Policy News Journal - 2014-15

 Introducing a system of voluntary Payrolling for BiKs; and,

 Replacing the expenses dispensation regime with an exemption for paid and reimbursed expenses.

Each change is being consulted on separately and the CIPP Policy team will be producing a separate survey for each to gather views, experiences and suggestions, which will form the basis of a formal response to each subject of change. The concept of a trivial benefit is not new. However it currently requires the employer to apply to HMRC for agreement to exclude certain BiKs on the basis that they are trivial. This consultation looks to seek views on defining what would be considered a 'trivial' benefit and how a statutory exemption should be structured. Trivial Benefits will not include vouchers and would not be provided on a continual or regular basis. The 2011/12 tax year saw some 500,000 P11Ds being completed by employers providing Benefits in Kind with a total cost of £100 or less, and with an estimated cost of £6.50 for HMRC to process each P11D it would appear that in many cases government is processing P11ds that achieve less for the Exchequer in tax and NICs collected than they cost to administer. There is therefore significant reason to bring improvements to this process. Your help in completing this survey is enormous and we thank you in advance. We would recommend that you have the Consultation Paper to hand, whilst the survey aims to be straightforward to complete, the consultation paper does contain examples that would be useful when you are called upon to express a view.

Thank you for your assistance with this survey and your help in designing this future statutory exemption.

Update on benefits and expenses consultations

1 August 2014

HMRC have published a document summarising the scope of the current consultations concerning various aspects of benefits in kind and expenses. At the same time a longer term review of the system of travel and subsistence expenses has been launched. The HMRC document clarifies the timescales under which the five current consultation exercises – four about benefits and expenses and one on remuneration practice – are intended to operate. There seems to be a clear intention to come to some reasonably early decisions. The travel and subsistence review is intended to be a longer term exercise. The aim is to identify some fundamental changes which would reduce errors and misunderstandings – and employer concerns.

CIPP comment The Policy team will consider these papers, and will in due course issue a survey to collate members’ views on the travel and subsistence review if appropriate.

CIPP Survey on the review of Travel and Subsistence payments

18 August 2014

In response to the Office of Tax Simplification’s (OTS) January 2014 report on the tax treatment of employee benefits and expenses, the government announced in Budget 2014

CIPP Policy News Journal

08/04/2015, Page 158 of 521

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