A tale of woe: temps and expense but it's not sacrifice

    View Authors February 2012

    The recent case of Reed Employment Plc & Others v HMRC is another salutary reminder to employers to ensure that their salary sacrifice arrangements are properly implemented. The decision is notable for two principal reasons:

    1. The salary sacrifice arrangements implemented by the Reed group companies to reimburse travel expenses were not effective for tax purposes.
    2. Employment agencies that engage temporary workers under “overarching contracts” should review the terms of those contracts, as it may be that any travel expenses reimbursed are taxable if the engagements are set up such that the temps’ worksites are not temporary workplaces.