The government has launched four consultations on proposed changes to simplify the administration of employee benefits in kind and expenses.
The consultations, which were announced in Chancellor George Osborne’s 2014 Budget in March, follow a review of employee benefits and expenses carried out by the Office of Tax Simplification.
The consultations will look at:
- Abolishing the £8,500 threshold for benefits in kind, including actions to mitigate the impacts of vulnerable groups affected.
- Introducing a statutory definition of a trivial benefit in kind.
- Voluntary payrolling of benefits in kind.
- Replacing the dispensation regime with an exemption for qualifying expenses that are paid or reimbursed by employers.
The government is also publishing a call for evidence on remuneration packages.
David Gauke, exchequer secretary to the Treasury, said: “Following the valuable work the Office of Tax Simplification has carried out in reviewing employee benefits and expenses, the government is now consulting on changes that will deliver real improvements for businesses and individuals and their experience of the tax system.
“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.”
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