HMRC in umbrella expenses clampdown
HMRC have kept their promise of tackling abuse of expenses in umbrella companies. As of the 6th April the UK tax office has withdrawn the allowance for staff who stay overnight with friends or family. Officials at HMRC said it had found “no legal basis for giving tax relief” following a recent review of the Friends and Family Allowance. HMRC have therefore concluded that such an ‘overnight on business claim’ has not only been barred from any new dispensations but also slashed from all existing ones.
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