Preparing Expenses and Benefits for the 21st Century

Preparing Expenses and Benefits for the 21st Century

By Jo Downend
25 June 2014

The government has launched four consultations on proposed reforms to simplify the administration of employee benefits in kind and expenses.

The consultations will look at the following four areas:

In addition to the four proposals above there will be a ‘review’ of the tax rules governing travel and subsistence expenses and a wider ‘call for evidence’ about payment and reward practices to ascertain where the tax system has not kept pace with changes in these practices.

It is not expected that these reviews will lead directly to any immediate policy change, but the evidence gathered will provide an informal backdrop to shape future policy decisions.

In January 2014, the Office of Tax Simplification published its second report on employee benefits and expenses which concluded that the tax rules and administration in this area could be simplified.

Read the HMRC Employer Bulletin for more information.

The consultation is due to close on 9th September 2014, so it's a great opportunity to put forward your views.