Travel and subsistence (T&S) schemes
Travel and subsistence schemes can breach the GLA’s licensing standards.
It is vital that any business operating, participating in, or intending to operate or participate in a scheme, reviews the following information.
GLA Brief 39 provides information on how the licensing standards affects businesses operating travel and subsistence schemes in general. The GLA is aware that there are various schemes being operated. Therefore, you should check that the particular scheme in place complies with the relevant licensing standards.
Pay day by pay day tax relief model
The GLA does not consider pay day by pay day tax relief models to be compliant with the GLA’s licensing standards. In particular they are likely to breach licensing standard 2.1 and licensing standard 2.2.
The GLA is aware that some advisers are continuing to advocate the use of these schemes, whilst other payroll providers have now ceased applying the “pay day” model.
If your company is operating a pay day by pay day tax relief model your licence may be at risk of revocation if the GLA finds it to breach the licensing standards. Please contact us to discuss how you are operating or plan to operate at email@example.com
Find out more...
GLA Brief Issue 39: Travel schemes and umbrella companies
GLA success in challenge over "pay day by pay day" schemes: Press release
FS Commercial Limited: Appeal decision - this includes judge's comments on the legalities of T&S schemes.
Pay day by pay day tax relief models: HMRC statement July 2011
Pay day by pay day tax relief models and dispensations: HMRC statement August 2012