Employee benefits and expenses
Date: 27th February, 2014 | Author: Cathy Corns | Comments: 0
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.
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