Travel and subsistence (T&S) schemes

Travel and subsistence schemes can breach the GLAA’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.  

Current guidance

GLA Brief 39 provides information on how the licensing standards affects businesses operating travel and subsistence schemes in general. We 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 GLAA does not consider pay day by pay day tax relief models to be compliant with the licensing standards.  In particular they are likely to breach licensing standard 2.1 and licensing standard 2.2. 

We are 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 GLAA finds it to breach the licensing standards. Please contact us to discuss how you are operating or plan to operate at licensing@gla.gov.uk

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