On 25 November 2015, the UK Government announced that legislation will be introduced with effect from 6 April 2016 to restrict tax relief for travel and subsistence expenses for workers engaged via an employment intermediary, such as an agency. The UK Government also announced that such relief will be restricted for individuals "working through personal service companies where the intermediaries legislation applies". It is currently unclear exactly how these changes will be implemented but further detail is expected when draft Finance Bill 2016 is published later in December 2015.
More broadly, the UK Government has been running a consultation with regard to reforming the taxation of individuals working via intermediaries. The consultation is considering whether the effective tax treatment of such arrangements should be brought more into line with the effective tax treatment of direct employment. There is currently no indication as to when any changes resulting from this consultation will be implemented.