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5th January 2012
Rail fares could be factored into contractor tax returns
Contractor tax returns could have to factor in the rise in rail fares this year, as prices have been hiked above the rate of inflation.
According to the latest data from the Hay Group, any rise will result in commuting costs that equate to eight per cent of the average annual salary. This is also bound to have an impact of contractors who travel by train to visit clients and conduct their business.
The effect of this could vary from region to region as the study found that in some areas travel could account for as much as 21 per cent of salaries. It will come as little surprise to contractors that London has the most expensive season tickets in the country, and this does not even take into account the additional cost of travel by bus and tube.
Stuart McMillan, reward information consultant at the Hay Group, commented: “As train fares continue to rise above inflation, and salary increases remain subdued, commuting costs are set to take up more of UK employees’ pay packets.”
Contractors may want to factor in the high cost of travel when they work out their contractor pay with a new client.
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