PRISM has launched a ‘Yes2T&S’ campaign in an attempt to force George Osborne to think again before letting the proposed changes to Travel & Subsistence (T&S) rules come in next April. The proposals which could affect Britain’s 1.6 million contractors will introduce what PRISM is describing as a ‘devastating stealth tax’ on these workers.
Under the proposals HMRC will largely axe the ability of contractors to claim much needed travel relief to temporary workplaces cutting take home pay by an average of 20 per cent overnight, PRISM research shows. Contractors of all kinds from teachers and engineers to IT workers and nurses can go to the PRISM website to find out how to take part: http://www.prism.contractors/yes2tands/
Contractors have always received travel relief to temporary workplaces because, as itinerant workers, their travel arrangements are unpredictable, savings available to ordinary commuters are not available to them and they often travel further afield for longer. Contractors plug vital skills shortages and T&S has been one of the few benefits given they do not enjoy the same access to sick pay, holiday pay and pensions rights. According to PRISM, if employers were to make up the shortfall it could cost them £7 billion.
PRISM CEO Crawford Temple said: “These changes will hit up to 1.6 million contractors in the pocket and leave them facing a 20 per cent pay cut overnight. Flexible workers travelling to temporary workplaces often over large distances should not be being penalised like this. It is unfair and unworkable.
“The taxman believes he is taking a undeserved perk away from people playing the system. We know different,” Temple continued. “We are enlisting the help of our MPs because they understand the concerns of constituents who will regard this as a stealth tax and an attack on the hundreds of thousands of contractors depended on by private business and public bodies to fill temporary skills shortages.
“I urge George Osborne and his colleagues to think again before the damage to employers and workers is done,” he concluded.