Employee benefits and expenses
The Office of Tax Simplification (OTS) has issued its second report on employee expenses and benefits. The issues on accommodation benefits and termination payments have been deferred to a future report. The report’s recommendations include:
- Voluntary payrolling of benefits.
- Broadening PAYE settlement agreements to cover any tax liabilities on expense and benefits.
- An exemption for qualifying business expenses, to avoid the need for dispensations or for the employee having to declare the reimbursements on P11Ds and the employee claim a deduction.
- Introduce a trivial benefit limit. Payments below this would be exempt.
On travel and subsistence:
- Either provide that an employee can have only one permanent workplace, or redefine “permanent” and “temporary” workplaces;
- Have a specific regime for homeworkers with a flat rate tax free allowance.
It will be interesting to see which of these are taken up.
Date: 27th February, 2014
Articles from this Author
1st November, 2018
Budget 2018 - Changes for businesses
22nd October, 2018
Making the most out of your home? Rent a room relief
3rd May, 2018
Tax changes for non-resident corporate landlords
4th April, 2018
EMI options - a current risk
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
‘No matter the size they all face common issues and they all need a trusted advisor to help them achieve their ambi… twitter.com/i/web/status/1…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole