OTS Calls for Employee Benefits Tax Overhaul
The employee benefits tax and administration system is “ripe for a complete overhaul” according to the Office of Tax Simplification. In a recent report, the OTS identified four areas of major concern, and recommended a full overhaul of the entire system.
The report was produced as part of a review the OTS is currently conducting in the area of employee benefits and expenses. It identified travel and subsistence, accommodation, termination payments, and the administration processes of HMRC itself as areas in need of serious action. However, the report also stated that “in an ideal world” a more complete review would be carried out.
As well as the four areas singled out for action, the report suggested 43 points it called “quick wins.” These, it claimed, were easy ways to simplify and improve processes without making major changes to the rules they are based on.
John Whiting, Tax Director for the OTS, endorsed the views in the report. He said that the current system “is simply not working well for employers or employees.”