Policy Legislation Handbook

Taxation of Employee Expenses Call for Evidence 16 June 2017

The Call for evidence continues on the subject of the taxation of employee expenses.

Due to the period of election Purdah closing date for this work was extended until 10 July 2017 to allow interested stakeholders a full opportunity to meet with lead officials from HM Treasury and HMRC.

At the Spring Budget the previous Conservative government confirmed that a call for evidence would be published to better understand the use of the income tax relief for employees’ business expenses, including those that are not reimbursed by their employer.

The main objectives of the call for evidence are to understand:

 if the current rules or their administration can be clearer and simpler  whether the tax rules for expenses are fit for purpose in the modern economy  why the cost to the exchequer of the tax relief for expenses which are not reimbursed has increased

The call for evidence is seeking views on:

 current employer practise on employee expenses  current tax rules on employee expenses  the future of employee expenses

The government will use the information gathered from this call for evidence to inform potential future policy development. No decisions have been made about the issues set out in this document.

The Call for evidence can be accessed on GOV.UK .

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