OTS progress report on ‘Quick Wins’ from employee benefits and expenses review
25 October 2013
A progress report has been published on the ‘quick wins’ identified in the Office of Tax Simplification (OTS) interim report which includes voluntary payrolling of benefits in place of reporting benefits on forms P11D. These ‘quick wins’ are proposals that the OTS consider can be done quickly and easily and which would involve minimal change but would make the tax system (particularly administrative aspects) simpler for businesses and their employees in relation to benefits and expenses.
The ‘ quick wins’ have been categorised into four areas: already implemented; should be implemented as soon as possible;
will require further work before they can be put into effect (taking into account issues such as whether they will require legislative amendments or changes to HMRC or employer computer systems or processes); and some being taken forward by other routes. Already implemented Some of the quick wins suggested in the interim report have already been put into operation - the recommendations were based on what consultees told the OTS so suggests HMRC’s communication of the items listed below could be improved. The ability for amended forms P11D and P11D(b) to be submitted online. HMRC has confirmed that it is now possible to submit P11D(b) online, and that this facility will be also available in relation to P11D for tax year 2013/14. Provision for the reimbursement of car fuel where the employee contributes by 6 July. This is already permitted, and is confirmed in HMRC guidance manuals (see EIM25660 and NIM16177). Providing new employers with a link to the relevant sections of the HMRC website when they first register, in order to raise awareness of the employee benefits and expenses issues that may be relevant to their business. HMRC has confirmed that new employers are sent a CD Rom which provides a link to the HMRC website. However, the OTS may look at additional ways of raising employer awareness of employee benefits and expenses as part of their wider review on HMRC administration. Allowing voluntary use of form P46(Car) when a car is replaced. HMRC has confirmed that it is already possible to submit this form online when a car is replaced. Should be implemented soon The OTS say that the following could and should be implemented within the next few months, subject to the availability of HMRC resources. These are: Voluntary payrolling of benefits in place of reporting benefits on forms P11D. HMRC has confirmed that it is already looking at this area, and as part of OTS’s review of HMRC administration they will be working closely with HMRC to explore what gradual changes can be phased in, alongside any legislative changes that may be necessary, in order to achieve this.
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