There is a short timescale for collecting the results as both organisations would like to provide feedback to the OTS to aid any discussions in the next couple of months. The survey has, where possible, explained the thought process around the questions, but we would recommend respondents take the time to review the interim report prior to completing the survey. The survey will close at the end of business, Tuesday 10 September 2013.
Thank you in advance for your time and input.
CIPP and AAT joint response to the OTS employee benefits and expenses interim report
3 October 2013
The CIPP and AAT have submitted a joint formal response to the recently published ‘Review of employee benefits and expenses: interim report ’ by the OTS, which confirms both organisations support the OTS recommendations. The CIPP and the AAT surveyed their prospective members to obtain views on the quick wins and future recommendations by the OTS (Office of Tax Simplification) in respect of employee benefits in kind. Both the AAT and the CIPP support the OTS recommendations. Encouragingly so does the Exchequer Secretary to the Treasury (XST), David Gauke, as he states in a recent letter to the OTS requesting they continue with their work and report further in the New Year.
The full CIPP and AAT joint response can be accessed through the link on the CIPP website .
OTS review of employee benefits and expenses – second report
30 January 2014
A set of recommendations on how to simplify and streamline the complex system for reporting and taxing employee benefits and expenses has been set out in a report published today by the Office of Tax Simplification (OTS). The report , which is looking to simplify benefits and expenses for four million employees and 300,000 employers, sets out a number of ways to make the reporting of expenses and benefits easier for both employee and employer. The report includes over 20 proposals to simplify the process, such as: Processing benefits through the payroll system, rather than having to submit a P11D (the form used to submit an employee benefit) directly to HMRC – this will reduce the burden on employers and make the reporting more accurate; Extending the PAYE Settlement Agreement (PSA) process to allow employers to deduct all tax due on benefits and expenses. Currently only certain expenses can be paid this way; A de-minimis limit for trivial expenses – anything under £50, the OTS suggests, will not need to be taxed; Clearer rules on the definitions of workplaces, ensuring employees only have one permanent place of work which is where they spend most of their time.
The OTS also sets out two areas for longer term study:
Moving National Insurance Contributions (NICs) and income tax closer together, including harmonising definitions and modernising NIC calculations;
CIPP Policy News Journal
16/04/2014, Page 42 of 519
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