A group of MPs today stepped up pressure on the government to take action on travel and subsistence expenses schemes.
Led by Labour MP Michael Connarty, the group of five has produced an Early Day Motion calling for action in the 5 December Autumn Statement on the schemes run by some temporary labour providers.
Early Day Motion 764 calls on the government to “investigate systematically and in depth all companies known to be using these schemes, to grant HM Revenue & Customs the power and resources to enforce current legislation and to commit to amending legislation to ensure travel and subsistence tax avoidance schemes are not used in the future”.
In the motion, the schemes are said to “artificially classify part of a worker’s pay as expenses, allowing the employer to save to save on tax, while failing to provide the worker with the benefit”.
HMRC estimate such schemes, which hit the national headlines last month, will cost the treasury £650m in the 2012-2013 financial year.