Commenting on the Office of Tax Simplification’s (OTS) second report on employee expenses and benefits(PDF 599.2KB) issued today, KPMG Head of Employment Tax, Matthew Hunnybun, said:
“It is clear that the review of employee benefits and expenses by the OTS has involved extensive consultation with employers and their representatives to identify how legislation can be updated to reflect modern working practices. It is of course difficult to balance the competing objectives of HMRC and employers, therefore many of the recommendations will require further consultation before they can be implemented.
“KPMG welcomes the report and believe that this is a step in the right direction. The recommendations around payrolling benefits and broadening PAYE Settlement Agreements will reduce reporting burdens on employers. We also welcome the acknowledgement that the travel and subsistence rules need to be simplified. This can be a complex area for businesses and the guidance provided by HMRC has not kept pace with current working practices; the recommendation by the OTS that guidance should be reviewed every ten years to ensure it reflects changes in work patterns should help to address this.
“A number of the recommendations in the report may however lead to an increased cost for employers and we welcome the opportunity to discuss aspects of the report further with the OTS.”
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Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.