Employee benefits and expenses ripe for overhaul
Have you ever thought that the administration of expenses and benefits could be improved or simplified, asks Diana Bruce of the CIPP.
The Office of Tax Simplification (OTS) certainly thinks so and in August they published an interim report which concluded the no surprise news that “the complex system for reporting and taxing employee benefits and expenses is ripe for a complete overhaul”. The OTS gathered feedback from hundreds of people at more than 50 events around the country to find out the issues with the current system. The review is looking to simplify benefits and expenses for four million employees and 300,000 employers.
The report identified some ‘big picture’ issues for further study such as ‘payrolling’ of benefits, abolishing the £8,500 ‘higher paid’ threshold, and smoothing the differences between tax and national insurance rules. The report also lists more than 40 items for possible ‘quick win’ simplifications.
The Chartered Institute of Payroll Professionals (CIPP) and the Association of Accounting Technicians (AAT) have been...
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- Quick wins
- When is a benefit really a benefit?
- Payrolling and P11Ds
- Class 1A NICS
- £8,500 threshold
- Next steps