NMW Consultation - What it means for Contractor Expenses

The government has recently published the finding of a consultation into National Minimum Wage Workers – Travel & Subsistence Expense Schemes.  The consultation was undertaken as it was felt that some Umbrella Companies and Employment Businesses were exploiting lower paid workers, by including Travel & Subsistence claims as part of their National Minimum Wage. 

Simplify’s MD, Emma Hainsworth say, “Simplify have always believed that Travel & Subsistence should not form part of Contractors National Minimum wage, and have always taken the approach that expenses can only be offset down to NMW.  We are pleased that this government consultation has backed the stance that we have taken on this issue.”

“We go further by actively advising those on low wages not to join our Umbrella solution, as we feel it is wrong for those who will not recoup our admin fee to use a service such as ours.  Our aim is for our Contractors to benefit from using Simplify and so we are always honest with those who won’t benefit. ”

We are waiting to see if these recommendations do become law, and here at Simplify we hope they do.