Mainpay UT – Temporary workers – deductibility of subsistence expenses

The Upper Tribunal ruling in respect of Mainpay was recently released after a hearing held on the 15 and 16 May 2024. The appeal to the Upper Tribunal was made by the employer after the First-tier Tribunal ruled in favour of HMRC. Rather than repeat the details here I refer you to my summary which was published in Taxation on 25 January 2023 (tinyurl.com/4dmmtx34).

The appeal relates to whether Mainpay was right to have made payments of travel and subsistence expenses to workers tax free. The First-tier Tribunal decided that each workplace of the worker should have been considered a permanent workplace. The specific legislation which was the subject of the appeal is to be found at ITEPA 2003 s 338 and s 339. In addition it was commented that no dispensations had been in place at the time with HMRC...