Autumn Statement - Analysis

Employment intermediaries - tax
relief for travel and subsistence:
Despite numerous representations against
the proposals, the Government has
confirmed that it will proceed with legislating
to restrict tax relief for travel and
subsistence expenses for workers engaged
through an employment intermediary, such
as an umbrella company or a personal
service company. In effect, working through
an employment intermediary is likely to
become much more costly than simply
being self-employed. This change will take
effect from 6 April 2016, indicating storms
are on the horizon for the umbrella company
industry.
Employee share schemes -
simplification of the rules:
The Government will introduce a number of
changes to “simplify” aspects of the tax
rules for employee share schemes. Few
details have been announced, though
readers will be mindful that the Revenue
have been known to look to introduce less
favourable tax rules under the auspices of
“simplification” – such as the proposed
“simplification” of inheritance tax on trusts.
We are informed that these changes are
intended to provide more consistency,
including putting beyond doubt the tax
treatment for internationally mobile
employees of certain employment-related
securities (ERS) and ERS options. The new
rules will be introduced under Finance Bill
2016.
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