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The four on-going consultations outline proposed changes designed to simplify the administration of employee benefits and expenditures.
In particular, professional employment provider, giant group, has welcomed the planned amendments to the exemption for paid or reimbursed expenses. It says that this could see dispensations abolished in favour of the HMRC scale rates which benchmark global payments.
Matthew Brown, Managing Director of giant, said that this move would ensure fairer processing of employee benefits and expenses: “The potential move away from dispensations will ensure that the HMRC published scale applies across the board, further ensuring a fair and simple assessment of benefits and expenses payments.
"The suggestions outlined in the consultation will also remove some of the more complex reporting that exists, streamlining the process and reducing the potential for any errors.
"This move to the HMRC scale is certainly something we feel is necessary. Indeed giant was the first professional umbrella employer to introduce these scale rates and has been using them since June 2012.”
At the Budget 2014 the Government announced that it would consult on replacing the current system of dispensations for reporting non-taxable expenses with an exemption for expenses paid or reimbursed by employers.
The Government believes that an exemption would be simpler, more transparent, consistent and easier to use for employers than the current system. Its consultation on this subject covers the design features of such an exemption and its administration.
The consultation document is available here:Employee benefits and expenses: exemption for paid or reimbursed expenses.
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Susie Hughes © Shout99 2014
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