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

Unum UK adds Health Network to Help@hand

Unum UK adds Health Network to Help@hand

Partnership with YoungMinds

Jaskeet Briah
clock 18 June 2025 • 2 min read
Diagnostics rank as most 'essential' employee benefit for businesses

Diagnostics rank as most 'essential' employee benefit for businesses

Benenden Health research

Jaskeet Briah
clock 11 June 2025 • 2 min read
Employee benefits strategy shifting among UK businesses: WTW

Employee benefits strategy shifting among UK businesses: WTW

Businesses looking to improve health benefits

Jaskeet Briah
clock 10 June 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