Travel & Subsistence Relief/The “Future” of IR35: A status by-pass

    We have very grave concerns about these two consultations and have responded to HMRC accordingly. To read a summary of the Abbey Tax consultation responses, you can click on the thumbnails below; to read both consultation responses in full, please go to
    We believe that if the consultation on Employment Intermediaries and Tax Relief for Travel and Subsistence is implemented to encompass Personal Service Companies and the status tests for IR35 are reduced to ‘supervision, direction or control’ alone, then you can be sure that:
    • All Engagements will be subject to supervision, direction or control because the definitions of supervision and direction are so wide-ranging.
    • If there is any chance of the liability falling upon the engager, they will deem all engagements to be caught by supervision, direction or control.
    • If that happens then unless engagers increase day rates to contractors, the incentive to be an independent contractor will disappear almost entirely.
    • Contractors will not travel significant distances to find work; sectors with specialist needs – and this includes the public sector – will lose skills.
    And yet HMRC has both IR35 and the Managed Service Company Legislation available to it to ensure that the current under-compliance is rectified.

    Please click on the thumbnails below for a summary of the responses or to read both consultation responses in full, please go to


    Abbey Tax Response to HMRC Consultation on Employment Intermediaries and Tax Relief for Travel and Subsistence, published 8 July 2015