In the official documentation, further action is also planned to tackle the use of ‘overarching contracts’ by some umbrella schemes to further exploit expenses rules:
2.147 Overarching contracts of employment and temporary workers
The government will review the increasing use of overarching contracts of employment by employment intermediaries such as ‘umbrella companies’. These arrangements enable workers to obtain tax relief for home to work travel that would not ordinarily be available. The government will publish a discussion paper shortly to inform possible action at Budget 2015.
So, what does this mean for the umbrella company industry?
Lisa Keeble, Co-Founder of All Umbrella Companies Are Equal, comments at http://www.itcontracting.com/umbrella-company-autumn-statement/