UK Court Rules Employment Company Expenses Taxable

An employment company wasn’t entitled to tax deductions for employee expenses because it didn’t have a continuous employment contract with its workers, the UK Court of Appeals ruled.

The workplaces where Mainpay Ltd. sent its temporary employees for their assignments would be considered “permanent workplaces,” meaning workers’ travel and subsistence expenses aren’t deductible, the court said Friday, upholding a lower court ruling.

Mainpay argued it had continuing contracts with its temporary workers, and so each place they worked was just a temporary workplace.

That would entitle the company to reimburse the workers for their travel and subsistence ...