Potential changes to travel and subsistence expenses rules could have a disastrous impact on the contracting sector, according to CXC Global.

The international contractor management firm has urged political parties to consider the consequences that a change in regulations would have on professionals. While many commentators have suggested that the potential ‘Brexit’ could have a significant impact on the contracting arena, CXC has insisted that any changes to travel and subsistence claims would have a much more damaging effect. Michelle Reilly, managing director of CXC Global commented. “As we all know the election is only one week away and while many people will be fretting over the UK potentially leaving the EU, that really won’t have a significant impact for a long time and will only affect professionals if the freedom of movement laws are amended.

We should be considerably more concerned about the fact that the Government and leading political parties seem to have an impression of all contractors as cash-rich and out to avoid tax. This simply isn’t the case. As an example, we have over 800 supply teachers on our books who rightfully claim travel and subsistence expenses as they have no fixed working location. Removing their right to claim could mean as much as 15 percent of their take home pay will disappear which could have potentially disastrous consequences. There’s been a lot of talk about improving the lives of working people but there needs to be considerable thought put into any review of travel and subsistence claims, particularly as to who the changes would actually affect.”