New Tax Consultations and HMRC Guidance on Onshore Intermediaries Legislation
The government is shortly publishing four consultations, aimed at reducing the administration burden on some employee benefits and expenses.
The consultations are:
- £8,500 threshold – abolishing this, removing the confusion between P11D and P9D.
- Trivial benefits – introducing a statutory exemption, to reduce administration of small benefits.
- Dispensations – replacing the need to apply and renew with a general business expenses exemption.
- Payrolling benefits in kind – allowing voluntary operation, to reduce P11D reporting.
In addition, there will be a longer-term review of the tax treatment of travel and subsistence expenses to look at areas which currently cause confusion and/or misunderstanding. This will include exploring different principles and methods for determining when travel expenses should attract tax relief, with the aim to ‘produce a new system that reflects working patterns in the 21st century’.
Meetings between Government, employers and industry bodies will take place over the summer, with a focus on speaking to employers in the employment intermediary and construction sector. Hopefully the outcome of this is a more streamlined and readily understandable system for employers and employees.
Onshore intermediaries
HMRC have published updated guidance for both labour providers and workers on their website yesterday. This can be found at http://www.hmrc.gov.uk/news/agency-workers.pdf
As a specialist provider of employment taxes support and advice to the temporary labour and recruitment sector, Dains would be happy to discuss these issues in more detail. Please contact Samantha Davies on 0800 298 3899 or email: sdavies@dains.com