The OTS proposes to focus on four core areas in the coming months:
HMRC’s administration of the system including the P11D form; travel and subsistence; accommodation; and termination payments.
Alongside this, the report makes 43 suggestions for quick simplifications. These include streamlining the cycle to work scheme, aligning tax and NIC treatment of mileage rates over 45p, changes to the HMRC forms and publishing a list of items that automatically qualify for a ‘dispensation’ (meaning no benefit will arise for employees). The review by the tax simplification team – which is looking to simplify benefits and expenses for 4 million employees and 300,000 employers – is at the halfway stage, and the OTS has gathered feedback from hundreds of people at over 50 events around the country to find out the issues with the current system. “It is clear that the current system for reporting expenses and benefits is simply not working well for employers or employees and also, in many cases, HMRC. Time and again – through our workshops and in submissions – people have told us that the rules around travel and subsistence, accommodation or HMRC admin, are causing them problems and costing them time.” “One of our key objectives is making sure the system reflects today’s working environment: evidence suggests that it is outdated in a number of areas. There are some big questions we need to examine, but in the meantime we have also identified some small quick wins which we think would help.” “We are now looking to develop workable ideas that will make things easier for everyone with the aim of significantly reducing the 4.5 million P11Ds completed annually, and will be putting those proposals forward in our final report to the Chancellor before the next Budget.” Final details of the next stage of the review will be agreed with Treasury Ministers over the summer and final recommendations will be reported ahead of Budget 2014. The OTS remains open to views from anybody, which can be submitted through the mailbox: ots- employee.benefits@ots.gsi.gov.uk John Whiting, Tax Director of the Office of Tax Simplification said:
The CIPP and the AAT joint survey on the OTS interim report on benefits in kind
30 August 2013
Have your say in shaping the future of the benefits in kind system.
The Office of Tax Simplification (OTS) has published a review of employee benefits and expenses: interim report . This report is intended to be a summary of findings from the OTS research into this substantial subject. The report identifies some of the main issues and would like feedback on the OTS’s “Big Picture” issues contained within the report, and also on the “quick wins” identified. The report outlines that these are not final recommendations or solutions but are there to highlight at this stage. The Chartered Institute of Payroll Professionals (CIPP) and the Association of Accounting Technicians (AAT) are working jointly to obtain the views from the payroll profession and the accountancy profession. We would therefore appreciate it if you could spare 20 minutes of your time (excluding any reading) to complete this survey .
CIPP Policy News Journal
16/04/2014, Page 41 of 519
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