HM Revenue and Customs (HMRC) has opened a consultation on employee Benefits in Kind

The consultation looks at four measures proposed by the Office of Tax Simplification (OTS), and intends to simplify processes for both employers and HMRC. The four areas under consideration are: The abolition of the £8,500 benefit in kind threshold. If an employee earns less than £8,500 (including taxable benefits) then they have to complete a P9D form in place of the P11D. HMRC reports in 2011/2, it only received 15,000 P9D forms. Statutory exemption for trivial benefits in kind. In 2011/12, HMRC reports more than 500,000 P11Ds were completed providing BiKs of £100 or less. The consultation states each P11D costs an estimated £6.50 to process. Views are invited on the definition of a ‘trivial’ BiK and how this exemption should be structured. Exemption for expenses paid or reimbursed by employers. This involves the removing of the current system of dispensations for reporting non-taxable…