This Content Was Last Updated on November 5, 2015 by Jessica Garbett
HMRC is consulting on four areas around benefits in kind during the summer.
These were previously highlighted in the Budget and to recap are:
- The abolition of the £8,500 threshold
The government has stated that it ‘believes that this threshold adds unnecessary complexity to the tax system and is consulting on how to mitigate the effects of abolition on vulnerable groups of employees’.
- Introducing a statutory exemption for trivial benefits in kind
The government has stated that it ‘believes that a clear and simple statutory exemption will make administering such benefits substantially easier for employers. The government will therefore consult on the design of such an exemption.’
- Replacing the current system of dispensations for reporting non-taxable expenses with a general business expenses exemption
The government has stated that it ‘believes that an exemption would be simpler, more transparent, consistent and easier to use for employers than the current system. This consultation will cover the design features of such an exemption and its administration.’
- Introducing a system of voluntary payrolling for benefits in kind
The government has stated that it ‘believes that payrolling benefits in kind instead of submitting forms P11D can offer substantial administrative savings for some employers and wishes to create a system to empower employers to do so if they feel it to be beneficial. The government will consult on the design and scope of a payrolling model and is interested to hear also from employers who are already doing this on an informal basis, and what “payrolling” means to them.’
Article contributed by ACCA