Government to simplify benefits-in-kind system

clock

The government has launched four consultations on proposed changes to simplify the administration of employee benefits in kind and expenses.

A review of employee benefits and expenses was carried out by the Office of Tax Simplification and announced during March's Budget.

The consultations will look at abolishing the £8,500 threshold for benefits in kind including actions to mitigate the impacts on vulnerable groups affected; introducing a statutory definition of a trivial benefit in kind; voluntary payrolling of benefits in kind and; replacing the dispensation regime with an exemption for qualifying expenses that are paid or reimbursed by employers.

As well as consulting on simplifying the tax treatment of employee benefits and expenses, the government is publishing a call for evidence on remuneration packages.

The OTS published its second report on employee benefits and expenses in January 2014, which concluded the tax rules and administration in this area could be simplified, easing the burden on employers.

As a result, the government published its response at Budget 2014 and outlined the areas it would consult on, as well as announcing a call for evidence on remuneration packages.

A review of the tax treatment of travel and subsistence payments has also been announced which will be launched in due course.

Exchequer Secretary to the Treasury, David Gauke (pictured), said: "We want to make sure we get the structure and detail absolutely right and each consultation will allow us to engage with and learn from those who will be directly affected.

"The government is seeking views from anyone with an interest in these areas and the consultations will close on 9 September 2014."

More on Employee Benefits

Employers feeling the NICs strain

Employers feeling the NICs strain

NI changes on 6 April

Cameron Roberts
clock 01 April 2025 • 1 min read
Cancer carers to cost UK employers £8.5bn in 2025

Cancer carers to cost UK employers £8.5bn in 2025

Impact on finances, time, careers

Cameron Roberts
clock 28 March 2025 • 3 min read
Howden snaps up Barnett Waddingham

Howden snaps up Barnett Waddingham

Provides platform for expansion in global markets

Jaskeet Briah
clock 25 March 2025 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read