With some of the most radical legislation changes being introduced to the UK contracting market from April 2016, we have been working constantly with our legal advisors, accountants and trade bodies to ensure we have the most up to date information to be able to restructure our UK offering to accommodate the changes and still offer the highest level of compliance to our valued clients and contractors.
From April this year, umbrella company workers can no longer receive tax relief on travel and subsistence expenses if they are working under or have the right to supervision, direction and control (SDC) from the end user.
It is the responsibility of the end user to confirm if the contractor is working under SDC. In most cases, CXC does not have a direct relationship with the end user to enable us to determine whether SDC is in place, we believe it will be very difficult to source this information, furthermore we believe the right to SDC could change at any time during the contract engagement and that this would be very difficult for agencies and umbrella companies to monitor and control.
Our commitment to our clients and contractors has always been to provide a fully compliant low risk service, rather than focusing on maximising take-home pay. We want to provide a fair and compliant service that our clients and contractors can trust, with no hidden surprises.
We have reviewed our service offering in the UK and believe we offer one of the most competitive services whilst still maintaining high service levels. In summary we do not believe that Umbrella companies can continue to operate as they have in the past and are consequently offering a new range of products for the UK market. Please speak to one of our consultants for more information.