Compliance is key for offering Travel and Subsistence

Travel and Subsistence solution providers Zeel Solutions have welcomed the recent publication by HMRC of a Business Brief on the application of Tax, National Insurance and National Minimum Wage legislation.

HMRC says it has identified ìa number of concernsî which are the focus of ìmore detailed, ongoing investigationî.

The concerns raised include:
ï Potentially ineffective overarching employment contracts
ï Dispensations which are invalid, or which have been wrongly applied
ï Not complying with the terms of the dispensation
ï ìExpense paymentsî made tax-free without that level of expense, or in many cases any expense, having been incurred
ï Potential illegal deductions from workersí pay
ï Ineffective and sometimes unlawful management processes; and
ï Breaches of national minimum wage

Zeel Solutions are focused on providing software solutions that not only calculates the Travel & Subsistence allowances, but also helps to ensure compliance in line with HMRC and the approved dispensations.

Rav Cheema, Managing Director of Zeel Solutions embraced the news from HMRC and hopes the publicity will raise the profile of Travel & Subsistence and the need for a solution to help enforce compliance.

ìMany recruitment agencies are still uncertain as to the compliance issues that arise from offering Travel and Subsistence and the legalities involved with using third parties such as umbrella companies, whilst others simply do have a software solution to not only calculate the allowances and one that does checks to help to ensure complianceî commented Rav.

ìWe offer our solutions directly to employers (recruitment agencies) as an alternative to using umbrella companies. This puts employers in total control of their dispensation, compliance and the expenses that are paid directly to their workers,î added Rav.

Zeel Solutions product range includes Ztravelex - a solution that not only calculates Travel and Subsistence allowances but also helps to ensure compliance with Ztimeex – an electronic timesheet solution that gives the workers the ability to self certify their expenses.

David Smith, Head of Sales also commented ìCompliance is right at the forefront of all our solutions and we are committed to increasing awareness of HMRC requirements and ensure that our clients have the appropriate dispensation and employments contract in place before engaging on a projectî