Haulage firms 'could face unexpected tax bills'
Date: 10 October 2007
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Accountancy firm Grant Thornton has warned that UK haulage companies could be hit by unexpected tax bills over the coming 12 months.
HMRC is taking a more hard-line approach to drivers' conditions and employment status within the haulage industry, and is set to scrutinise tachographs and records of overnight and daily subsistence allowances more closely.
Hauliers should therefore expect "a more focussed review of their affairs by staff trained to spot the particular pitfalls relevant to the industry".
Grant Thornton's Ian Carr said: "Whereas in the past, haulier practices had been reviewed but received little in the way of corrective action, HMRC is now focusing on proof of compliance much more than ever before."
He also added that the length of foreign workers' engagement is unlikely to be seen as a significant factor in a review of employment status, meaning that many short-term workers will still fall into the employee category.
As well as this, changes to managed service companies regulations mean that haulage firms could be pursued under transfer of debt provisions for any underpaid tax and national insurance contributions.
The warning comes at a time when fuel duty hikes are placing increased financial pressure on freight haulage firms.
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