Are you against preferential tax benefits for offshore IT workers in the UK?

| 1 Comment
| More
I have been emailed an e-petition that someone has created.

These are the online petitions that get discussed by the government if they get a certain abound of signatures. I think it is 5000.

The e-petition I have been sent is all about Intra Company Transfers (ICTs). More specifically how workers brought to the UK on ICTs, often IT workers on projects in the UK, are paid a large portion of salary in expenses, which is not taxable.

In the end it makes the offshore worker much cheaper than the UK worker, hence making UK IT professionals uncompetitive.

The person that put the e-petition in linked to an article I wrote about this which should help explain.

The e-petition, which can be logged into here, asks for people's views on whether the HMRC should tax expenses paid to ICTs. If you have a view why not fill it in?

Enhanced by Zemanta

1 Comment

Coincidentally, Australia made a similar change to their LAFHA (living away from home allowance) tax break a few months ago so that migrant workers can not claim it unless they have a permanent home in Australia and are working away from that location.

The Australian government thought migrant workers and their employers were abusing the tax break. They estimate that an extra Aus$500million is taxes will be raised by the changes.

"salary and wages are increasingly being re‐characterised as exempt LAFHA benefits,
serving to erode the pay‐as‐you‐go withholding revenue base. An area of growing concern is the use of LAFHA by employers (including through labour hire and contract management companies) to
attract temporary resident workers to Australia by including tax‐free LAFHA payments as part of their remuneration. These payments are effectively a re‐characterisation of salary or wage income."

Leave a comment

Have you entered our awards yet?

About this Entry

This page contains a single entry by Karl Flinders published on October 24, 2012 1:08 PM.

General Motors insourcing: One off or trend? was the previous entry in this blog.

Over 100 reasons why local government shouldn't outsource is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.


-- Advertisement --