New rules for Travel & Subsistence schemes and Personal Service Companies

New UK tax rules in 2016 

What changes are coming?

As the government clamps down on the escalation of tax relief arrangements and perceived non-compliance in the labour market, so dawns a period of unprecedented changes/proposals to employment tax legislation affecting the recruitment sector.

New rules coming into play in 2016 and beyond will have implications up and down the supply chain for end clients; agencies; umbrellas; Personal Service Companies (PSCs); and workers.

Many go wider than the recruitment sector, but the key changes are:

  • Withdrawal of tax relief for Travel & Subsistence (T&S) where a) an individual provides services through an intermediary where PAYE tax/NIC applies and there is Supervision/Direction or Control (SDC) and b) via a PSC where IR35 applies from April 2016
  • a series of confirmed and potential changes relating to PSCs, including dividend taxation, restrictions on employment allowance and the operation of IR35 – some effective April 2016, some likely April 2017
  • that transfer of debt provisions mean everyone in the contracting chain for labour needs to understand their risks

Are you ready for the changes?

As the world’s leading provider of HR Solutions, Adecco Group prides itself on compliance with legislation regulating our industry and on sharing our knowledge to help our customers navigate the complexities of the evolving working environment and how people work.

Toolkit for Employers and Workers

Tax Whitepaper 2016

Tax T&S reform: The implications for companies. 

Fill in your details below to download the Tax Whitepaper 2016.

Executive Summary

Read our Executive Summary for an overview of the new tax rules relating to Travel & Subsistence schemes and Personal Service Companies.

Executive Summary

Legislation Change - are you ready?

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Frequently Asked Questions

Guidance for workers - Frequently Asked Questions

Guidance for clients - Frequently Asked Questions