HMRC launches consultation on Benefits in Kind
HMRC has started a consultation to review the rules on benefit in kinds. It has hour main proposals:
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 simpler form (P9D) instead of a P11D.
Statutory exemption for trivial benefits in kind - in 2011/12, HMRC reported that it had to process more than 500,000 P11Ds for benefits in kind of £100 or less and for this reason a new 'trivial' benefit in kind may be introduced.
Exemption for expenses paid or reimbursed by employers
Voluntary pay rolling for benefits in kind - the possibility of payrolling benefits in kind instead of P11D submissions in real time.