OTS publishes details of benefits tax quick wins

The Office for Tax Simplification (OTS) has published the details of its nine ‘quick wins’, which aim to simplify the tax efficiencies on employee benefits and expenses.

The ‘quick wins’, which will come in from January 2014, were identified in the OTS’ interim report on employee benefits and expenses in August 2013.

The government confirmed its plans in its Autumn Statement on 5 December.

The nine ‘quick wins’ include:

  • Employers will be able to make online adjustments up to 6 July after the end of the tax year to account for reimbursements by employees of fuel used for private motoring or in a company car.
  • Employers will be able to use form P46 when a car is replaced.
  • Improved guidance on the availability of pay-as-you-earn (PAYE) settlement agreements and dispensation.
  • Clarity around the fact that overseas and non-domiciled employees can be included within a PAYE settlement agreement.

A range of other recommendations from the OTS is currently before Parliament.

These include:

  • Publishing a list of benefits (and value limits) that HM Revenue and Customs (HMRC) considers to be trivial.
  • Updating booklet 490 to fit modern working patterns.
  • Streamlining guidance and improving forms used to notify employee benefits.
  • Improving HMRC officers’ communication with employers and employers.
  • Allowing voluntary notification of in-year changes to benefits.