.