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Employee benefits in kind and expenses

The government has announced that it intends to launch consultations in the summer on four of the measures proposed by the Office of Tax Simplification on employee benefits and expenses.

The four proposed consultations are on:

  • The abolition of the £8,500 pay threshold.
  • Introducing a statutory exemption for trivial benefits in kind.
  • Replacing the current system of dispensations for reporting non-taxable expenses with a general business expenses exemption.
  • Introducing a system of voluntary pay rolling for benefits in kind.

In addition, the Office of Tax Simplification’s report also identified a number of issues with the tax treatment of travel and subsistence expenses which are generally complicated.  The government intends to launch a longer term review of these rules alongside the consultations with a view to producing a new system that reflects working patterns in the 21st century.










Date: 11th June, 2014
Author: Cathy Corns


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