Government to simplify benefits-in-kind system

Government to simplify benefits-in-kind system

Treasury launches four consultations in a bid to simplify benefits in kind

THE GOVERNMENT has launched four consultations on proposed changes to simplify the administration of employee benefits in kind and expenses.

A review of employee benefits and expenses was carried out by the Office of Tax Simplification and announced during March’s Budget.

The consultations will look at abolishing the £8,500 threshold for benefits in kind including actions to mitigate the impacts on vulnerable groups affected; introducing a statutory definition of a trivial benefit in kind; voluntary payrolling of benefits in kind and; replacing the dispensation regime with an exemption for qualifying expenses that are paid or reimbursed by employers.

As well as consulting on simplifying the tax treatment of employee benefits and expenses, the government is publishing a call for evidence on remuneration packages.

The OTS published its second report on employee benefits and expenses in January 2014, which concluded the tax rules and administration in this area could be simplified, easing the burden on employers.

As a result, the government published its response at Budget 2014 and outlined the areas it would consult on, as well as announcing a call for evidence on remuneration packages.

A review of the tax treatment of travel and subsistence payments has also been announced which will be launched in due course.

Exchequer Secretary to the Treasury, David Gauke (pictured), said: “We want to make sure we get the structure and detail absolutely right and each consultation will allow us to engage with and learn from those who will be directly affected.

“The government is seeking views from anyone with an interest in these areas and the consultations will close on 9 September 2014.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource