HMRC consultations on expenses and benefits
18 June 2014
HMRC are consulting on four simplifications following the Office of Tax Simplification (OTS) review of employee benefits and expenses.
In response to the recommendations made by the Office of Tax Simplification (OTS) following their review of employee benefits and expenses, the Chancellor announced that the government would consult on four simplifications. HMRC have now published four consultation documents looking at how to take these forward. These cover:
· Abolishing the threshold for taxation of BiKs for employees who earn at a rate of less than £8,500
· Introducing a statutory exemption for trivial benefits
· Introducing a system of voluntary payrolling for BiKs
· Replacing the expenses dispensation regime with a Reimbursed Expenses ExemptionFurther information can be found here
The CIPP policy team will be looking at these consultation documents in detail and will publish surveys and use think tanks to gather member opinion.