government would consult on four simplifications. HMRC have now published four consultation documents looking at how to take these forward. These cover:
Abolishing the threshold for taxation of BiKs for employees who earn at a rate of less than £8,500 Introducing a statutory exemption for trivial benefits Introducing a system of voluntary payrolling for BiKs Replacing the expenses dispensation regime with a Reimbursed Expenses Exemption
Further information can be found here .
CIPP comment The CIPP policy team will be looking at these consultation documents in detail and will publish surveys and use think tanks to gather member opinion.
CIPP Survey - Employee Benefits and Expenses – Abolition of the £8,500 threshold for lower paid employment and form P9D
3 July 2014
The 2011/12 tax year saw HMRC receive and process some 15,000 P9Ds and so it comes as little surprise that one of the proposals for simplification to the Benefits in Kind and Expenses process would be the abolition of the threshold of £8,500 which results in the need for a form P9D to be completed. You will be aware that the Office of Tax Simplification has carried out a significant amount of research on the subject of Employee Benefits in Kind (BiKs) and Expenses and in response to the publication of the OTS Review of employee benefits and expenses: second report in January 2014, the government, at Budget 2014, announced that they would be consulting on a core package of four measures, with a view to introducing legislation in Finance Bill 2015. Abolishing the threshold for the taxation of BiKs for employees who earn less than £8,500 a year (‘lower paid’ employments), with action to mitigate the effects on any vulnerable groups disadvantaged by the reforms; Introducing a statutory exemption for trivial benefits; Introducing a system of voluntary Payrolling for BiKs; and Replacing the expenses dispensation regime with an exemption for paid and reimbursed expenses. Each change will be consulted on separately and the CIPP Policy team will be producing surveys for each to gather views, experiences and suggestions, which will form the basis of a formal response to each subject of change. The first survey to be published is Employee Benefits and Expenses – Abolition of the £8,500 threshold for lower paid employment and form P9D . As mentioned above, the decision to abolish the threshold has been made, this consultation looks to identify which groups of employers, employees or ‘office holders’ will be affected and what actions might be taken to mitigate the effects of this abolition. The core package consists of the following changes:
Views are welcomed from anyone with an interest however views from affected stakeholders for example, representatives from the voluntary sector, are particularly welcomed.
CIPP Policy News Journal
08/04/2015, Page 156 of 521
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