The government is to consult on four tax simplifications in response to the Office for Tax Simplification’s (OTS) review of employee benefits and expenses, according to Chancellor George Osborne’s 2014 Budget.
These include abolishing the £8,500 threshold, the voluntary payrolling of benefits, a trivial benefits exemption and a general exemption for non-taxable expenses.
The government also intends to review the rules underlying the tax treatment of travel expenses, and will call for evidence on remuneration practices to inform any future reforms.
As previously announced in the Budget 2013, the government will introduce nine OTS recommendations to simplify the taxation of employment-related securities.
But following consultation, it has decided to delay the introduction of new rules for employment-related securities held by internationally mobile employees until April 2015 when all employment-related securities will be subject to these rules.
Employment-related securities include shares, options and futures.