Taxation of employee expenses - CIPP membership Policy roundtable

23 June 2017

This CIPP think tank roundtable will be attended by representatives from HM Treasury and HMRC and we invite you as members of the CIPP to attend.

Prior to the General Election HM Treasury put out a call for evidence on the subject of taxation of employee expenses. This consultation will run until 10 July 2017.

The call for evidence aims to help government better understand the use of existing tax reliefs on employee expenses. The direct cost to the exchequer currently stands at £800 million a year for employee claims for tax relief which reflects a 25% increase in claims between 2009-10 and 2014-15.

To better understand why this increase has occurred, particularly where employees choose to use an agent to submit their claim for relief, rather than submit the claims directly to HMRC, government wants to gather evidence to establish whether:

  • The current rules or administration can be made more clear and simple.

  • Tax rules for expenses are fit for purpose in our modern economy as much has changed since the current tax rules were first introduced and working practices have seen a shift away from manufacturing towards the service sector.

  • The cost to the exchequer for direct claims by employees, particularly through the services of an agent, has increased to ensure that the reliefs are being used as intended.

Evidence is invited from employers and employees under three main areas which are:

  • Current employer practices on employee expenses – these costs are invisible to HMRC because they aren’t reported.

  • Current tax rules on employee expenses - how easy is it for you to follow the rules as they stand?

  • The future of employee expenses.

Quantative as well as qualitative evidence will support the CIPP response to this Call for Evidence and we value the wealth of information and knowledge that CIPP members hold on the increasingly complex subject of employee expenses and employer expense policies.

This CIPP Policy roundtable think tank will be held on Friday 30 June 2017 – 09:30 to 12:00 at High Holborn, London.

For full details and to secure your place around the table please email Samantha Mann, MAAT, MCIPPDip, Senior policy & research officer at policy. Thank you.